The Chairman of Nigeria’s Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has raised fresh concerns about the rising use of cryptocurrencies by corrupt politicians to conceal looted funds—an assertion coming just hours after the International Monetary Fund (IMF) warned that virtual assets pose serious threats to Nigeria’s economic and financial stability if left unchecked.
Speaking during a public lecture at the EFCC headquarters in Abuja on Thursday to mark the 2025 African Union Anti-Corruption Day, themed “Understanding Virtual Asset and Investment Fraud,” Olukoyede disclosed that the Commission has uncovered multiple cases where politically exposed persons have diverted stolen public wealth into cryptocurrency wallets to shield them from detection.
“Our findings showed that fraudulent politicians are already perfecting schemes and hiding their loot in cryptocurrencies to beat the investigative dragnets of anti-corruption agencies,” he stated. “Stolen funds and unexplained wealth are being warehoused in wallets, and payments for services are being done through this window.”
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According to Olukoyede, the anonymity and decentralized nature of cryptocurrency platforms are enabling corrupt elites to bypass traditional banking systems and regulatory oversight, making it increasingly difficult to trace financial crimes.
The EFCC’s revelation comes just days after the International Monetary Fund issued a stark warning about Nigeria’s growing exposure to virtual assets. In a country-focused report titled “How Nigeria Can Unleash Its Economic Potential,” the IMF cautioned that the rapid adoption of cryptocurrencies in Nigeria could create major risks for the financial system—particularly as crypto assets are already being used to facilitate capital flight, tax evasion, and illicit finance.
The IMF stressed that the government must urgently strengthen its oversight of virtual assets and build capacity among regulators to track crypto transactions, especially given Nigeria’s growing use of digital platforms for payments and investments.
The timing of the EFCC’s findings suggests that the risk is no longer hypothetical. As both the IMF and Nigeria’s top anti-corruption agency raise alarm, the need for coordinated regulatory and enforcement action is believed to have become more pressing.
Crypto Is Not the Villain — But the Misuse Is
Olukoyede clarified that cryptocurrency itself is not inherently criminal. Rather, the issue lies in how it is used.
“Virtual assets are not fundamentally criminal. It is when they are wrongfully or fraudulently used that they become criminal,” he said. “Technology is moving at a supersonic speed around the world. As with every progressive innovation, fraudsters usually evolve ways of perverting their genuine purposes.”
He added that while cryptocurrencies were originally designed to improve financial access and serve as a store of value, they are now being exploited for illicit enrichment by individuals who understand that tracking digital assets can be more challenging for traditional enforcement agencies.
The EFCC Chairman noted that the agency is not sitting idly. According to him, the Commission has taken proactive steps, including advanced training of personnel and the deployment of sophisticated technology to trace and disrupt fraudulent activities involving virtual assets.
Olukoyede pointed to the successful investigation and prosecution of the CBEX crypto investment scam, in which thousands of Nigerians lost money, as an example of the agency’s growing capacity to crack down on crypto-related fraud.
“We are all aware of the hues and cries of many investors in CBEX that lost their funds to the shenanigans of the operators.?This unfortunate situation is preventable,’ he said.
The Public’s Role in Enabling Scams
The EFCC boss also took a swipe at the public’s role in sustaining fraudulent schemes, blaming negligence, poor due diligence, and the rush for high returns as key enablers.
“The lessons derivable from the CBEX situation are very clear: the investing public does inadvertently aid fraudulent practices through lack of due diligence on schemes advertised to them,” he said.
He added that Ponzi schemes and deceptive crypto platforms continue to flourish because people fall for unrealistic returns, refusing to verify the legitimacy of the operators. This, he said, helps fuel the cycle of fraud and financial loss.
“Another lesson is that investors hardly send suspicious transaction reports to the EFCC until they are defrauded. We must understand that no investment scam can succeed without the negligence of investors.”
Olukoyede also noted that investment fraud and virtual asset scams are now spreading like wildfire across Africa, with criminals exploiting both the desperation of investors and regulatory gaps in many countries.
As both the IMF and EFCC amplify warnings about the dangers of unregulated virtual assets, the Nigerian government has come under renewed pressure to strengthen digital financial regulations.