The Federal High Court in Abuja has refused bail to three promoters of the collapsed cryptocurrency platform CBEX, accused of defrauding Nigerians of over $1 billion. Justice Emeka Nwite made the ruling on June 30, 2025, after hearing bail applications from the suspects’ lawyers. The Economic and Financial Crimes Commission (EFCC) had arrested the promoters following allegations that they used CBEX and a company called ST Technologies to lure investors. After collecting huge sums, the platform suddenly became unreachable, locking out users from their funds. The judge said the evidence against the accused is strong and noted that the EFCC had already obtained a court order to detain them. Although no formal charges were filed when bail was requested, charges have since been filed and will be heard alongside any future bail applications. Justice Nwite also dismissed claims that one defendant needed urgent medical attention, saying the EFCC could provide hospital care if necessary. Recall that on April 21st, 2025, Daily Tech Nigeria reported that Dr. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC), warned that “becoming influencers or introducing meme coins that do not benefit the Nigerian public will not be tolerated.” He also stated that promoting unregistered or fraudulent investment schemes now carries severe legal consequences, including up to 10 years in prison and fines of at least ₦20 million under the new Investments and Securities Act (ISA) 2025. This decision is a key step in the ongoing investigation into one of Nigeria’s largest crypto scams. The EFCC continues to pursue the case as authorities seek justice for the many victims.
Nigeria ranks third in Africa for ransomware attacks in 2024, INTERPOL report shows
Nigeria has become one of the top targets for ransomware attacks in Africa, ranking third with 3,459 threat detections in 2024, according to the latest report by INTERPOL. The 2025 Africa Cyberthreat Assessment Report reveals that cybercriminals are increasingly focusing on African countries as the continent’s digital economy grows. Egypt and South Africa lead the list with 17,849 and 12,281 ransomware detections respectively, showing that countries with more digital infrastructure face higher risks. Ransomware attacks have hit important sectors like finance, government, telecommunications, and energy. One major case involved Nigerian fintech company Flutterwave, where hackers stole about $7 million in April 2024. Other attacks disrupted government agencies and utility services in Kenya, Cameroon, and South Africa. The report shows dangerous ransomware groups active in Africa, including LockBit, Hunters International, and BlackSuit. These groups use tactics like stealing data and threatening to leak it publicly if ransom demands are not met. Most ransoms are demanded in cryptocurrency, making it harder to track the criminals. Cybercrime now makes up more than 30% of reported crimes in West and East Africa, showing how urgent it is for governments and businesses to improve their cybersecurity defenses. Experts say the rise in ransomware attacks is a warning that digital safety must be a top priority as Africa’s online economy expands. Without stronger protections, more companies and public services risk costly disruptions and data breaches. The INTERPOL report calls for increased cooperation between countries and better security measures to fight these growing cyber threats. This trend affects everyone, from young professionals to students, because it threatens the stability of digital services we all rely on. Staying informed and cautious online is more important than ever.
Nigerian ‘businessman’ to be sentenced in US for $2.5 million romance scam
Charles Uchenna Nwadavid, a 35-year-old businessman from Abuja, will be sentenced in a US federal court on September 23, 2025, after pleading guilty to charges related to a $2.5 million romance scam. Nwadavid admitted to mail fraud and money laundering offences involving victims across the US between 2016 and 2019. He used cryptocurrency platforms like LocalBitcoins to move stolen funds, hiding their final destination. One victim from Massachusetts was tricked into receiving money from five others, which Nwadavid then transferred to his own accounts. He was indicted in Boston in 2024 and arrested in April 2025 after arriving at Dallas-Fort Worth Airport from the UK. If sentenced, Nwadavid could face up to 40 years in prison, fines of up to $750,000, and possible deportation after serving his term. The sentencing will be overseen by U.S. District Court Judge Leo T. Sorokin. This potential sentence follows a strict ruling handed down on June 18th, exactly 12 days ago, when Daily Tech Nigeria reported that five Nigerians were sentenced to a total of 159 years in prison for a $17 million fraud involving romance scams and other cybercrimes. This serves as a warning against online scams and the misuse of digital currencies in illegal activities.
SEC issues warning against unregistered trading platform CMTrading
The Securities and Exchange Commission (SEC) of Nigeria has issued a public warning to investors about CMTrading, a cryptocurrency and commodities trading platform that is not registered to operate within the Nigerian capital market. In an official statement released today, the SEC made it clear that CMTrading is not authorized to solicit investments or conduct any business activities in Nigeria. The Commission emphasized that the platform is not registered under its regulatory framework, making any dealings with it risky and potentially fraudulent. CMTrading reportedly claims affiliation with GCMT South Africa Pty Ltd, which it says is licensed by the Financial Sector Conduct Authority (FSCA) of South Africa and the Financial Services Authority (FSA) of Seychelles. However, the SEC’s investigation found these claims to be misleading. The platform has also been found to use cloned websites of well-known Nigerian and international media outlets, including Punch Newspaper, Vanguard Newspaper, BBC, Channels Television, and Arise Television, to lure unsuspecting investors. Additionally, CMTrading has circulated fake videos and images of prominent Nigerians on social media, falsely promising financial rewards to subscribers. The SEC’s probe into CMTrading revealed several red flags typical of Ponzi schemes. These include promises of unusually high returns, a heavy reliance on referral systems to sustain payouts, and the use of fake websites to manage subscriber investments. Investors are strongly advised to avoid engaging with CMTrading or its representatives, as doing so could result in significant financial losses. To safeguard your investments, the SEC urges Nigerians to verify the registration status of any trading platform before investing. The Commission provides official verification portals where investors can confirm whether a platform is licensed to operate in Nigeria: SEC Fintech and Innovation Hub Registered Operators SEC Capital Market Operators This warning follows a recent SEC alert against another unregistered crypto project, Punisher Coin ($PUN), and Zugacoin GPT which was identified as a pump-and-dump scheme with no real value or regulatory approval.
SEC issues strong warning against unlicensed crypto assets Zugacoin and Samzuga GPT in Nigeria
The Nigerian Securities and Exchange Commission (SEC) has issued a stern warning to the public against investing in two cryptocurrency products, Zugacoin and Samzuga GPT, highlighting that these digital assets are not licensed or approved to operate within Nigeria’s financial market. In an official statement released on Wednesday, the SEC revealed that it had identified online promotions marketing Zugacoin, including its variants SZCB and SZCB2, alongside Samzuga GPT. The commission clarified that none of these assets have received regulatory approval for issuance or trading in Nigeria. “The promoters or issuers of Zugacoin and Samzuga GPT are not registered to operate in any capacity in the Nigerian capital market,” the SEC emphasized. “These coins are not approved by the commission for public issuance.” Following a preliminary investigation, the SEC classified both Zugacoin and Samzuga GPT as meme coins—digital currencies typically lacking a clear use case, intrinsic value, or a solid project foundation. Instead, their value often depends on community hype and the influence of promoters, making them highly vulnerable to manipulative market practices. The commission also warned of the risks associated with “pump-and-dump” schemes, where promoters artificially inflate the price of a coin through misleading marketing to lure investors. Once prices peak, the promoters sell off their holdings, causing the value to plummet and leaving many investors with significant losses. To protect Nigerians from such fraudulent schemes, the SEC urged the public to exercise caution and conduct thorough due diligence before investing in any virtual assets. It advised investors to verify the legitimacy of cryptocurrency platforms and digital assets through the SEC’s dedicated portal. “Investing in unapproved crypto assets like Zugacoin and Samzuga GPT is done at one’s own risk,” the commission warned. This announcement follows similar warnings issued recently against other unlicensed platforms such as Risevest, Stecs, and the meme coin $PUN. The SEC continues to strengthen its regulatory oversight to safeguard investors and maintain the integrity of Nigeria’s capital market.
Five Nigerians sentenced to over 159 years in US prison for $17 million fraud
A United States federal court has sentenced five Nigerian nationals to a combined 159 years in prison for orchestrating a $17 million fraud scheme that targeted more than 100 victims across the globe. The convicted individuals, Damilola Kumapayi, Sandra Iribhogbe, Edgal Iribhogbe, Chidindu Okeke, and Chiagoziem Okeke, were found guilty of running a transnational criminal enterprise that preyed on elderly and vulnerable people. According to US prosecutors, the group used romance scams, business email compromises, and other fraudulent tactics to steal money, often wiping out victims’ life savings. The scheme, which began in 2017, involved laundering stolen funds through a network of bank accounts and sending money to associates in Africa and Asia. Following their arrest, the defendants faced multiple charges, including conspiracy, wire fraud, and money laundering. US District Judge Amos Mazzant handed down lengthy sentences, with some defendants receiving up to 40 years in federal prison. Prosecutors emphasized that the convictions reflect the US government’s commitment to protecting its citizens from international fraudsters. “Transnational organised criminals targeting the hard-earned savings of elderly and vulnerable populations are simply despicable,” said US Attorney Ray Combs. “The defendants’ lengthy sentences in this case reflect the seriousness of their crimes and the dedication of law enforcement officers and prosecutors to bring them to justice.” This case stands as one of the largest involving Nigerians convicted for online fraud in the United States.