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A Federal High Court in Lagos has ordered the interim forfeiture of digital assets worth $222,729.86, allegedly linked to a massive cryptocurrency fraud syndicate involving 792 suspects, including 193 foreigners and 599 Nigerians. The suspects were arrested in December 2024 during a large-scale operation by the Economic and Financial Crimes Commission (EFCC).
RELATED: EFCC arrests 792 suspects in Lagos Internet fraud crackdown
The suspects are accused of engaging in cryptocurrency investment fraud, romance scams, and money laundering. Investigations revealed that their operations were financed through a Nigerian-registered company, Genting International Co. Limited (GICL).
Court Ruling on Digital Asset Forfeiture
Justice Alexander Owoeye granted the temporary forfeiture order following an ex parte application filed by the EFCC’s legal counsel, Zeenat Atiku. The application was brought under Section 44(2)(b) of the 1999 Constitution and Section 17 of the Advance Fee Fraud Act 2006.
The court also directed the EFCC to publish the forfeiture order in a national newspaper. This will allow any interested parties to come forward within 14 days and show cause why the digital assets should not be permanently forfeited to the Federal Government of Nigeria.
The order states:
“An interim forfeiture order of this Honourable Court forfeiting to the Federal Government of Nigeria digital assets listed in the schedule hereunder, which proceeds were traced and reasonably suspected to be proceeds of unlawful activities.”
EFCC Investigation Uncovers Large-Scale Crypto Fraud
According to an affidavit filed by EFCC investigator Owolabi Taiwo, the agency received intelligence on an international fraud ring operating in Lagos, leading to a sting operation that resulted in the arrest of 792 suspects.
During the raid, the EFCC confiscated:
- 1,000 routers
- Numerous SIM cards
- Computers and mobile phones
Investigations traced substantial financial transactions linked to cryptocurrency fraud. The syndicate allegedly laundered illicit funds through Genting International Co. Limited (GICL). The company’s Union Bank account recorded inflows exceeding ₦2.26 billion between April and December 2024.
Further findings revealed that two cryptocurrency vendors, Chukwuemeka Okeke and Alhassan Aminu Garba, received over $2.39 million in USDT from the syndicate via peer-to-peer (P2P) trading. A blockchain analysis traced these funds to wallet addresses linked to fraudulent schemes, including Conti.vip.
The EFCC’s affidavit also noted that foreign nationals involved in the scheme operated without valid work permits. By this, they violated Nigerian laws on foreign business operations.
Next Court Hearing Scheduled for March 7, 2025
The court has adjourned the case to March 7, 2025, for a compliance report on the forfeiture process. If no valid claims are made within the stipulated 14-day period, the digital assets are likely to be permanently seized by the Federal Government.
