The Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has revealed that politicians and corrupt individuals have devised a new way of embezzling money undetected.
He said financial crime perpetrators now invest in cryptocurrency wallets to evade detection that could lead to arrest and unending trials.
Olukoyede, in his opening remarks in Ilorin, Kwara State, on Thursday, said, “There are recent investigations that have shown that politicians and corrupt individuals now hide stolen funds in cryptocurrency wallets to evade detection.”
Olukoyede, represented by the Ilorin zonal director, Daniel Isei, also alerted Nigerians to the growing threat of virtual asset and investment scams.
He warned that fraudsters are increasingly leveraging digital technologies to exploit unsuspecting investors.
Speaking at a public lecture sponsored by the commission’s Ilorin command to mark the 2025 African Union Anti-Corruption Day at Ilorin, he explained that the annual Africa Anti-Corruption Day is to raise awareness about the dangers of corruption and mobilise collective action to combat it.
On this year’s theme that focuses on the evolving nature of financial crimes in the digital age, Olukoyede, in his a address titled: “Understanding Virtual Assets and Investment Scam,” lamented that Africa’s fight against corruption is undermined by a surge in illicit financial flows, with money laundering and virtual asset fraud topping the list.
He explained that virtual assets, including cryptocurrencies and digital tokens, are not inherently criminal but become dangerous tools in the hands of fraudsters.
“Technology is advancing rapidly, and while virtual assets were created for legitimate financial innovation, criminals are exploiting them for money laundering and fraudulent investments,” he said.
He also warned about the growing trend of fraudulent investment schemes using virtual assets to lure desperate investors with promises of quick returns.
Highlighting the infamous CBEX scam, the EFCC boss cited it as a case of how ignorance and negligence among investors often fuel the success of fraudulent schemes.
“The CBEX case showed how failure to conduct due diligence and report suspicious transactions on time can lead to devastating losses,” he said. “No investment scam can succeed without the negligence of the investing public.”
Despite the increasing complexity of virtual asset fraud, Olukoyede assured the public that the EFCC remains a step ahead through proactive intelligence, training, and operational breakthroughs. He noted that the agency has already recorded significant successes in the investigation and prosecution of such crimes.
He emphasised the need for public enlightenment and stakeholder collaboration to tackle the menace.
“Virtual asset and investment fraud are preventable,” he said, suggesting that: “education, vigilance, and timely reporting and interactive fora are steps in the right direction.
In his lecture, Assistant Chief Superintendent James Allison of the EFCC emphasised the growing vulnerability of Nigerians to digital investment scams and cryptocurrency-related frauds.
In his lecture titled “Understanding Virtual Assets and Investment Fraud”, Allison outlined how fraudsters are exploiting virtual assets such as cryptocurrencies, NFTs, and unregulated investment platforms to defraud unsuspecting members of the public.
“Fraudsters are increasingly taking advantage of people’s lack of understanding of virtual assets. They dangle unbelievable returns on investment, create fake trading platforms, and often vanish without a trace once they secure their victims’ money,” he explained.
Allison cited real-life cases handled by the Commission, including young Nigerians who lost millions of naira to Ponzi schemes disguised as crypto-trading platforms. He listed common red flags such as guaranteed high returns, pressure to invest quickly, lack of licensing or registration, and vague company information.
To protect themselves, he advised members of the public to “research thoroughly before investing, verify regulatory compliance, and never trust unsolicited offers.” He ended with a strong caution: *”If it sounds too good to be true, it’s probably a fraud.”*
As the event concluded, he urged participants to engage in open and fact-based discussions, emphasising that fighting corruption and financial fraud is a shared responsibility.
The well-attended event, held at Sinclair Hotel, Ilorin, brought together stakeholders from civil society, youth groups, academia, security agencies, and the media. Discussions at the forum focused not only on threats but also on the collective responsibility of citizens in building a corruption-free Nigeria.