EFCC Arraigns Two CBEX Scam Promoters for Alleged $1 Billion Investment Fraud
The Economic and Financial Crimes Commission (EFCC) has arraigned Awerusuo Otorudo and Chukwuebuka Ehirim, promoters of Crypto Bridge Exchange (CBEX), before the Federal High Court in Abuja.
The duo faces a three-count amended charge bordering on obtaining by false pretenses, inducement, and misleading the public into a fraudulent investment scam.
The EFCC alleges that Otorudo and Ehirim promised investors up to 88% returns on investments without obtaining the necessary regulatory approvals. Specifically, they allegedly failed to secure written consent from the Securities and Exchange Commission (SEC) to operate an investment scheme.
The commission claims this act contravenes Section 96(1) of the Investment and Security Act 2025.
The defendants are also accused of inviting the public to deposit funds with CBEX without being authorized to take deposits, an offense under Section 44(1) of the Banks and Other Financial Institutions Act 2020. Furthermore, the EFCC alleges that CBEX operated an investment management scheme without a valid license, violating Section 57(1) and (2) of the same Act.
During the court hearing, Otorudo and Ehirim pleaded not guilty to the charges. The prosecution counsel, Fadila Yusuf, urged the court to remand the defendants in a correctional facility, while the defense counsel, J.A. Otorudo, applied for bail. Justice Muhammed Umar adjourned the matter to July 18, 2025, for a ruling on the bail application and remanded the defendants at the Kuje Correctional Centre.
The EFCC’s investigation into CBEX began after receiving intelligence about an alleged investment scheme fraud. The commission discovered that CBEX, through advertisements, lured unsuspecting members of the public to invest in its platform with promises of unrealistic returns.
Preliminary investigations revealed that the defendants were not registered with the SEC for investment purposes.
The case has garnered significant attention, with the EFCC pledging to recover losses suffered by Nigerian investors in the alleged N1.3 trillion CryptoBank Exchange scam. The commission’s efforts aim to hold accountable those behind the CBEX scheme and bring justice to affected investors.
