Two promoters of the failed CryptoBank Exchange (CBEX) have been arraigned in Abuja for allegedly promising Nigerians huge investment returns without SEC approval.
On Monday, the Economic and Financial Crimes Commission (EFCC) brought Avwerosuo Otorudo and Chukwuebuka Ehirim before the Federal High Court in Abuja. They are accused of luring Nigerians to invest in CBEX, a cryptocurrency scheme that promised up to 88% returns. The EFCC says they did this without getting written consent from the Securities and Exchange Commission (SEC).
The case follows months of public outcry after CBEX collapsed, leaving many Nigerians with massive losses. According to the EFCC, the scam may have cost investors as much as N1.3 trillion. The Commission has promised to work with Interpol and other agencies to recover lost funds.
Court documents show that between January 2024 and May 2025, the two men allegedly invited the public to deposit money with CBEX, even though they were not licensed banks or authorized to take deposits. The EFCC says this breaks several Nigerian financial laws, including the Investment and Securities Act and the Banks and Other Financial Institutions Act.
At the hearing, both defendants pleaded not guilty. The EFCC’s lawyer, Fadila Yusuf, asked the judge to keep them in custody until trial, arguing that they might run away because of the scale of the alleged scam. The defence lawyer, J. A. Otorudo, said his clients had not been convicted before and had cooperated with investigators. He asked for bail, saying there was no evidence they took money by false pretence.
After listening to both sides, the judge ordered the men to be kept in the Kuje Correctional Facility. A ruling on their bail application is set for July 18, 2025.
EFCC spokesperson Dele Oyewale earlier assured Nigerians that the Commission is committed to recovering lost investments, stating, “We are working with international partners to bring justice and get people’s money back.”
This case is part of a wider crackdown on illegal crypto schemes in Nigeria. The new Investment and Securities Act, signed into law in March 2025, aims to protect investors and clean up the crypto industry. Many in the tech and finance community hope it will restore trust and stop scammers from taking advantage of Nigerians.
