In a case that is shaping up to be Nigeria’s most high-profile crypto-related financial crime prosecution yet, the Economic and Financial Crimes Commission (EFCC) has formally filed criminal charges against two key promoters of Crypto Bridge Exchange (CBEX) for allegedly orchestrating a multi-billion-dollar investment fraud scheme.
Filed on June 10 at the Federal High Court in Abuja under suit number FHC/ABJ/CR/216/2025, the three-count charge targets Avwerosuo Otorudo and Chukwuebuka Ehirim, both of whom are now central figures in what prosecutors describe as an unregulated and deceptive investment operation with alleged losses topping $1 billion.
The Legal Core of the Case
At the heart of the EFCC’s prosecution is the claim that CBEX was never lawfully incorporated under the Companies and Allied Matters Act (CAMA), nor licensed by Nigeria’s capital market regulator—the Securities and Exchange Commission (SEC)—as required for portfolio managers. The EFCC alleges that between January 2024 and May 2025, the accused actively operated a financial investment scheme through CBEX, targeting unsuspecting investors under the guise of high-yield crypto-backed returns.
The charges, spanning violations of three major regulatory statutes—the Investment and Securities Act (ISA), the Banks and Other Financial Institutions Act (BOFIA), and CAMA—may serve as a precedent-setting moment for Nigeria’s evolving digital asset space.
Count One invokes Section 158(1) of the ISA, 2007, which bars any unlicensed entity from administering investment schemes.
Count Two alleges that the duo solicited public deposits via advertising without banking authorization—an offence under Section 44(1) of BOFIA, 2020.
Count Three charges them with carrying out financial services—specifically investment management—without a valid licence, breaching Section 57(1) and (2) of BOFIA.
A Broader Crackdown in Motion
While the CBEX Promoters, Otorudo and Ehirim are the first to face formal arraignment, they are part of a wider dragnet. In April 2025, Justice Emeka Nwite of the Federal High Court had granted the EFCC authority to arrest and detain six individuals linked to CBEX, following an ex-parte motion moved by EFCC counsel Fadila Yusuf. The others named include Adefowora Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, and Seyi Oloyede.
Three of the suspects, including Otorudo and Ehirim, were reported to have voluntarily turned themselves in, a move that could signal plea negotiations or attempts to mitigate penalties pending formal trial.
Investor Protection or Regulatory Reckoning?
This case raises urgent questions about Nigeria’s crypto oversight landscape. With crypto asset adoption surging across Africa’s largest economy—largely driven by distrust in fiat and inflationary pressures—the CBEX saga underscores regulatory vulnerabilities in digital asset fundraising, particularly in the grey zone between fintech innovation and investor exploitation.
While the Central Bank of Nigeria (CBN) and the SEC have taken varied positions on crypto regulation in recent years, the CBEX case could pressure both agencies into forging a unified framework for virtual asset service providers (VASPs), perhaps along the lines of Kenya’s sandbox model or South Africa’s phased licensing regime.
Why It Matters
- Investor Risk: Over $1 billion allegedly raised without registration or oversight.
- Legal Precedent: This could be Nigeria’s first major crypto prosecution under BOFIA 2020 and ISA 2007.
- Market Implications: A conviction could set the tone for how crypto startups and exchanges must interface with regulators moving forward.
- Regulatory Wake-Up Call: The case is likely to galvanize stricter enforcement and possible legislative amendments around digital finance.
As the case against the CBEX Promoters awaits assignment to a judge, the Nigerian investment community—and global crypto observers—will be watching closely to see whether justice will be served, and more importantly, whether it will bring the clarity the Nigerian fintech ecosystem urgently needs.
BRANDECONOMY Insight:
Nigeria’s journey to becoming a digital financial hub must not be built on regulatory sandcastles. The CBEX trial could mark a decisive moment in turning vague crypto enthusiasm into structured, legally compliant digital finance.
