What started as a quick way to make money without rendering any corresponding economic value, ended in losses, tears and silent regrets for many people who invested in CryptoBridge Exchange, a fraudulent investment scheme known as CBEX.

Reports filtered in from different sources that the pyramid scheme had crashed in April. Some investors initially doubted the crash until they were no longer able to access their profile dashboards, indicating that they had been locked out without notice.

Cumulatively, it is estimated that the scheme bankrupted its believers and subscribers to the tune of N1.3 trillion.

Following the crash, the Economic and Financial Crimes Commission (EFCC) started investigating the scheme and its promoters, promising to retrieve the victims? funds.

On Thursday, the Securities and Exchange Commission (SEC) also publicly stated that the scheme was unlicensed and had no permission to participate in the country?s capital market.

?The Commission hereby clarifies that neither CBEX nor its affiliates were granted registration by the Commission at any time to operate as a Digital Assets Exchange, solicit investments from the public or perform any other function within the Nigerian capital market,? the SEC stated on X.

?Preliminary investigations carried out by the Commission have revealed that CBEX engaged in promotional activities to create a false perception of legitimacy, in order to entice unsuspecting members of the public into investing monies, with the promise of implausibly high guaranteed returns within a short timeframe. CBEX has failed to honour withdrawal requests from their subscribers and abruptly closed their physical offices, amid mounting complaints.?

Using the available information about CBEX, FIJ tracked some individuals who have publicly identified as leaders and promoters of the fraudulent scheme.

OWNERS AND PROMOTERS OF CBEX

In Nigeria, CBEX operated as an affiliate or subsidiary of ST Investment Co., Ltd owned by 55-year-old Harold David Charles, a Briton.

The company partly launched itself into Nigeria and the people?s consciousness through media publications between January 27 and 28, burnishing Charles as a thoroughbred investment expert and wealth manager. The publications have been archived here, here and here.

About the relationship between CBEX and its partner, the cross-published report stated in part, ?It is worth mentioning that ST Investment Co., Ltd has also established an important strategic partnership with CryptoBridge Exchange. With his forward-looking strategic vision, Harold David Charles promotes cooperation between the two parties to provide investors with a safe, efficient and transparent digital asset trading environment.?

CBEX was not a registered entity but it was floated by ST Technologies International, which was registered with the Corporate Affairs Commission (CAC), and issued an anti-money laundering certificate with registration number SC 251514550 by the EFCC?s Special Control Unit Against Money Laundering (SCUML) on January 26. Its other affiliates were Smart Treasure and Super Technology. Notably, one thing that is consistent about these fictitious companies? names is the initials S.T.

Behind the dubious crypto exchange were individuals like Adefowora Abiodun and Oluwanisola Adefowora, both leaders and representatives of CBEX, respectively. Given the similarity in their names, it is suspected that these individuals were either siblings or a couple.

Other persons associated with CBEX included Seyi Oloyede and Emmanuel Uko, who were identified as members.

On February 10, Abiodun led his team to open a CBEX office in Abuja, saying, ?I am introducing this platform to you again. It is called ST CBEX platform where we trade every day, we make money and we live a good life. We encourage our people and we also bring people onboard so that you need to make money [alone], you don?t need to live a good life [alone]. Tell people about it. Let people know, let them come onboard and enjoy life.?

More than two months earlier, exactly on November 30, the promoters of the suspicious platform had organised a scantily-attended seminar in Lagos, encouraging the audience to bring their ?friends and enemies? to sign up, abandon salaried jobs and earn a month?s salary in a day.

Victor Solomon, whose name was displayed in a video report as the team lead, did not respond to a text and WhatsApp chat sent to him on Thursday. On Thursday and Friday, his phone line failed to connect.

FIJ?s found that, aside from organising glamorous seminars in expensive hotel halls and at roadshows, dispatching agents to bring in new subscribers, CBEX?s promoters, they sponsored other programmes including a school inter-house sports, a strategy aimed at gaining people?s confidence in the scheme.

Temitayo Oke in the middle, flanked by his team members at sports competition held in the school on February 10.

According to its Facebook page, CBEX?s promoters got a ?Yellow House? named after the scheme by the management of MAXFEM International Schools, Alagbado, Lagos, at the school?s February 10 inter-house sports competition.

Speaking with Olufemi Stephen Oguntola, the school owner, on Friday, he said he never knew about CBEX until a friend linked him with Temitayo Oklet (Temitayo Oke), a key promoter from Ibadan, Oyo State.

?A friend of mine, who knew we were yet to get a sponsor for our Yellow House, connected me with Temitayo, and we agreed on N400,000 as a sponsorship fee. He paid it through my friend,? Oguntola told FIJ.

A group photograph of the students in the ?Yellow House.? Source: CBEX/St Crypto Investment on Facebook.

He told me that ?ST CBEX House? was their preferred name, and that was why we wrote it on the children?s sportswear. I had never seen him until the competition day and after that day, I have not seen him again. When I heard of the problem, I called him several times but he ignored my calls.?

Asked whether he did any due diligence on CBEX before accepting the sponsorship, Oguntola responded in the negative.

?I did not do any background checks. I accepted their offer because a friend of my mine was the link between us. He also invested in the scheme and lost about $10,000, with the exception of the subscribers affiliated with him,? Oguntola said.

Oke?s phone number was not connecting at press time. He did not respond to FIJ?s text and WhatsApp chat requesting his comments. (FIJ, excluding headline)

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