Two alleged operators of a failed cryptocurrency scheme, Crypto Bridge Exchange (CBEX), have been released on bail by a Nigerian court amid ongoing investigations into a suspected multi-million dollar investment scam.
Justice Mohammed Umar of the Federal High Court in Abuja granted Avwerosuo Otorudo and Chukwuebuka Ehirim bail on Wednesday, each in the amount of ₦10 million. Their release is conditional on the provision of two sureties holding assets of equivalent value within the jurisdiction.
The two men, now awaiting trial in October, face charges brought by Nigeria’s Economic and Financial Crimes Commission (EFCC), which accuses them of operating an illegal investment platform that falsely promised returns as high as 88%.
Another accused figure in the case, Adefowora Abiodun, CEO of ST Technologies International Ltd., is expected to learn the outcome of his own bail application on 25 July. Prosecutors allege that ST Technologies and CBEX were used interchangeably to defraud investors of vast sums without any regulatory authorisation.
Abiodun’s lawyer argued for bail on medical grounds, stating that his client has been in detention for over 80 days and requires urgent eye surgery. The defence also highlighted Abiodun’s voluntary cooperation with investigators. However, the EFCC objected, contending that the severity of the charges and the potential penalty posed a flight risk.
Investigations indicate that CBEX may have collected over $1 billion in user funds by encouraging investors to convert digital assets into USDT, a stablecoin, and deposit them into company-controlled wallets. Shortly thereafter, access to the investment platform was reportedly cut off, leaving victims unable to retrieve their funds.
The EFCC stated in court filings that ST Technologies was registered as a company but lacked the requisite licences from the Securities and Exchange Commission and the Central Bank of Nigeria to operate as a financial institution.
In April, a separate Federal High Court judge granted the EFCC authority to detain six CBEX-related individuals during the course of its inquiry. The suspects allegedly abandoned their last known addresses in Lagos and Ogun States, prompting the agency to seek arrest warrants and international alerts.
The investigation is part of a broader crackdown on unregulated digital investment platforms in Nigeria, many of which have collapsed in recent years, leaving thousands of victims in financial ruin.
