The Chairman of Nigeria’s Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, has raised serious concerns over the increasing use of cryptocurrency by corrupt politicians and fraudsters to conceal stolen public funds.
Speaking at an event in Gombe State marking Africa Anti-Corruption Day, Olukoyede—represented by EFCC’s Zonal Director, Hanafi Sa’ad—revealed that politically exposed individuals are now turning to digital assets like Bitcoin to evade detection by anti-corruption agencies.
“Fraudulent politicians are hiding their loot in cryptocurrencies to beat the investigative dragnets of anti-corruption agencies,” he stated.
Cryptocurrency: A New Tool for Hiding Illicit Wealth
According to the EFCC, these stolen funds are being stored in digital wallets, and payments for illicit services are being made via blockchain-based platforms, making it difficult to trace the money trail. Investment scams are also increasingly being conducted through these digital channels.
Despite the sophistication of these tactics, Olukoyede assured Nigerians that the EFCC is not behind the curve.
“Virtual asset fraud and investment scams are not hard nuts to crack for us,” he said. “Our proactive training and intelligence gathering are exposing many of these schemes.”
One notable example he cited was the successful investigation and prosecution of the CBEX scam, which demonstrated the Commission’s capability to track and combat crypto-related fraud.
Olukoyede also raised the alarm about the explosion of Ponzi schemes and other fraudulent investment platforms targeting vulnerable investors across the continent.
“Investment fraud is spreading like wildfire. Desperate investors are falling for dishonest schemes due to lack of due diligence,” he warned.
He emphasized that no scam succeeds without investor negligence, urging the public to educate themselves about digital assets and financial risks before committing their money.
“Virtual asset scams are preventable. The escape route is knowledge,” Olukoyede said.
EFCC’s Head of Investigation, Austine Adache, however, gave practical advice during his presentation titled “Investment Fraud and Its Impact: The Nigerian Experience.”
He advised Nigerians to:
- Educate themselves on investment opportunities
- Verify licenses and do background checks on companies
- Be skeptical of unrealistic returns
- Avoid pressure to make hasty decisions
- Seek professional advice
- Protect personal information
He also urged victims and potential investors to report suspicious schemes to the EFCC before they get defrauded.
“Too often, people report after losing money. Prevention starts with awareness and early reporting.”
