The Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, has disclosed that the Commission has successfully recovered part of the funds lost by investors in the Crypto Bridge Exchange (CBEX) — a now-defunct digital investment and trading platform implicated in a large-scale fraud scheme.
In a televised interview aired on a national news program, Olukoyede provided insights into the progress of the EFCC’s ongoing investigation into the CBEX debacle, assuring the public that meaningful strides had been made, both in terms of recoveries and arrests.
Progress in Investigation and Arrests
“We have gone far with CBEX,” the EFCC Chairman stated confidently. “We have been able to recover a reasonable amount of money, and we’ve made significant arrests connected to the fraud.”
Olukoyede, however, remained cautious about revealing too many details, emphasizing the sensitivity of the ongoing investigation.
“We are not going to give out much because we don’t want the process to be disrupted. We are still after quite a number of individuals who have been declared wanted,” he added.
Challenges in Recovering Funds
One of the primary challenges facing the recovery process, according to the EFCC chief, is the nature of the digital transactions involved. Since the defrauded funds were moved through cryptocurrency channels, they are difficult to trace and even harder to convert back into conventional currency.
“Investors may not be able to recover their funds in U.S. dollars,” Olukoyede explained. “Even though the funds were taken via crypto wallets, there is no straightforward way to retrieve them in dollar cash form without going through similarly complex channels.”
Sophisticated Laundering Tactics: Use of Non-Custodial Wallets
Olukoyede elaborated further on the technical obstacles hampering recovery efforts, citing the use of non-custodial cryptocurrency wallets by the fraudsters as a major hurdle. These types of wallets do not require Know-Your-Customer (KYC) verification, which means there is no personal identification data linked to them — making it exceptionally difficult to trace the users behind the transactions.
“We are still analyzing a significant number of crypto wallets,” he said. “The fraudsters used non-custodian wallets, which means no KYC. You can’t trace those wallets to any specific individual.”
According to Olukoyede, the perpetrators further laundered the stolen funds by transferring them to wallets overseas — particularly in parts of Eastern Europe and Cambodia — and then dispersed the funds further, complicating tracking efforts.
“From the non-custodial wallets, the money was transferred to other wallets based abroad, especially in Eastern Europe. Some of these wallets have been blocked, especially those where the funds have not yet been moved out,” he confirmed.
Public Advisory: “Nigerians Must Learn from This”
Expressing concern over the continued victimization of Nigerians by similar schemes, the EFCC Chairman warned that some individuals behind the CBEX scam are still operating and that more Nigerians continue to fall prey to such fraudulent platforms.
“I even learnt that some of these perpetrators are still active, and unfortunately, Nigerians are still falling victim. I believe people should learn from this,” he cautioned.
Olukoyede urged Nigerians to exercise greater caution when dealing with unregulated digital investment platforms, particularly those involving cryptocurrency, which remain largely outside the traditional financial regulatory framework.
