The Economic and Financial Crimes Commission (EFCC) on Monday, July 7, 2025, formally arraigned two individuals—Awerusuo Otorudo and Chukwuebuka Ehirim—before Justice Muhammed Umar of the Federal High Court in Abuja. The commission charged them with orchestrating a high-profile fraudulent investment scheme allegedly carried out through a platform known as Crypto Bridge Exchange (CBEX).

In a statement released by the EFCC, the two suspects were brought before the court on a three-count amended charge. The charges focus on obtaining money under false pretenses, deliberately inducing the public into investing in a non-registered financial platform, and conducting financial operations without legal authorization.

Details of the Charges

One of the counts reads:

“That you, Awerusuo Otorudo and Chukwuebuka Ehirim, between January 2024 and May 2025, within the jurisdiction of this honourable court, invited members of the public to deposit funds for a fixed term or on-call investments with CRYPTO BRIDGE EXCHANGE (CBEX), promising returns of up to 88% without obtaining written consent from the Securities and Exchange Commission. By doing so, you committed an offence contrary to Section 96(1) of the Investment and Securities Act, 2025, and punishable under Section 96(5) of the same Act.”

Another charge states:

“That you, Awerusuo Otorudo and Chukwuebuka Ehirim, while not being a licensed bank or authorized financial institution, invited the public through advertisements to deposit funds with CRYPTO BRIDGE EXCHANGE (CBEX), thereby committing an offence contrary to Section 44(1) of the Banks and Other Financial Institutions Act, 2020, and punishable under Section 44(2) of the same Act.”

Defendants Plead Not Guilty

Following the reading of the charges, both defendants entered a plea of not guilty. Subsequently, the prosecution counsel, Fadila Yusuf, requested that the accused be remanded in a correctional facility pending the hearing and determination of their bail application.

Defense counsel, J.A. Otorudo, countered by informing the court that he had already filed a bail application on behalf of his clients. However, Yusuf strongly opposed the motion for bail, emphasizing the need for the court to order their remand, citing concerns about the seriousness of the charges and the integrity of the investigation.

She added, “The learned counsel has complained of EFCC’s detention conditions. Since they are now before this honorable court, my Lord may consider remanding them in a more comfortable accommodation.”

Court’s Decision

In his ruling, Justice Muhammed Umar ordered that both defendants be remanded at the Kuje Correctional Centre. He also adjourned the case to July 18, 2025, for a hearing and possible ruling on the bail application.

Background on CBEX Scheme

The CBEX investment platform, operated by the two accused, had drawn considerable public attention over the past year, primarily due to its aggressive online promotions that promised unusually high returns on crypto-related investments—up to 88% in some instances. These promises lured in thousands of unsuspecting investors nationwide.

The EFCC began its investigation in late 2024 following numerous petitions from victims who claimed to have lost significant amounts of money after investing in the scheme. Initial findings revealed that CBEX did not possess a valid operating license from Nigeria’s financial regulatory authorities, including the Securities and Exchange Commission and the Central Bank.

According to law enforcement sources, funds totaling hundreds of millions of naira passed through the platform within the 16-month period of operation. However, the actual whereabouts of a significant portion of these funds remain unknown.

Legal Ramifications and Broader Impact

The charges against Otorudo and Ehirim are part of a growing list of fraud cases involving crypto-based Ponzi schemes in Nigeria. As digital finance becomes more mainstream, several unregistered entities have leveraged public enthusiasm for cryptocurrency to exploit loopholes in regulation and defraud investors.

Legal experts suggest that if found guilty, the suspects may face lengthy prison sentences, including hefty fines, under both the Investment and Securities Act and the Banks and Other Financial Institutions Act. Section 96(5) of the ISA 2025 provides for stringent punishment for operating without SEC authorization, while Section 44(2) of BOFIA 2020 makes it illegal to accept deposits from the public without proper licensing.

EFCC’s Stance on Crypto-Related Fraud

The EFCC has reiterated its commitment to cracking down on unlicensed financial operations and has urged members of the public to verify the legitimacy of investment platforms before committing funds. The commission also warned that promoters of such schemes would be held accountable under Nigerian financial laws.

In recent months, several similar operations have been shut down, and their promoters arrested. The EFCC has expressed particular concern about the increasing role of social media in spreading fraudulent investment messages, calling for greater digital literacy and regulatory oversight.

Public Reactions and Victims’ Voices

Many victims of the CBEX platform have expressed relief over the arraignment, hoping it will bring some measure of justice. Some investors told reporters that they sold personal assets, including land and vehicles, to invest in CBEX, only to lose everything when the platform suddenly collapsed in May 2025.

“I invested N5 million and was promised almost double that within six months,” one victim lamented. “When I tried to withdraw my returns in May, the platform stopped responding, and no one could reach them anymore.”

Some victim support groups have started mobilizing to attend future court sessions and have launched social media campaigns to raise awareness about the dangers of unregulated financial schemes.

What Comes Next

With the bail hearing now scheduled for July 18, 2025, attention will shift to the arguments presented by both sides. If bail is denied, the trial could proceed swiftly, given the EFCC’s stated readiness to produce witnesses and submit documentary evidence.

As Nigeria continues to grapple with an epidemic of financial fraud involving digital platforms, the CBEX case could set a significant legal precedent. Authorities hope it will serve as a deterrent to others planning similar schemes and signal a renewed commitment to investor protection in the digital age.

The EFCC has urged members of the public who may have been defrauded by CBEX or similar platforms to come forward with evidence to aid ongoing investigations and potential restitution processes.