The Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, has revealed that corrupt politicians and fraudsters are now hiding stolen funds in cryptocurrencies to evade detection by security agencies.
Speaking in Kaduna on Thursday during an event marking Africa Anti-Corruption Day, Olukoyede, represented by the Kaduna Acting Zonal Director of the EFCC, Bawa Usman Kaltungo, warned that virtual assets fraud and fake investment schemes are fast becoming major threats to Africa’s economy.
He said:
“Another rising criminal activity that could soon outpace traditional money laundering is virtual assets and investment scams.
Fraudulent politicians are already perfecting ways to hide their loot in cryptocurrencies to beat anti-corruption investigations. Stolen funds and unexplained wealth are now kept in crypto wallets, with payments routed through this channel.”
Olukoyede explained that while cryptocurrencies and digital tokens are not illegal, criminals are using technology to divert and conceal stolen wealth, making it difficult for agencies to trace.
He also linked the misuse of digital assets to the surge in fake investment platforms promising high returns but ending up defrauding innocent Nigerians.
However, he assured that the EFCC is not backing down.
“Virtual assets fraud and investment scams are not hard nuts to crack. Our broad-based training and intelligence gathering are already exposing these schemes. We recorded a major breakthrough with the investigation and prosecution of the infamous CBEX scam,” he noted.
The EFCC boss decried the spread of Ponzi schemes and other fraudulent investments across Africa, insisting that they exploit desperate investors and worsen economic hardship.
He said:
“Many victims could have avoided losses if they did proper checks. Most investors never file suspicious transaction reports to the EFCC until after they are defrauded. No investment scam can succeed without investor negligence.”
Olukoyede stressed the need for public enlightenment to prevent virtual assets and investment fraud, urging financial experts to demystify cryptocurrencies for Nigerians.
“Fraudsters are exploiting the ignorance of people. This window must be closed to safeguard our economy and restore public trust,” he said.
He concluded by wishing participants fruitful deliberations as they tackle the threats of virtual assets and investment fraud in Nigeria.
