The Economic and Financial Crimes Commission (EFCC) on Monday arraigned two operators of the cryptocurrency investment platform, Crypto Bridge Exchange (CBEX), over alleged involvement in a fraudulent investment scheme promising unrealistic returns to investors.

The defendants, Avwerosuo Otorudo and Chukwuebuka Ehirim, were brought before Justice Mohammed Umar of the Federal High Court, Abuja, on a three-count amended charge bordering on illegal financial operations and unlicensed investment activities.

According to the EFCC, the pair allegedly solicited public funds under the guise of managing a crypto investment scheme, promising returns as high as 88 percent without securing the required regulatory approvals from the Securities and Exchange Commission (SEC) or the Central Bank of Nigeria (CBN).

EFCC counsel, Fadila Yusuf, during proceedings, informed the court of the amended charges dated July 7, requesting the court to substitute them for the earlier ones. The defence counsel, Justice Otorudo, did not oppose the motion.

Upon the reading of the charges, both defendants pleaded not guilty.

Yusuf thereafter requested their remand in a correctional facility, citing the gravity of the alleged offences and risk of flight. However, the defence opposed the move, urging the court to consider their bail application filed on June 30. Otorudo argued that the defendants voluntarily submitted themselves for investigation and had not obstructed the process.

He also questioned the EFCC’s publication alleging the defendants defrauded investors of $1 billion, stating that no such charge had been brought before the court.

Yusuf countered the bail request, arguing that the defendants only turned themselves in after the court compelled them to do so, and warned that they could abscond if released on bail. She added that some of the other suspects remained at large.

Justice Umar declined the request for continued EFCC custody and ordered the remand of the defendants at Kuje Correctional Centre, adjourning the case to July 18 for ruling on the bail application.

*The charges

Count one accuses the defendants of inviting members of the public to invest in CBEX between January 2024 and May 2025 with a promise of up to 88 percent return without SEC approval, violating the Investment and Securities Act, 2025.

Count two alleges that CBEX, without being a licensed bank, advertised for public fund deposits in contravention of Section 44 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

Count three charges them with operating an unlicensed investment management scheme, contrary to Section 57 of BOFIA.

*Background and EFCC investigations

The EFCC had earlier obtained a court order from Justice Emeka Nwite to detain six CBEX operators, including Adefowora Abiodun, Adefowora Oluwanisola, Emmanuel Uko, and Seyi Oloyede, alongside Otorudo and Ehirim.

An affidavit filed by the commission disclosed that the suspects operated through ST Technologies International Limited, promoting CBEX. (BLUE PRINT)