CBEX Crypto scam: Nigerian authorities launch manhunt for Kenyan suspects

Nigeria is reeling from the collapse of a massive cryptocurrency scam that defrauded investors of over ₦1.3 trillion (Sh 112.45 billion), with authorities now on the hunt for key suspects believed to be Kenyan nationals.

The Economic and Financial Crimes Commission (EFCC), in collaboration with Interpol, has launched an international manhunt for four Kenyans: Serah Michiro, Joseph Michiro Kabera, Israel Mbaluka, and John Okiroh Otieno.

These individuals are believed to have operated the fraudulent platform, CryptoBank Exchange (CBEX), from Lagos, Nigeria, while posing as legitimate crypto entrepreneurs.

CBEX marketed itself as a Singapore-registered, AI-powered crypto trading exchange.

Through Telegram groups and online promotions, it lured thousands of Nigerians and other Africans with promises of 100% returns on investments within 30 to 35 days.

Investors were encouraged to trade in USDT (Tether), a stablecoin, and were rewarded with bonuses for recruiting others—a classic Ponzi structure.

Despite its widespread operations, CBEX was never registered with Nigeria’s Securities and Exchange Commission (SEC). The platform abruptly shut down in April 2025, leaving investors locked out of their accounts and unable to recover their funds.

The collapse triggered outrage across the country, drawing comparisons to the notorious MMM Ponzi scheme that rocked Nigeria in 2016.

In response, Nigeria's House of Representatives expressed grave concern and called for an urgent crackdown on fraudulent digital investment platforms.

The recently enacted Investment and Securities Act, 2025, aims to strengthen regulation by criminalizing unregistered digital exchanges and increasing penalties, up to 10 years imprisonment for offenders.

The EFCC has released the names and photographs of the wanted Kenyan suspects and is appealing to the public for information that may lead to their capture.

Authorities are also urging Nigerians to verify the registration of any investment platform with the SEC or other relevant regulatory bodies before investing.

As the investigation deepens, this case serves as a harsh reminder of the growing risk posed by unregulated digital investments and the urgent need for public awareness and stronger enforcement.