The Economic and Financial Crimes Commission (EFCC) has raised concerns about the increasing use of cryptocurrencies by corrupt politicians and fraudsters to conceal illicit wealth and evade law enforcement.
Speaking at an event marking Africa Anti-Corruption Day, with a public lecture titled “Understanding Virtual Assets and Investment Scam”, EFCC Chairman Ola Olukoyede, represented by Daniel Isei (Ilorin Zonal Director), Bawa Usman Kaltungo (Acting Kaduna Zonal Director), and Hajiya Hauwa Garba Ringim (Acting Ibadan Zonal Director) highlighted the growing threat of virtual asset fraud and investment scams across the continent.
“Virtual assets fraud is on the rise. Our findings showed that fraudulent politicians are already perfecting schemes and hiding their loot in cryptocurrencies to beat the investigative dragnets of anti-corruption agencies.
“Stolen funds and unexplained wealth are being warehoused in wallets and payments for services are being done through this window. Investment schemes are also being facilitated through it,” Olukoyede said.
The EFCC chairman also warned about the growing trend of fraudulent investment schemes with the use of virtual assets to lure desperate investors with promises of quick returns.
He decried the growing threat of virtual asset and investment scams across Africa, warning that fraudsters are increasingly leveraging digital technologies to exploit unsuspecting investors.
Olukoyede noted that Africa’s fight against corruption was being undermined by a surge in illicit financial flows, with money laundering and virtual asset fraud topping the list.
The Nation reported the EFCC chairman explaining that virtual assets, including cryptocurrencies and digital tokens, are not inherently criminal but become dangerous tools in the hands of fraudsters.
“Technology is advancing rapidly, and while virtual assets were created for legitimate financial innovation, criminals are exploiting them for money laundering and fraudulent investments,” he said.
Highlighting the infamous CBEX scam, Olukoyede cited it as a case study of how ignorance and negligence among investors could fuel the success of fraudulent schemes.
“The CBEX case showed how failure to conduct due diligence and report suspicious transactions on time can lead to devastating losses,” he said. “No investment scam can succeed without the negligence of the investing public.”
Olukoyede reassured the public that the EFCC is well-equipped to tackle these crimes, thanks to its proactive approach, intelligence gathering, and training.
