Six individuals allegedly defrauded investors out of $620,000 in Nigeria through falsely advertising the Crypto Bridge Exchange.

A Nigerian high court has reportedly granted the Economic and Financial Crimes Commission (EFCC) the authority to arrest six individuals linked to an alleged cryptocurrency investment scam.

According to an April 24 report by The Cable, the Federal High Court in Abuja approved the arrest and detention of six promoters of Crypto Bridge Exchange (CBEX), who are accused of defrauding investors of 1 billion naira—approximately $620,000. As of the time of the report, the suspects had not yet been apprehended.

In its request for the arrests, the EFCC stated that the defendants, through their company ST Technologies International Limited, promoted CBEX by advertising and encouraging unsuspecting individuals to invest in cryptocurrencies on the platform.

This development marks yet another move by Nigerian authorities to tighten scrutiny on crypto exchanges. In February 2024, two Binance executives were detained during a visit to Nigeria to discuss the company’s operations.

In April, many CBEX users began reporting that they could not withdraw their funds from the exchange, resulting in online outrage that led to real-world violence. A group of investors stormed CBEX’s local office in Ibadan, looting items like the air conditioning unit in an apparent attempt to recuperate some of their losses.

The case against Binance is still on

The Nigerian case against Binance, in which a US citizen, Tigran Gambaryan, was detained and whose health reportedly deteriorated as he waited in prison, drew criticism from many in the crypto industry and US lawmakers. He was held for eight months on tax and money laundering charges before being released to US custody.

Nigeria’s tax evasion case against Binance continues to move forward after Gambaryan’s release, though the exchange has no office in the country. Essential News reached out to a representative from Nigeria’s Ministry of Information for comment but did not receive a response at the time of publication.