EFCC warns politicians hiding stolen funds in cryptocurrency

Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, has raised concerns over the growing use of cryptocurrency by corrupt politicians to hide stolen public funds and avoid detection.

Olukoyede made this known on Thursday during an event in Ibadan to mark the African Union Anti-Corruption Day. He was represented by the Acting Zonal Director of the EFCC’s Ibadan office, Hajiya Hauwa Ringim.

According to him, virtual assets have become a popular tool for concealing illicit wealth, as they allow for easy transfer and storage without traditional banking oversight. While not illegal on their own, he said these digital assets become dangerous when used for fraudulent activities.

He warned that Africa is losing billions to illicit financial flows through crimes like money laundering and cyber-enabled fraud, which continue to undermine the continent’s development.

Olukoyede revealed that the EFCC has observed a growing trend where politically exposed persons are using cryptocurrency wallets to store unexplained funds and run fraudulent investment operations.

He noted that the Commission is strengthening its capacity to track these crimes through intelligence gathering and staff training. He pointed to the successful investigation and prosecution of the CBEX investment scam as an example of the EFCC’s efforts in tackling digital fraud.

He also cautioned Nigerians, especially investors, to exercise due diligence, stating that many scams succeed because victims fail to verify claims or report suspicious activity early. He added that Ponzi schemes remain widespread, often disguised as digital investment platforms offering quick and unrealistic returns.

Olukoyede stressed the importance of public awareness, collaboration among regulatory bodies, and prompt reporting of suspicious transactions as key strategies to combat virtual asset-related fraud.

Also speaking at the event, Professor Oludayo Tade, a criminologist from the University of Ibadan, advised Nigerians to be wary of digital platforms offering unusually high profits. He warned that promises such as “50% returns in a week” are classic signs of fraudulent schemes.

Tade noted that many fraudsters use the images of celebrities and influencers to lure victims, and called on the government to intensify public education campaigns. He added that prevention through awareness is more effective than post-fraud enforcement.

The event was attended by key stakeholders including the Special Adviser to the Oyo State Governor on Security, retired Commissioner of Police Fatai Owoseni, security officials, civil society groups, students, and youth organisations.