Nigeria’s Economic and Financial Crimes Commission (EFCC) chair, Ola Olukoyede, raised concerns about how cryptocurrencies are being used to conceal corrupt money.
At an event for African Union Anti-Corruption Day, he explained that some politicians transfer stolen public funds into crypto wallets to evade detection by investigators.
Olukoyede said, “Our findings showed that fraudulent politicians are already perfecting schemes and hiding their loot in cryptocurrencies to beat the investigative dragnets of anti-corruption agencies”.
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He added that payments for services are also being made through these channels to keep transactions off the radar.
While investment scams remain a major problem, Olukoyede stated that the involvement of public officials has made the situation worse. Cryptocurrencies allow them to transfer money quickly and across borders without leaving much of a trail.
The Central Bank of Nigeria governor, Olayemi Cardoso, also spoke at the event. He pointed out that Nigerians made over $56 billion worth of crypto transactions between July 2022 and June 2023.
He acknowledged that while the popularity of crypto is rising, it is also creating more opportunities for fraud. Figures from the central bank’s 2024 Financial Stability Report showed that fraud cases in the financial system rose by 45%. About 70% of these cases came from digital platforms, including cryptocurrency exchanges.
Nigerian regulators have already identified over 30 Ponzi schemes involving cryptocurrencies.
Meanwhile, New Zealand recently banned crypto ATMs nationwide and limited overseas cash transfers. Why? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
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