The Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has warned that an increasing number of Nigerian politicians and fraudsters are turning to cryptocurrencies and other virtual assets to conceal illicit wealth and commit financial crimes.
Olukoyede made the disclosure on Thursday during an event marking Africa Anti-Corruption Day in Gombe State. Represented by the Commission’s Zonal Director, Hanafi Sa’ad, he noted that digital assets have become the new tool for laundering stolen public funds.
“Our findings show that some politically exposed persons are now using cryptocurrencies to hide their loot and evade detection by anti-corruption agencies,” he said.
According to him, these digital wallets are being used to store unexplained wealth, while payments for services are increasingly processed via blockchain platforms—making it harder for authorities to trace illicit transactions.
“Stolen funds are being warehoused in crypto wallets, and fraudulent investment schemes are being conducted through these platforms,” he added.
Despite the growing sophistication of digital financial crimes, Olukoyede assured Nigerians that the EFCC is not overwhelmed. He said the agency is equipped with the training and intelligence needed to track and dismantle such schemes.
“Virtual asset fraud and investment scams are not beyond our reach. We have recorded operational successes, including our breakthrough in the infamous CBEX scam,” he stated.
He further expressed concern over the rapid spread of investment fraud across the continent, particularly the rise in Ponzi schemes preying on financially desperate individuals.
“Fraudsters are exploiting the vulnerabilities of desperate investors through dishonest schemes. Ponzi scams have become particularly rampant,” he noted.
Olukoyede called on Nigerians to be more vigilant and proactive in protecting themselves. He urged the public to conduct proper research before investing and to report suspicious activities early.
“The lack of due diligence by investors enables fraudsters. Sadly, many only report to the EFCC after they’ve already been scammed,” he said. “No scam succeeds without some level of investor negligence.”
He stressed the importance of financial literacy, especially in the emerging field of virtual assets, as a safeguard against fraud.
“Awareness is key. Understanding the risks and how these platforms work is the best protection against being defrauded,” he warned.
Olukoyede encouraged open and factual discussions during the event, particularly from experts, to help demystify digital assets and expose fraudulent practices hiding behind technology.
Also speaking at the event, EFCC’s Head of Investigation, Austine Adache, gave a presentation on “Investment Fraud and Its Impact: The Nigerian Experience.” He emphasized the need for investor education and caution.
“Stay informed. Research investment companies thoroughly, verify licenses, and avoid promises of unrealistic returns,” Adache advised. “Don’t make hasty decisions under pressure, and always seek professional financial guidance.”
