The Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has raised serious concerns over a growing trend in which corrupt Nigerian politicians are using cryptocurrencies to conceal stolen public funds. This revelation emerged during a public lecture held on Thursday, July 11, 2025, at the EFCC headquarters in Abuja, as part of activities marking the 2025 African Union Anti-Corruption Day.

Olukoyede said the agency’s investigations had exposed multiple instances where politically exposed persons were exploiting blockchain technology and digital wallets to store illicit wealth far from the reach of traditional financial institutions and regulatory oversight.

“Our findings show that some fraudulent politicians are already devising advanced schemes to hide their stolen funds in cryptocurrencies to evade detection,” Olukoyede disclosed.

Digital Currencies Becoming a New Frontline in the Fight Against Corruption

According to the EFCC chief, the use of cryptocurrency is increasingly becoming a preferred method among criminally inclined politicians who seek to mask the origins of their wealth and avoid scrutiny from anti-corruption agencies. By leveraging the anonymity and decentralization offered by digital currencies like Bitcoin and Ethereum, these individuals are allegedly warehousing massive amounts of looted public funds in encrypted wallets.

“These illicit funds are no longer sitting idle in local or foreign bank accounts. They are being converted into digital assets, hidden in blockchain wallets, and used for anonymous transactions,” he explained.

Olukoyede noted that such methods have not only complicated the fight against public sector corruption but have also contributed to the increasing cases of virtual asset fraud and investment scams in Nigeria. He stressed that these developments represent an alarming trend that could undermine the integrity of Nigeria’s financial systems if not properly tackled.

Cryptocurrency Not Inherently Criminal – But Abused by Criminals

While expressing concern over the misuse of cryptocurrency, Olukoyede clarified that virtual assets themselves are not the problem. Instead, he explained, the challenge lies in how these technologies are exploited by fraudsters and corrupt officials.

“Cryptocurrencies were not created for fraud. They are innovations born from the Digital Age and are being used responsibly in many parts of the world. But like every other technological breakthrough, criminals have found ways to pervert its original purpose,” he said.

He described cryptocurrencies as a modern response to the age-old concept of money as a store of value, noting that their decentralization and encryption make them particularly appealing to those seeking to launder funds under the radar.

EFCC Steps Up Its Digital Surveillance Capabilities

Olukoyede reassured the public that the EFCC has not been caught off guard by the changing tactics of economic criminals. He said the Commission has intensified its focus on digital finance and has been proactive in training its personnel, gathering intelligence, and deploying advanced tools to trace illicit cryptocurrency transactions.

“Virtual asset fraud and investment scams are not impenetrable to us,” he stated confidently. “We are ahead of the game, and we have achieved tangible success in this area—most notably with the takedown of the CBEX investment scam.”

The EFCC boss referenced the recent CBEX scandal, a major virtual investment scheme that defrauded thousands of Nigerians, to demonstrate how the agency’s efforts in digital asset monitoring are beginning to yield significant results.

Public Awareness Crucial to Combating Virtual Asset Fraud

Olukoyede emphasized that winning the fight against cryptocurrency-related corruption will require more than just law enforcement action. He called on Nigerian citizens, especially investors, to become more vigilant and responsible when engaging with digital finance products.

He urged the public to perform proper due diligence before committing funds to any investment platform and to promptly report any suspicious financial activity to the EFCC.

“We must understand that no investment fraud succeeds without some level of negligence on the part of the investor,” he said. “In many cases, people only contact the EFCC after they have been defrauded. We need to change this culture.”

Using CBEX as a case study, Olukoyede pointed out that many victims failed to critically assess the scheme’s legitimacy before investing. He argued that the absence of such caution helps fraudsters thrive.

“CBEX was a preventable tragedy. Investors were swayed by false promises and didn’t verify the authenticity of the scheme. The unfortunate result was the loss of hard-earned money,” he added.

Investment Scams Spreading Like Wildfire Across Africa

Beyond Nigeria, the EFCC Chairman noted that investment and virtual asset fraud is becoming a continental problem, with criminals exploiting the vulnerabilities of financially desperate individuals across Africa.

“From Ponzi schemes to fake crypto investment platforms, fraudsters are capitalizing on poor financial literacy and economic hardship to defraud innocent people,” he warned.

Olukoyede identified Ponzi schemes as one of the most pervasive forms of investment fraud in Nigeria today, calling for stricter regulation and widespread financial education to curtail their influence.

He also urged financial influencers, tech entrepreneurs, and media personalities to play an active role in enlightening the public about the dangers of digital fraud.

“Public education is our first line of defense. People need to be empowered with the knowledge to identify scams and report them early,” he emphasized.

EFCC to Keep Pushing Boundaries of Anti-Corruption Enforcement

In his closing remarks, Olukoyede reaffirmed the EFCC’s commitment to evolving with the times and tackling all forms of corruption, no matter how technologically sophisticated they become.

He stated that the agency will continue investing in training, intelligence-led operations, and international collaboration to combat money laundering through digital channels.

“As criminals evolve, we will evolve faster. The EFCC is determined to maintain its lead in the fight against corruption, regardless of whether the crime is committed with paper money or virtual assets,” he said.

The event concluded with renewed calls for regional cooperation, particularly through the African Union, to combat cross-border digital financial crimes that increasingly threaten economic stability in many African nations.