Kenyan authorities have arrested a 26-year-old man accused of masterminding a cyberattack that siphoned nearly $378,000 (KSh 49 million) from local fintech platform JamboPay. The suspect, Joseph Momanyi, was apprehended on April 12 in Kahawa West, Nairobi, following a swift investigation by the Directorate of Criminal Investigations. Police say Momanyi exploited legitimate customer profiles to access the financial system of Web Tribe Limited, JamboPay’s parent company, between July 19 and 24, 2024. He allegedly disabled phone numbers used for transaction alerts, allowing him to divert funds undetected into various M-Pesa wallets, tills, and bank accounts. During the arrest, officers recovered a laptop, multiple mobile phones, and several SIM cards registered under different names. Investigators believe Momanyi worked with a network of accomplices, using WhatsApp and fake identities to evade detection. He has reportedly confessed to recruiting others to provide smuggled accounts for the fraudulent transfers. The breach came to light after Web Tribe flagged suspicious activity. Momanyi has been remanded for seven days as authorities conduct further digital forensic analysis and seek to identify other members of the syndicate.
Court orders final forfeiture of N6.6bn Livingtrust shares linked to Cititrust ponzi scheme
The Federal High Court sitting in Ikoyi, Lagos, has ordered the final forfeiture of over two billion shares in Livingtrust Mortgage Bank Plc, valued at approximately N6.67 billion. The shares, along with funds totaling N42.46 million and $26.44, were linked to fraudulent activities involving Cititrust Holdings Plc, a company previously flagged for operating a Ponzi scheme that defrauded investors. Justice F. N. Ogazi issued the ruling following a thorough investigation by the Economic and Financial Crimes Commission (EFCC). The court found that the shares and funds were acquired through suspicious transactions traced back to Cititrust Holdings Plc, which used complex financial arrangements, including Special Purpose Vehicles, to conceal the origin of the assets. “The evidence presented clearly shows that these assets were purchased using investors’ funds obtained through fraudulent means,” Justice Ogazi stated, dismissing attempts by Cititrust Holdings to contest the forfeiture. The EFCC had initially secured an interim forfeiture order and published the court’s decision to allow any interested parties to challenge the ruling. However, no credible opposition was found, leading to the final forfeiture order. The court directed that the forfeited shares and funds be used to compensate the defrauded investors. Any remaining assets will be handed over to the Federal Government of Nigeria. This ruling comes amid growing concerns over regulatory lapses in Nigeria’s financial sector, especially following the collapse of digital asset platforms like CBEX. Experts have called for stronger government oversight to protect investors from fraudulent schemes. Livingtrust Mortgage Bank, formerly known as Omoluabi Mortgage Bank Plc, remains operational. Recent legal challenges affecting the bank’s governance have been resolved, allowing it to continue its business activities. The Central Bank of Nigeria has also taken steps to ensure professional governance at the bank, recently rejecting a controversial board nominee from the Osun State Government due to concerns over political interference.
EFCC, INTERPOL launch global manhunt after CBEX trading platform collapses
The Economic and Financial Crimes Commission (EFCC) has teamed up with INTERPOL to investigate the dramatic collapse of CryptoBank Exchange (CBEX), a digital trading platform accused of vanishing with over ₦1.3 trillion in investor funds. The move comes after thousands of Nigerians were left stranded, unable to access their savings, and widespread outrage erupted both online and at CBEX’s abandoned offices across the country. CBEX, operated by foreign nationals alongside Nigerian collaborators, abruptly shut down on Monday, April 14, 2025. Many investors woke up to find their account balances wiped out, with the platform demanding additional deposits before granting access, a tactic now seen as a final ploy before the crash. The EFCC revealed that it had begun investigating CBEX before its collapse, acting on credible intelligence reports. EFCC spokesperson Dele Oyewale confirmed ongoing efforts to arrest both local and international perpetrators. “We are on the local collaborators while we are partnering with INTERPOL to trace the foreign operators. Where recovery is possible, we will recover; where prosecution is possible, we will prosecute,” Oyewale stated. The Securities and Exchange Commission (SEC) has also warned Nigerians to avoid unregistered trading platforms and Ponzi schemes, reminding the public that operating such platforms without proper registration is now a criminal offense under the new Investment and Securities Act, 2025. As the investigation unfolds, the EFCC urges Nigerians to verify investment opportunities with regulatory bodies like the Central Bank of Nigeria and the SEC before committing funds. The commission has not yet released details of arrests or asset recoveries, but assures the public that it is committed to dismantling fraudulent schemes and protecting investors nationwide.
CBEX collapse leaves Nigerians in financial distress, sparks outrage over trapped funds
The alleged crash of CBEX, a digital asset trading platform, has left many Nigerians in financial turmoil. The platform, which promised 100% returns on investments within a month, is now facing accusations of being a Ponzi scheme after users reported being unable to withdraw their funds over the weekend. Despite claims by some users that the platform remains operational, withdrawal restrictions have fueled skepticism and concerns about its legitimacy. The Securities and Exchange Commission (SEC) has issued a stern warning to Nigerians, emphasizing that any investment platform not registered with the Commission is illegal. Speaking during a virtual engagement on the Investment and Securities Act (ISA 2025), SEC Director General Emomotimi Agama cautioned against patronizing unregistered platforms like CBEX. Checks reveal that CBEX is not listed in the SEC database. Social media has been abuzz with warnings about CBEX’s operations. A viral post from March by Ub Edem Uman predicted the platform’s collapse, citing its introduction of a “six-month plan” as a red flag. Users have also shared personal stories of loss, including one man who sold his belongings to invest $313 just before the crash.The incident serves as a cautionary tale for Nigerians seeking quick returns in high-risk ventures.
PoS operator in Uyo commits suicide after losing N2.5M to cyber fraud
A tragic incident has shaken the Ini Local Government Area of Akwa Ibom State, as a young Point of Sale (PoS) operator, Utibe Eteffia, reportedly ended his life after falling victim to cyber fraud. Eteffia, in his early 30s, ingested a poisonous substance after losing N2.5 million to scammers commonly referred to as “Yahoo Boys.” The deceased had hinted at suicidal thoughts in cryptic social media posts prior to the incident. In one post, he shared an image of a lit candle with the caption, “Do you believe in reincarnation?” He also urged his followers to show love and support to those in need. Eteffia operated his PoS business near the Nigeria Union of Journalists (NUJ) State Council Secretariat in Uyo. Neighbors revealed he had become withdrawn and visibly distressed in recent days. “Sometimes, he would remain in his house crying,” said Aniefiok Isang, a neighbor and customer. A week before his death, Eteffia reportedly sought rat poison under the guise of dealing with rodents but later purchased a lethal substance from a local chemist. He traveled to his village in Ini LGA, where he consumed the poison late at night after attending church. Raised by his aunt following the loss of both parents at a young age, Eteffia struggled financially despite assistance from family and friends to establish his PoS business. Sources claim he was introduced to fraudulent schemes by cybercriminals but was duped during the process, leading to mental distress. His remains were discovered on the veranda by shocked family members. A relative stated, “We will not bury him now until we know why he took this difficult decision.”
Edo man turns himself in to EFCC after renouncing internet fraud
A 28-year-old internet fraudster from Oredo Local Government Area of Edo State has voluntarily reported himself to the Economic and Financial Crimes Commission (EFCC) after repenting from his criminal activities. The individual, whose name was not disclosed, had been involved in romance scams targeting foreign victims by posing as a Chinese medical doctor working in a war-torn country. He used messaging apps to communicate with his victims in Chinese and exploited them through flattery and false professions of love. Punch Newspaper reports that the fraudster stated that he surrendered to the EFCC because he wanted to stop his criminal lifestyle and turn a new leaf, motivated by the fear of eventual arrest. He was received by the Acting Zonal Director of the EFCC’s Benin Zonal Directorate, Assistant Commander Effam Okim. Meanwhile, Daily Tech has reported on multiple cases highlighting the ongoing efforts by the EFCC to combat internet fraud, including recent arrests and convictions of numerous internet fraudsters in Edo State and across the country.