KEY POINTS

• EFCC traces CBEX scam funds to four countries, facing hurdles in recovering cryptocurrency routed through offshore wallets and foreign-operated exchanges.

• Over 50,000 Nigerians defrauded in the scheme face slim chances of restitution, with experts citing legal and technical barriers to asset recovery.

• Nigeria’s crypto fraud epidemic continues amid regulatory gaps, with $1.2 billion lost to similar scams since 2020, per blockchain analysts.

The Economic and Financial Crimes Commission, EFCC, has escalated its pursuit of billions stolen in the Crypto Bridge Exchange, CBEX, Ponzi scheme, revealing that illicit funds have been traced to offshore accounts in four countries, complicating recovery efforts.

EFCC Chairman Ola Olukoyede disclosed this during a televised interview, emphasizing the transnational nature of the fraud. “The principal actors are foreigners operating outside Nigeria’s jurisdiction. We’re collaborating with Interpol and financial regulators in the UAE, Malta, Singapore, and Cyprus,” he stated.

According to SaharaReporters, over 50,000 Nigerians lost savings in the CBEX collapse, which promised 50% monthly returns before abruptly halting withdrawals in April 2025.

Olukoyede confirmed ₦220 billion ($180 million) had been frozen in local accounts but admitted “a significant portion remains untraceable due to cryptocurrency’s anonymity.” Three Nigerian promoters are in custody, but key foreign suspects, including Lebanese national Elie Bitar, remain at large.

CBEX Victims left in limbo as cross-border recovery efforts hit legal roadblocks

Legal experts warn that repatriating funds from jurisdictions like Malta—a crypto haven with stringent privacy laws—could take years. “Even with mutual legal assistance treaties, proving ownership of crypto wallets is like finding needles in a digital haystack,” said Lagos-based financial crimes attorney Adebola Adewumi. The EFCC’s challenges mirror Nigeria’s 2022 prosecution of the “Omega Coin” scam, where less than 10% of $500 million was recovered.

Victims, many of whom mortgaged properties to invest, expressed despair. “I sold my taxi to join CBEX. Now, I’m stranded,” said Abuja resident Chika Obi, echoing sentiments from protests outside EFCC offices. The Securities and Exchange Commission (SEC) reiterated that CBEX was never licensed, urging stricter oversight of fintech platforms. Meanwhile, the Federal High Court has authorized asset seizures from six promoters, including luxury estates in Lagos and Abuja.

Olukoyede vowed to expand international partnerships, citing recent extraditions from Kenya and Ghana. “We’re digitizing our forensic capabilities to track blockchain transactions faster,” he added. However, cybersecurity firm Chainalysis notes Nigeria ranks fourth globally in crypto scam losses, with $1.2 billion vanished since 2020—a trend analysts link to youth unemployment and lax regulations.