Economic and Financial Crimes Commission (EFCC) said its operatives have uncovered how public funds were allegedly moved from a local government account to a private company and subsequently transferred into cryptocurrency wallets.
EFCC Chairman, Ola Olukoyede, disclosed this on Monday while addressing media executives and journalists in Abuja, saying the suspicious transactions were detected by the commission’s Fraud Risk Assessment and Control Department.
Olukoyede said the commission intervened by freezing the account for 72 hours to establish the destination and purpose of the funds. He, however, did not disclose the local government, private company or state involved in the transaction.
The EFCC boss said the commission could not ignore the movement of the funds because of the suspicious pattern of the transactions, despite criticisms against the agency over its decision to freeze accounts.
He said, “When we see money moving suspiciously, we move in and freeze it in the interim. I know some of you are calling for my head. The account was frozen for 72 hours. Okay, come and show where this money is going? Why are you moving money?
“We saw money being moved from the local government account to a company. Apart from that phase, we discovered that the money has gone into cryptocurrency wallets.
“Is that the road to build? Is that the power to generate cryptocurrency wallets for your people? Are you asking me to close my eyes and not do something like that? Then you don’t need me in this office.”
Olukoyede stressed that law enforcement agencies must move away from the traditional approach of waiting until public funds were stolen before taking action.
He said the EFCC was increasingly adopting preventive measures by identifying suspicious transactions and stopping them before the funds could be completely moved or concealed.
“Why must we be waiting for money to be stolen? Why can’t we change the narrative? And that’s the main thing we need to bring to the office,” he said.
The disclosure came against the backdrop of the controversy earlier in August following the freezing of an account belonging to the Osun State Government, shortly before the August 15 governorship election. However, Olukoyede did not link the transaction he disclosed to Osun State or to any particular state government.
Public Officials Using Youths To Move Funds
The EFCC chairman also raised concerns over the changing nature of financial crimes in Nigeria, particularly the use of cryptocurrency to conceal and transfer proceeds of alleged corruption.
He said cybercrime had gone beyond the traditional perception of “Yahoo Yahoo,” explaining that some young Nigerians were allegedly being used as fronts by public officials to move illicit funds through cryptocurrency wallets.
According to him, some directors currently under investigation by the commission had allegedly avoided holding tangible assets in their names and instead transferred funds to young people who opened cryptocurrency wallets.
He said, “We have gotten to a stage in Nigeria now that public officials steal money and they put it in cryptocurrency wallets. Most of the directors we are investigating now, you can’t trace tangible assets to them. They steal this money, give it to students, give it to young people. They open cryptocurrency wallets all over the world. They plunder the money there within 24 hours.”
Olukoyede said the funds were subsequently moved abroad and used to acquire properties and luxury goods.
“The money moves abroad. They buy a house anywhere in the world, buy luxury items. Those are the recent trends,” he added.
He therefore urged Nigerians to have a broader understanding of cybercrime and cooperate with law enforcement agencies in tackling the emerging methods of financial crime.
“When we are talking about cybercrime, please cooperate with us, understand the scope. Not just Yahoo. Some of the people you are calling Yahoo, see your young children; they are stealing on behalf of London, on behalf of public servants,” he said.
The EFCC boss disclosed that the commission had developed the technological capacity to trace cryptocurrency wallets, particularly those connected to virtual asset platforms registered in Nigeria.
He said approximately 40 virtual asset platforms had been licensed following regulatory measures introduced to improve oversight of the sector.
“Now we also have the capacity to trace cryptocurrency wallets now, at least with those that are registered in Nigeria, and we are doing that,” Olukoyede said.
He explained that the growing use of cryptocurrency in financial crimes required law enforcement agencies and financial institutions to continually improve their technological capabilities.
Olukoyede further disclosed that the Federal Government had approved the establishment of a national confiscation wallet where virtual assets recovered by law enforcement agencies would be kept.
According to him, the EFCC had recovered virtual assets linked to the CBEX fraud but faced challenges concerning the proper management and accountability of confiscated cryptocurrency.
He said, “When you recover virtual assets, where do you put them? No accountability. That’s why we can’t continue like this.”
He added, “Today, now we have a national confiscation wallet. So if I confiscate virtual assets now, it’s a national wallet that we put into those.”
The EFCC chairman also disclosed that the commission’s anti-corruption activities had contributed significantly to revenue mobilisation, with approximately N288.1bn recovered in federal and state taxes during the period under review.
He said about N173.2bn represented federal tax recoveries, while N114.9bn was attributed to State Internal Revenue Services.
Olukoyede also revealed that more than 40 EFCC personnel had been dismissed for alleged corruption and financial malpractice in the past two and a half to three years.
He said some of the dismissed officers were already facing prosecution, while case files involving others were being prepared for prosecution.
The EFCC chairman maintained that the commission would continue to strengthen its preventive approach to financial crimes, particularly as criminals increasingly exploit digital assets and cryptocurrency platforms to conceal and move illicit funds.
