Crime

Court Grants Bail to Two CBEX Founders, Hears Another Fraud Case

Published by Tope Fakinlede on July 22nd, 2025.

Court Grants Bail to Two CBEX Founders, Hears Another Fraud Case

The Federal High Court in Abuja has granted bail to two individuals linked to the controversial Crypto Bridge Exchange (CBEX), amid ongoing legal proceedings over alleged financial misconduct.

Justice Mohammed Umar approved bail for Awerosuo Otorudo and Chukwuebuka Ehirim, two of the platform’s alleged promoters. Each was granted bail in the sum of ₦10 million with two sureties, who must own property of equal value within the court’s jurisdiction. The residences of the sureties must also be verified by the court’s registrar.

The court scheduled October 13 for the trial to begin.

This follows the earlier arraignment of the defendants on a three-count charge by the Economic and Financial Crimes Commission (EFCC), which accused them of unauthorized financial operations and illegal investment schemes. The charges, under case number FHC/ABJ/CR/216/2025, allege that the defendants collected funds from the public with promises of returns as high as 88%, without securing the required regulatory approval.

Additional CBEX-Linked Suspect Awaits Bail Decision

In a related case, Justice Umar also set July 25 to decide on the bail application of Adefowora Abiodun, Managing Director of ST Technologies International Ltd., another company allegedly connected to CBEX’s fraudulent activities. Abiodun, along with his company, is facing an amended eight-count charge under case FHC/ABJ/CR/215/2025.

The charges involve obtaining money by false pretenses, money laundering, and operating as a financial service provider without licenses from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC). Abiodun and his company pleaded not guilty.

His lawyer, Babatunde Busari, pleaded for bail on lenient terms, noting that Abiodun voluntarily submitted himself for investigation and has a medical condition requiring urgent eye surgery, which has gone untreated during his 80-day detention.

Busari argued that the monetary claims in the case were around ₦20 million and that Abiodun should be released into his custody while awaiting trial.

However, the EFCC, represented by Fatsuma Mohammed, strongly opposed the bail request, citing the severity of the charges and the potential flight risk. She noted that the punishment for the alleged crimes carries up to seven years’ imprisonment, which could motivate the accused to abscond. Justice Umar ordered that Abiodun remain in EFCC custody until the bail ruling.

Background: CBEX and the Alleged Investment Fraud

CBEX is among several digital investment platforms that collapsed after reportedly defrauding investors of large sums. In April 2025, Justice Emeka Nwite of another Federal High Court authorized the EFCC to arrest and detain six individuals connected to the platform, including Adefowora Abiodun, Oluwanisola Adefowora, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo, and Chukwuebuka Ehirim.

The EFCC, in its ex-parte motion, told the court that the suspects were evading arrest and needed to be placed on the red watch list. The commission further alleged that they collected funds from victims, who were asked to convert digital assets into USDT (a stablecoin) and deposit them into crypto wallets controlled by CBEX.

Initially, investors could monitor their funds, but access to the platform was suddenly cut off. The EFCC said over $1 billion in digital assets were collected before the platform became inaccessible.

Investigations revealed that ST Technologies, though registered with the Corporate Affairs Commission (CAC), was not licensed by the SEC to operate as an investment firm. The EFCC also disclosed that the defendants had abandoned their last known addresses in Lagos and Ogun states.

In a previous ruling on June 30, Justice Nwite declined bail for the three main suspects, citing the strength of the evidence presented and the seriousness of the charges.

The EFCC maintains that a clear case of fraud has been established and insists it is in the public interest to proceed with prosecution.