EFCC traces CBEX crypto funds to four countries, says full recovery unlikely

The Economic and Financial Crimes Commission (EFCC) has tracked funds from the failed CBEX crypto bridge exchange scheme to at least four countries, but warns that full recovery for victims may not be possible.

EFCC Chairman Ola Olukoyede revealed this development during an interview on Channels Television. He explained that while the agency has managed to freeze several accounts and block some funds, the majority of the transactions were carried out in cryptocurrency and routed through wallets outside Nigeria’s jurisdiction.

“We have been able to block some accounts. We have been able to freeze some funds, which I will not be able to give you a figure, but some reasonable amount of funds, we have been able to freeze,” Olukoyede said. “I will not sit down and tell you that we are going to restitute every victim. It will become practically impossible because quite a certain number of money has been dissipated and not within our system.”

Olukoyede also stated that the main suspects behind the scheme are foreigners, complicating recovery efforts. The EFCC has arrested three individuals who are currently in custody and have provided useful information to investigators.

The CBEX platform collapsed in April, leaving many Nigerians unable to access their investments. The Securities and Exchange Commission later confirmed that CBEX was not registered in Nigeria. A federal high court has since authorized the EFCC to detain six CBEX promoters over a $1 billion fraud allegation.

Despite ongoing efforts and collaboration with international partners, the EFCC cautions that some victims may never recover their lost funds due to the cross-border nature of the crime and the use of digital currencies.