A Federal High Court in Abuja has delivered a significant blow to the promoters of the collapsed cryptocurrency scheme, CBEX, by rejecting their bail applications. The three individuals are currently being detained by Nigeria’s Economic and Financial Crimes Commission (EFCC) in connection with an alleged $1 billion fraud that targeted Nigerian investors. This ruling underscores the intensifying legal scrutiny on crypto-related scams and the commitment of authorities to hold perpetrators accountable.
Bail Denied for Alleged CBEX Promoters
Justice Emeka Nwite of the Federal High Court in Abuja ruled on Monday to reject the bail applications filed by the lawyers representing three promoters of the collapsed CBEX cryptocurrency scheme. The defendants had argued that their clients had been held for an excessive period in EFCC custody. However, Justice Nwite, after reviewing the evidence presented by the EFCC, found sufficient grounds to continue their detention.
The $1 Billion Fraud Allegation
The EFCC alleges that the suspects operated through a company named ST Technologies, which was used to lure unsuspecting Nigerian investors into the CBEX scheme. After reportedly collecting over $1 billion from these investors, the platform allegedly became inaccessible, leaving countless individuals stranded and financially devastated. This case highlights the significant scale and impact of sophisticated crypto-enabled Ponzi schemes on retail investors.
Related Bribery Attempt Uncovered in Lagos
In a related development, a prosecution witness testified in a Federal High Court in Lagos about a bribery attempt linked to unauthorized access to internal banking systems. Ajayi Michael Folaseye, an IT department employee at Premium Trust Bank, told Justice Alexander Owoeye that an internal auditor offered him a $7,000 bribe. The bribe was allegedly for providing access to a generic IP address, which could have been used to facilitate illicit financial activities.
Conspiracy to Steal: Bank Employees on Trial
Ajayi Michael Folaseye’s testimony is part of the trial of two bank employees, Kehinde Odeyemi and Matthew Adeniyi Damilola, who are standing trial on a seven-count charge of conspiracy to steal. The EFCC, represented by a team of prosecutors, is actively pursuing this case through its Lagos Zonal Directorate 1. This parallel investigation underscores the broader efforts by Nigerian authorities to combat financial crime across various sectors, including those with potential links to illicit crypto activities.
