The Economic and Financial Crimes Commission (EFCC) launched an investigation following intelligence reports about a large-scale fraud operation involving foreign nationals in Lagos. A sting operation resulted in the arrest of 792 individuals – 193 foreigners and 599 Nigerians – suspected of engaging in cryptocurrency investment fraud and romance scams. Seized during the operation were approximately 1,000 routers, SIM cards, computers, and mobile phones. The investigation revealed a syndicate operating through Genting International Co. Limited (GICL), a Nigerian-registered company.
EFCC’s Investigation and Findings
An EFCC investigating officer, Owolabi Taiwo, presented an affidavit detailing the investigation. This affidavit revealed that GICL’s Union Bank account received over N2.26 billion between April and December 2024. The primary inflows were traced to cryptocurrency vendors, Chukwuemeka Okeke and Alhassan Aminu Garba, who admitted to receiving a total of $2.39 million in USDT from the syndicate via peer-to-peer trading. Blockchain analysis linked these funds to wallet addresses associated with fraudulent schemes, including Conti.vip.
The investigation further concluded that GICL, established by foreign nationals operating without valid work permits, was used to launder the proceeds of these fraudulent activities, thus violating Nigerian laws.
Court Order and Proceedings
Following an ex parte application by the EFCC, Justice Alexander Owoeye of the Federal High Court in Lagos issued an interim forfeiture order. This order, made pursuant to Section 44 (2) (b) of the 1999 Constitution and Section 17 of the Advance Fee Fraud Act 2006, mandates the temporary forfeiture of digital assets valued at $222,729.86 to the Federal Government of Nigeria. The court directed the EFCC to publish the order in a national newspaper, allowing anyone with an interest in the assets 14 days to contest the forfeiture before the court.
Next Steps
The court adjourned the case to March 7, 2025, for a compliance report. This suggests further proceedings are anticipated to determine the permanent forfeiture of the assets.
Conclusion
This case highlights the EFCC’s ongoing efforts to combat cybercrime and financial fraud in Nigeria. The swift action by the court in ordering the interim forfeiture of these digital assets demonstrates a commitment to recovering proceeds of unlawful activities and prosecuting those involved.
The upcoming compliance report and subsequent court proceedings will determine the ultimate fate of the seized assets and the legal consequences for those implicated in the alleged criminal activities.
