EFCC raises alarm over corrupt politicians hiding illicit funds in cryptocurrencies

Summary

• EFCC warns of rising use of crypto wallets by politicians to conceal stolen public wealth
• Chairman Olukoyede cites anonymity and decentralisation as key enablers of crypto abuse
• Agency partners with CBN and SEC to track digital assets, calls for public vigilance

Abuja, Nigeria – The Economic and Financial Crimes Commission (EFCC) has expressed growing concern over the use of cryptocurrencies by corrupt Nigerian politicians to stash illicit funds and evade detection.

EFCC Chairman Ola Olukoyede raised the alarm during events held to commemorate Africa Anti-Corruption Day on 10 and 11 July 2025, highlighting how digital assets are increasingly being used to frustrate anti-corruption efforts.

According to Olukoyede, the pseudonymous nature of cryptocurrencies allows fraudulent public officials to bypass conventional banking systems and hide stolen wealth in blockchain-based wallets and platforms. “Virtual assets now serve as safe havens for looted funds,” he said, warning that the trend poses significant investigative challenges.

The EFCC also spotlighted a surge in crypto-enabled scams, citing the CBEX Ponzi scheme that reportedly defrauded Nigerians of over ₦1.3 trillion. The agency blamed both lax investor behaviour and limited regulation for the scheme’s success.

In response, the EFCC has ramped up digital forensics and is working with regulatory bodies such as the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC). Plans are reportedly underway to develop a National Virtual Asset Wallet to securely manage seized cryptocurrencies.

Olukoyede called on the public to exercise greater scrutiny, urging citizens to report suspicious transactions and avoid too-good-to-be-true investment offers. He clarified that while digital assets themselves are not illegal, their misuse by criminal actors makes them a growing risk to national financial security.

The EFCC’s statements come in the context of the recently enacted Investment and Securities Act 2025, which provides a legal framework for regulating digital assets in Nigeria. The SEC has also launched oversight measures, including licensing requirements and incubation schemes for crypto-based platforms.

The warning adds to global anxieties about the role of virtual currencies in facilitating illicit financial flows and comes as the Nigerian government grapples with balancing innovation and financial accountability.