The Economic and Financial Crimes Commission (EFCC) has confirmed the recovery of part of the funds linked to the controversial digital trading platform, CryptoBank Exchange (CBEX), which allegedly defrauded thousands of Nigerians.
Recall that investors lost an estimated N1.3 trillion after the platform, which promised 100 per cent return on investment within 30 days, suddenly collapsed and the funds in users’ wallets disappeared.
Speaking during a live interview on TVC, EFCC Chairman, Mr. Ola Olukoyede, disclosed that the Commission has made progress in its investigation, including some arrests, and is still on the trail of other suspects who are currently at large.
“We have made a number of arrests and recovered a reasonable amount of money. The investigation is still ongoing, and we’re being cautious with information to avoid jeopardising the process. Several suspects have been declared wanted,” Olukoyede said.
He explained that the probe has been particularly challenging due to the use of non-custodial crypto wallets by the suspects, which allow users to remain anonymous without Know-Your-Customer (KYC) requirements.
“The criminals used non-custodial wallets, which makes tracking more difficult. From there, they moved the funds to wallets in Europe and Eastern Europe, especially Cambodia, before dispersing the money. We have been able to block some of the wallets where the funds had not yet been withdrawn,” he added.
Olukoyede urged Nigerians to be cautious and learn from the CBEX incident, noting that some people are still falling victim to similar fraudulent schemes.
He also stressed that while the stolen funds were in cryptocurrency, the EFCC had managed to trace and recover part of it through digital forensics.
“There’s no way to recover the money in physical dollars without passing through the same crypto process by which it was stolen,” he explained.
The EFCC has assured the public that efforts are ongoing to recover more funds and bring all perpetrators to justice.
