THE Economic and Financial Crimes Commission (EFCC) said it has arrested two suspects over the alleged loss of approximately N1.3trillion to Crypto Bridge Exchange (CBEX).
Although four Nigerians have been identified with the company, including two siblings, none of the names has been unveiled by anti-graft agency.
A Briton has also been implicated but the extent of his involvement was still under investigation.
Operatives of the anti-graft agency in-charge of the investigation, suspended public holiday on Friday to work round the clock. According to a source, the EFCC has recorded a breakthrough in arresting two suspects.
The source said “we have started preliminary investigation with the two suspects. It’s a multi-dimensional probe of how CBEX came into the nation’s digital asset trading platform. “The EFCC Chairman, Ola Olukoyede, who returned to the country on Thursday is personally leading the investigation. “Five individuals, including a Briton, are under our searchlight so far but we are not rushing to avoid wrong profiling. However, we have placed all suspects on surveillance.
“It is too early to release the names of the suspects but they are helping to clarify how the company was established, the promoters of the company, those funding it, the secondary companies being used , how the secondary firms were registered, the financial institutions involved, and roles of Corporate Affairs Commission (CAC).
“We have a lot of angles to it, we will surely crack those behind the company.” Asked why the arrested two suspects were not unveiled, the source added: “Investigation is still at preliminary stage, we don’t want to jeopardise it.” “There are claims of N1.3trillion loss by investors, our investigators will verify. We know there is panic but we have to do our job as swift as possible. “
Director-General of the Securities and Exchange Commission (SEC) Dr. Emomotimi Agama yesterday explained why regulatory action was impossible because CBEX was not listed in the regulator’s register.
Speaking during an interview recently, Dr. Agama stressed that the SEC was unaware of CBEX’s operations until recently and reiterated the commission’s mandate to regulate only registered institutions.
The SEC boss said “the first responsibility of the SEC is to watch over regulated institutions within the confines of its available resources.
“Registration actually is the hallmark of regulation. Without registration, the possibility of regulation becomes difficult.” CBEX, Agama explained, was never registered with SEC. The commission had not received any formal reports or inquiries regarding CBEX as an investment platform.
He said “it’s very pathetic that Nigerians will lose their money this way,” he lamented. “But even at that, we must say clearly that the idea or thoughts that the SEC is not working is totally out of it.”
Dismissing claims that CBEX was in the process of obtaining certification from the commission, Agama said: “Such assertions are totally untrue, in capital letters,” warning that no company can operate first and seek SEC licensing later.
“That alone is a red flag. No institution applies to the SEC after operating. You cannot operate without a license from the SEC.”
According to the SEC boss, Corporate Affairs Commission (CAC) registration does not translate to a regulatory approval from the SEC.
He noted that some companies often mislead members of the public by obtaining certificates under misleading classifications. Agama said “sometimes these people are deceptive and manipulative. They may receive a certificate innocently from the CAC, but not for investment services.”
Responding to widespread criticism of the SEC’s public engagement efforts, Agama said the commission has ramped up awareness campaigns, including launching a podcast two months ago and organizing nationwide enlightenment events.
He urged Nigerians to exercise caution and verify investment opportunities before committing funds.
“If there is any investment you are not sure of, contact a financial advisor, a lawyer, an investment advisor, or a stockbroker,” he advised.
“Investments are very serious business, and Nigerians must take time to check and confirm before delving into it,” he counseled
On the possibility of restitution and legal action, Agama assured that CBEX is under investigation and that the commission was working with other agencies to recover funds and prosecute the perpetrators.
“Whatever we can recover will certainly be returned back to the investors. We will bring them to book,” he assured
He urged the press, especially online influencers to act responsibly and avoid amplifying fraudulent schemes, reminding operators of the new provisions under the Investment and Securities Act (ISA) 2025, which imposes a N20 million fine and up to 10 years imprisonment for promoting unregistered investment platforms.
“If you are a blogger, you are an influencer, and you help in participating in this kind of fraudulent activity… the sanction is N20 million in the first instance, and 10 years imprisonment”, Agama warned.
