The Economic and Financial Crimes Commission (EFCC) has uncovered a sophisticated international cryptocurrency fraud network linked to the unregistered trading platform CBEX. The scheme, estimated at over $1 billion, involved complex cryptocurrency transactions routed through wallets in multiple countries, complicating recovery efforts. The EFCC has identified several foreign nationals as key players in the operation and is collaborating with international law enforcement agencies to apprehend suspects and recover stolen funds. ([792 arrested as EFCC gets tough with cryptocurrency fraud syndicate — Nigeria — The Guardian Nigeria News – Nigeria and World News](https://guardian.ng/news/nigeria/metro/792-arrested-as-efcc-gets-tough-with-cryptocurrency-fraud-syndicate/?utm_source=chatgpt.com))
Global Network and Fund Tracing
EFCC Chairman, Ola Olukoyede, revealed that the fraudulent activities spanned multiple jurisdictions, with funds traced to at least four countries. The majority of transactions were conducted in cryptocurrency and routed through wallets outside Nigeria’s jurisdiction, complicating recovery efforts. Olukoyede stated, “I will not sit down and tell you that we are going to restore every victim. It will become practically impossible because quite a certain amount of money has been dissipated and not within our system.” He further confirmed that the principal parties behind the entire scheme are predominantly foreign nationals. ([Crypto investment scam: EFCC arrests 792 suspects, including 148 Chinese trainers in sting operation - Nairametrics](https://nairametrics.com/2024/12/16/crypto-investment-scam-efcc-arrests-792-suspects-including-148-chinese-trainers-in-sting-operation/?utm_source=chatgpt.com))
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Suspects in Custody and International Collaboration
The EFCC has apprehended three suspects who are currently in custody and have provided “very useful statements.” In a significant development, the EFCC declared Elie Bitar, a foreign national, wanted in connection with the $1 billion investment scam. A federal high court in Abuja also granted the commission permission to arrest and detain six CBEX promoters. So far, at least eight Nigerians have also been declared wanted in relation to the scheme. The EFCC is collaborating with foreign counterparts to recover stolen funds and apprehend suspects.
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CBEX Platform and Regulatory Oversight
In April, users of CBEX reported they could no longer access their funds, prompting widespread complaints. The Securities and Exchange Commission later revealed that the digital trading platform was unregistered. The EFCC's investigation has highlighted the platform's role in facilitating the fraudulent activities, leading to increased scrutiny of unregistered cryptocurrency platforms operating in Nigeria.
The EFCC's ongoing investigation into the CBEX cryptocurrency fraud underscores the complexities of combating international financial crimes in the digital age. The commission's efforts to trace funds across multiple jurisdictions and collaborate with international law enforcement agencies are crucial in holding perpetrators accountable and recovering stolen assets. As the investigation progresses, the EFCC remains committed to ensuring justice for victims and strengthening regulatory oversight of digital trading platforms in Nigeria.
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