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By Lizzy Chirkpi
The Economic and Financial Crimes Commission (EFCC) has made a sobering assessment regarding the recovery of funds lost in the massive Crypto Bridge Exchange (CBEX) investment scheme. Chairman Ola Olukoyede, in a recent interview on Channels Television, stated that a full recovery of the estimated $1 billion scammed from investors is “practically impossible.”
Olukoyede revealed that the EFCC has traced funds linked to the collapsed cryptocurrency platform to at least four different countries.
He explained that the majority of the illicit transactions were conducted using cryptocurrency and funneled through digital wallets located outside of Nigeria, significantly complicating the recovery process.
“We have managed to block and freeze some accounts and have recovered a reasonable amount of money, though I cannot disclose the specific figures at this time,” Olukoyede stated.
He further highlighted a major hurdle in the investigation: “The principal actors behind this fraudulent scheme are predominantly foreign nationals, placing them beyond our immediate legal jurisdiction, which naturally makes recovery efforts more challenging.”
Acknowledging the devastating impact on Nigerian investors who have been unable to access their funds since CBEX imploded in April, Olukoyede offered a bleak outlook on restitution. “Realistically speaking, it will be practically impossible to compensate every single victim fully.
” A substantial portion of the misappropriated funds has already been moved and likely spent outside of our financial system,” he admitted.
Despite the challenges, the EFCC Chairman confirmed that three individuals connected to the scheme are currently in the commission’s custody and have provided valuable information.
He also assured the public that the EFCC is actively collaborating with international law enforcement agencies to pursue all available avenues for asset recovery and to bring the perpetrators to justice.
The CBEX saga unfolded in April, leaving countless Nigerian investors in financial distress. Subsequent investigations by the Securities and Exchange Commission (SEC) revealed that the cryptocurrency exchange was operating illegally, as it was not registered with the regulatory body.
Following this revelation, the Federal High Court in Abuja granted the EFCC’s request for the arrest of six individuals identified as promoters of the alleged $1 billion fraud.
The EFCC’s latest update paints a stark picture of the difficulties involved in recovering funds in complex, cross-border cryptocurrency scams, leaving many victims facing the grim reality of significant financial losses.