Nigeria Steps Up Crypto Fraud Crackdown with CBEX Arrests
In a move that further underscores Nigeria‘s heightened scrutiny of cryptocurrency exchanges, a Nigerian court has authorized the arrest of six individuals accused of perpetrating investment fraud at the Crypto Bridge Exchange (CBEX).
The Economic and Financial Crimes Commission (EFCC), Nigeria‘s anti-graft agency, obtained the arrest warrant from the Federal High Court in Abuja, according to a report by Nigerian news outlet The Cable. The EFCC alleged that the six individuals, who promoted CBEX, defrauded investors of approximately 1 billion naira (around $620,000).
The EFCC reportedly claimed that the defendants, through their company ST Technologies International Limited, “promoted another company Crypto Bridge Exchange by making adverts, and lured unsuspecting members of the public to invest cryptocurrencies on the CBEX investment platform.” While the suspects were not reportedly apprehended at the time of the news report, the court’s decision marks a significant escalation in the Nigerian government’s efforts to combat crypto-related financial crimes.
CBEX Investor Outrage and Binance Case Add Context
This case follows a wave of investor outcry against CBEX in April, when many users reported being unable to withdraw their funds. The frustration boiled over into real-world consequences, with a group of investors storming CBEX‘s local office in Ibadan, looting items such as the air conditioning unit in an attempt to recoup some of their losses.
The CBEX case also comes on the heels of a separate investigation into Binance by Nigerian authorities. In February 2024, two Binance executives visiting Nigeria to discuss the exchange’s activities were detained and arrested. The case, involving a US citizen, Tigran Gambaryan, who was held for eight months on tax and money laundering charges, drew criticism from many in the crypto industry and US lawmakers.
Regulatory Concerns and Crypto‘s Future in Nigeria
The actions against both CBEX and Binance underscore the evolving regulatory landscape for crypto in Nigeria. While the country hasn’t banned cryptocurrency outright, the recent events highlight the government’s concern about potential financial crimes and the need for stricter oversight.
While Nigeria‘s approach to cryptocurrency is still evolving, the current trend suggests a heightened emphasis on combating fraud and ensuring the integrity of the crypto market within the country. The outcomes of these legal cases will likely play a key role in shaping the future of crypto in Nigeria, providing valuable insights for both industry players and investors.
