The Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has raised concerns over the increasing use of cryptocurrencies and other virtual assets by corrupt politicians to conceal illicit wealth and evade law enforcement scrutiny.
Speaking through the Commission’s Zonal Director, Hanafi Sa’ad, during an event marking Africa Anti-Corruption Day in Gombe State, Olukoyede highlighted the evolving tactics of politically exposed persons who are leveraging digital currencies to escape detection.
“These financial flows stem from a range of criminal activities, with money laundering being the most prevalent,” he explained. “However, virtual assets and investment scams are emerging threats that may soon surpass traditional money laundering methods across the continent.”
While acknowledging that cryptocurrencies and digital tokens are not inherently illegal, Olukoyede noted that fraudsters are increasingly using them to hide stolen funds and bypass regulatory oversight.
“Our investigations reveal that some corrupt politicians are now storing illicit wealth in cryptocurrency wallets and using digital payments to stay ahead of anti-corruption investigations,” he said. “Stolen assets and unexplained wealth are being kept in these wallets, and payments for services are routed through such channels.”
Despite the complexity of these digital financial crimes, the EFCC boss assured Nigerians that the agency is fully prepared to tackle the challenge.
“At the EFCC, we are not intimidated by virtual assets fraud or investment scams. Through proactive intelligence gathering and comprehensive training, we are able to detect and disrupt these fraudulent activities,” he stated.
He referenced the Commission’s successful investigation and prosecution of the notorious CBEX scam as proof of its operational capabilities.
Olukoyede also expressed deep concern about the growing prevalence of investment fraud in Africa, especially the surge in Ponzi schemes that prey on vulnerable investors.
“Fraudsters are exploiting the desperation of many by luring them into deceitful investment schemes,” he warned. “Ponzi schemes, in particular, are among the most widespread.”
He urged Nigerians to take personal responsibility by conducting proper background checks before investing and reporting any suspicious transactions to the EFCC.
“Many victims unknowingly support fraud by failing to investigate the legitimacy of investment offers,” he said. “Unfortunately, most suspicious transaction reports only reach us after the investors have been defrauded.”
Olukoyede concluded by stressing that such scams are largely preventable through awareness and vigilance.
“No investment scam can succeed without the investor’s negligence. Adequate knowledge and understanding of financial risks and digital asset operations are essential to avoiding fraud,” he cautioned.
