Corrupt Politicians Now Hide Loot In Crypto Wallets – EFCC Boss

The head of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has revealed that corrupt politicians and fraudsters are increasingly using cryptocurrencies to conceal their ill-gotten gains from criminal activities to avoid detection.

During a speech at an event commemorating Africa Anti-Corruption Day in Abuja on Tuesday, July 10, Olukoyede highlighted virtual asset fraud and questionable investment schemes as rapidly growing threats that could soon surpass traditional money laundering in Africa.

Represented by Bawa Usman Kaltungo, the Acting Zonal Director of the Kaduna office, the EFCC chairman expressed concern that Africa continues to face massive financial losses, amounting to billions of dollars each year, due to illicit financial flows, with money laundering remaining the primary issue. However, he cautioned that virtual asset fraud is quickly becoming a dominant concern.

“Another rising criminal engagement that has the potential to outpace even money laundering is virtual assets and investment scams,” Olukoyede said.

He clarified that virtual assets, ranging from cryptocurrencies to digital tokens on blockchain, are not inherently unlawful. Yet, he warned that the rapid advancement of technology has provided criminals with new methods to divert and hide stolen wealth.

“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 routed through this channel.”

The EFCC chairman also connected the rise in misuse of digital assets to the proliferation of dubious investment platforms that promise lucrative returns but ultimately deceive unsuspecting Nigerians.

He reassured the public that the Commission remains undeterred.

“Virtual assets fraud and investment scam are not hard nuts to crack. Our proactive, broad-based training and intelligence are already exposing these schemes. We have enormous proofs of operational successes, especially our breakthrough in the investigation and prosecution of the infamous CBEX scam,” he said.

Olukoyede condemned the rapid spread of investment fraud, including Ponzi schemes, across Africa, which exploit desperate investors and worsen economic hardship. “Every exploitation of investors in any guise is considered a fraudulent act,” he insisted.

“Many victims of CBEX might have avoided losses if they had done proper checks. Investors hardly file suspicious transaction reports to the EFCC until after they are defrauded,” he said. “No investment scam can succeed without the negligence of investors,” he said.

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli