The Economic and Financial Crimes Commission (EFCC) has raised concerns that corrupt Nigerian politicians are using cryptocurrency wallets to launder stolen public funds and evade detection.
EFCC Chairman Ola Olukoyede revealed this trend at an event commemorating Africa Anti-Corruption Day, stating that the agency has uncovered a growing number of cases where politicians use crypto currencies to stash illicit wealth.
Olukoyede warned that virtual asset fraud is on the rise, with politicians exploiting cryptocurrencies to hide stolen funds and conduct illicit transactions.
The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have established a joint committee to regulate the virtual asset space, including stricter Know Your Customer (KYC) processes and anti-money laundering/combating the financing of terrorism (AML-CFT) obligations.
The CBN is working with the EFCC to create a National Virtual Asset Wallet to warehouse seized digital assets.
Experts emphasize the need for public awareness campaigns to prevent investment scams and Ponzi schemes disguised as cryptocurrency investments.
An anti-fraud expert, Kaina Garba, highlighted the risks associated with digital finance, including Ponzi schemes, fake initial coin offerings, and phishing attacks on crypto wallets.
A professor of Criminology, Olufayo Tade, stressed the importance of awareness and vigilance in preventing virtual asset fraud, advising people to be cautious of investment opportunities that seem too good to be true.
