Names, Faces Behind CBEX Fraud Scheme in Nigeria
What started as a quick way to make money without rendering any corresponding economic value ended in losses, tears and silent regrets for many people who invested in CryptoBridge Exchange, a fraudulent investment scheme known as CBEX.
Reports filtered in from different sources that the pyramid scheme had crashed in April. Some investors initially doubted the crash until they were no longer able to access their profile dashboards, indicating that they had been locked out without notice. Cumulatively, it is estimated that the scheme bankrupted its believers and subscribers to the tune of N1.3 trillion.
Following the crash, the Economic and Financial Crimes Commission (EFCC) started investigating the scheme and its promoters, promising to retrieve the victims’ funds.
On Thursday, the Securities and Exchange Commission (SEC) also publicly stated that the scheme was unlicensed and had no permission to participate in the country’s capital market.
“The Commission hereby clarifies that neither CBEX nor its affiliates were granted registration by the Commission at any time to operate as a Digital Assets Exchange, solicit investments from the public or perform any other function within the Nigerian capital market,” the SEC stated on X.
Preliminary investigations carried out by the Commission have revealed that CBEX engaged in promotional activities to create a false perception of legitimacy, in order to entice unsuspecting members of the public into investing monies, with the promise of implausibly high guaranteed returns within a short timeframe. CBEX has failed to honour withdrawal requests from their subscribers and abruptly closed their physical offices, amid mounting complaints.”
Using the available information about CBEX, FIJ tracked some individuals who have publicly identified as leaders and promoters of the fraudulent scheme.
OWNERS AND PROMOTERS OF CBEX
In Nigeria, CBEX operated as an affiliate or subsidiary of ST Investment Co., Ltd owned by 55-year-old Harold David Charles, a Briton.
The company partly launched itself into Nigeria and the people’s consciousness through media publications between January 27 and 28, burnishing Charles as a thoroughbred investment expert and wealth manager.
The publications have been archived here, here and here. About the relationship between CBEX and its partner, the cross-published report stated in part, “It is worth mentioning that ST Investment Co. Ltd has also established an important strategic partnership with CryptoBridge Exchange.
With his forward-looking strategic vision, Harold David Charles promotes cooperation between the two parties to provide investors with a safe, efficient and transparent digital asset trading environment.” CBEX was not a registered entity but it was floated by ST Technologies International, which was registered with the Corporate Affairs Commission (CAC), and issued an anti-money laundering certificate with registration number SC 251514550 by the EFCC’s Special Control Unit Against Money Laundering (SCUML) on January 26.
Its other affiliates were Smart Treasure and Super Technology. Notably, one thing that is consistent about these fictitious companies’ names is the initials S.T.
On February 10, Abiodun led his team to open a CBEX office in Abuja, saying, “I am introducing this platform to you again. It is called ST CBEX platform where we trade every day, we make money and we live a good life. We encourage our people and we also bring people onboard so that you need to make money [alone], you don’t need to live a good life [alone]. Tell people about it.
Let people know, let them come onboard and enjoy life.” More than two months earlier, exactly on November 30, the promoters of the suspicious platform had organised a scantily-attended seminar in Lagos, encouraging the audience to bring their “friends and enemies” to sign up, abandon salaried jobs and earn a month’s salary in a day.
