The Economic and Financial Crimes Commission (EFCC) has made progress in recovering stolen cryptocurrency funds connected to the Crypto Bridge Exchange (CBEX) fraud. The agency announced this development along with updates on arrests related to the case.
The EFCC disclosed that the CBEX platform scam involved a staggering N1.3 trillion. This information was revealed by the commission’s chairman, Mr. Ola Olukoyede, during an interview with TVC.
According to Olukoyede, the EFCC has recovered a portion of the funds lost in the CBEX fraud and continues to make significant strides in the investigation. He highlighted that the scam defrauded numerous Nigerians through a deceptive digital investment platform.
He explained that while the stolen funds were initially in cryptocurrency, the EFCC successfully traced and retrieved some of the money. However, the process of converting the recovered crypto back into cash remains complicated due to the unique nature of digital currencies.
Olukoyede stated, “The way the funds were stolen is the same way they will be recovered. It’s a complex process to convert the cryptocurrency into dollars or cash.”
The EFCC chairman also confirmed that several suspects have been apprehended, but others are still on the run. He emphasized the importance of maintaining confidentiality to avoid disrupting the ongoing investigations.
One of the challenges the EFCC faces is the use of non-custodial wallets by the fraudsters. These wallets don’t require identity verification (KYC), making it hard to trace the criminals. Olukoyede explained that the stolen funds were moved to wallets in Europe and Cambodia, with some still undistributed.
He added, “We’ve managed to block certain wallets holding undistributed funds. However, many Nigerians continue to fall victim to these scams, which is unfortunate.”
CBEX collapsed in April after users reported withdrawal issues and lost access to their accounts. This collapse led to losses of over N1.3 trillion, causing outrage among affected investors and sparking discussions on social media.
