Olukoyede: Politicians now conceal loots in crypto wallet as other speakers raise awareness on crypto fraud
Amid ongoing efforts by the Economic and Financial Crimes Commission (EFCC) to fish out corrupt practices among politicians in Nigeria, Ola Olukoyede revealed how self-seeking public holders go out in concealing their loots in crypto wallet.
EFCC chairman Ola Olukoyede has disclosed that some corrupt Nigerian politicians now convert their loots into crypto currencies to deter scrutiny and detection by anti-graft agencies.
Olukoyede disclosed that the agency had unearthed a rampant attitude of these kleptomaniacs using cryptocurrency wallets to conceal stolen public funds and carry out illegal transactions.
This revelation was made yesterday, Thursday, 10th July, 2025, at an event commemorating Africa Anti-Corruption Day, simultaneously held in Abuja, Lagos and Ibadan (Oyo State).
Other speakers at the event also decried the rate at which Nigerians fall victims to crypto scam, including the CBEX fraud, to where Nigerians were defrauded of over N1.3th.
Politicians Now Conceal Loots In Crypto Wallet ─ Olukoyede
The EFCC chair said: “Virtual asset fraud is on the rise. Our findings show that fraudulent politicians are already perfecting schemes and hiding their loot in cryptocurrencies to beat the investigative blackness of anti corruption agencies.
“Stolen funds and unexplained wealth are being warehoused in wallets and payment for services are being done through this window,” he said.
Olukoyede also issued a warning that as the increase in virtual assets had enhanced global financial transactions, it has also ushered-in a new way for financial crimes and money laundering.
“Technology is moving at a supersonic speed around the world, he said.
“The advent of virtual assets is a response to one of the qualities of money as a store of value like it is known in our elementary economies.”
“However, as with every progressive innovation, fraud starts to usually evolve, evolve ways of perverting their genuine purposes,” he added.
He stressed that the EFCC was helpful amidst sophisticated scheme, pointing that diligent training and intelligence sharing had strengthened the anti-graft body to identify and look into such cases.
“But for us in the EFCC, virtual asset fraud and investment scams are not hard nuts to crack.
“Proactive and broad-based training and intelligence are bringing fraudulent schemes to the fore,” he said.
At the Lagos event, Olukoyede, stood-in by the Chief of Staff/Lagos Zonal Director< Lagos Zonal Directorate I, C. E. Michael Nzekwe, stated that virtual assets had become a precarious instrument played by scammers and corrupt public office holders.
He, the, warned that virtual assets scam had been on the rise in Nigeria and Africa, with the scammers employing the anonymity and nature of the blockchain-based platforms.
Politicians Now Conceal Loots In Crypto Wallet ─ Olukoyede
He lamented the fraudulent use of the platform by the actors as it is widely known that it was created for convenience and a store of value.
In Ibadan, Oyo State, at the event hosted at the Conference Hall of the Jagz Hotel, Olukoyede was represented by the Acting Zonal Director, Ibadan Zonal Directorate, Huawa Ringin, stated that invest scam, including virtual assets fraud, was proliferating like wildfire across the continent of Africa.
In Abuja, the Deputy Governor of Economic Policy Muhammad Abdullahi, representing the governor of the Central Bank of Nigeria, Yeni Cardoso, said that the country had recorded a surge in cryptocurrency transactions, which had made the financial transaction prone to danger.
He noted that in Nigeria, more than $56bn in transactions related to crypto were accounted between July 2022 and June 2023.
According to the CBN governor: “In Nigeria, over $56bn in crypto-related transactions were recorded between July 2022 and June 2023, making the country Africa’s digital transaction leader.”
Howbeit, he noted that the growth did not come without consequences. In his statement, he revealed that the CBN’s 2024 financial Stability Report revealed a 45 per cent rise in financial scam cases, with 70 per cent of the losses could be traced to digital platforms and unregulated virtual asset services.
“Furthermore, over 30 Ponzi-style investment schemes exploiting digital currency narratives have been flagged by the SEC and other agencies,” he said.
He issued a warning that this report could have a lasting negative effects on Nigeria on the international financial stage.
Politicians Now Conceal Loots In Crypto Wallet ─ Olukoyede
“These developments pose major risks, including loss of consumer confidence, weakening of financial integrity, and reputational challenges for Nigeria in the global financial system,” he said.
Cardoso stated that the CBN and the Securities and Exchange Commission had inaugurated a committee to regiment the virtual asses space, aided by the EFCC and the Nigerian Financial Intelligence Unit.
He said: “We have intensified our regulatory and supervisory responses in several critical areas. Namely, on virtual accounts, following an extensive review of the operations of virtual accounts by deposit money banks and their fintech partners, we uncovered systemic weaknesses.
“These include poor KYC, knowing of customer practices, and insufficient transaction monitoring.
“We have acted to ensure that all firms strengthen KYC processes, improve oversight of fintech partnerships, and adhere to AML-CFT obligations,” he said.
The CBN governor also declared that the summit bank was in dialogue with the EFCC to establish a National Virtual Asset Wallet to store confiscated digital assets.
He added that Nigeria’s reaction must include public enlightenment, aimed at young people who are usually coerced into investing in unauthentic investment schemes.
“Technology-driven financial crimes are borderless, faceless, and fast-moving. Combating them requires strong institutions and coordinated action,” he said.
According to the seminar in Lagos, an anti-fraud expert, Kaina Garba, cited key meanings and terminology nitty-gritty of the virtual asset space.
He called the virtual assets, including cryptocurrency and tokens, digital representatives of value which could be transmitted online, but different from fiat money or traditional securities like stocks.
Garba issued a warning that the proliferation of digital finance had also occasioned new forms of criminality, like Ponzi schemes hid under the pretext of crypto investments, unauthentic initial coin offerings, phishing attacks on crypto wallets and money laundering through crypto mixers.
Politicians Now Conceal Loots In Crypto Wallet ─ Olukoyede
“Criminals now exploit virtual assets to defraud unsuspecting investors. Many disappear with people’s hard-earned money after marketing fictitious tokens or projects,” he said.
Standing-in for the SEC, Mr. John Achile, the Divisional Head of Legal and Enforcement, reiterated the commission’s control role under the 2025 Investment and Securities Act.
“The SEC has a dual responsibility: investor protection and market development. With digital assets now legally recognised, we are regulating this space through structured incubation programmes and licensing procedures,” Achile stated.
He noted that SEC had established a Digital Asset Division and enhanced two incubation streams: accelerated and maintained, to deeply understand the applicants’ business models before issuing licenses.
“We do not just issue licences. We engage prospective exchanges or service providers to understand their operations and determine compliance before approval,” he explained.
In his lectures delivered in Ibadan, Oyo State, titled: “Understanding Virtual Asset and Investment Fraud,” a professor of Criminology, Oludayo Tade, said, “People fall victim to fraud. What can we do?
“We need to ensure that anything too good to be true is a red flag. It’s a red flag because you know that we are in Nigeria and you know the condition of things.
“You know that even if you invest in a bank, the returns cannot be 50 per cent and somebody is offering you that to happen within a week.
“Another thing that they do is also to use the image, the reputation of individuals and organisations to launder their fraudulent tactics.
“But to prevent virtual fraud, virtual assets, you need to increase and improve on awareness level.
Politicians Now Conceal Loots In Crypto Wallet ─ Olukoyede
“How many Nigerians are aware of it? I’m very sure that those who fell victim to CBEX would find another scheme that is coming and will still join because people are looking for opportunities.”
In his lecture, DCC OPS Olugbesan, representing the Oyo State Sector Commander of the Federal Road Safety Corps (FRSC), Rosemary Alo, noted that the combined efforts in monitoring and controlling the movement of the vehicles, particularly in curtailing the use of unregistered, counterfeit or cloned number plates, had significantly supported in the disruption of illegal movements and the recovery of loots.
Politicians Now Conceal Loots In Crypto Wallet ─ Olukoyede
