The Economic and Financial Crimes Commission (EFCC) has raised alarm over a disturbing trend where corrupt politicians are increasingly hiding stolen public funds in cryptocurrencies to evade investigation and prosecution.
EFCC Chairman, Mr. Ola Olukoyede, made this revelation during an African Union Anti-Corruption Day event held on Thursday in Ibadan, where he highlighted the growing use of virtual assets as a preferred channel for concealing illicit wealth.
Speaking through the Commission's Acting Zonal Director in Ibadan, Hajiya Hauwa Ringim, Olukoyede explained that virtual assets are digital monetary representations that can be traded or transferred digitally. He emphasized that while cryptocurrencies themselves are not inherently criminal, they become problematic when exploited for fraudulent purposes.
"We have observed an alarming increase in politicians using cryptocurrency wallets to store unexplained wealth and facilitate fraudulent investment activities," Olukoyede stated.
The EFCC chairman also expressed concern over Africa's mounting losses to illicit financial flows, identifying money laundering and sophisticated digital fraud schemes as significant obstacles to the continent's development goals.
To counter these emerging threats, Olukoyede revealed that the Commission is enhancing its capabilities through specialized training and intelligence gathering. These efforts have already yielded results, including breakthroughs in the investigation and prosecution of the CBEX investment scam.
The anti-graft agency chief warned investors against negligence, noting that most financial scams succeed due to victims' failure to conduct proper due diligence and delays in reporting suspicious transactions to relevant authorities.
"Ponzi schemes remain widespread, with desperate investors easily falling prey to enticing but fake digital investment promises," he cautioned.
Olukoyede emphasized that virtual assets fraud can be prevented through increased public awareness, proactive measures, and stronger engagement between anti-corruption agencies and financial regulators. He urged citizens to educate themselves about digital fraud and report suspicious schemes before they escalate into national scandals.
This revelation comes amid growing concerns about the intersection of political corruption and emerging financial technologies in Nigeria, highlighting the need for stronger regulatory frameworks and enhanced monitoring of digital assets.
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