Court Orders Forfeiture Of $222,729 In Digital Assets Linked To Fraud

Justice Alexander Owoeye of the Federal High Court in Lagos has ordered the temporary forfeiture of some digital assets valued at $222,729.86, which the Economic and Financial Crimes Commission (EFCC) claimed are linked to fraudulent activities.

Justice Owoeye granted the order after listening to an ex-parte application moved by the EFCC counsel Zeenat Atiku, urging the court to freeze the assets.

Atiku told the judge that the application is brought in under Section 44 (2)(B) of the 1999 Constitution (as amended) and Section 17 of the Advanced Fee Fraud and Other Fraud-Related Offences Act No. 14, 2016.

In its ruling, the court also instructed the EFCC to publish the interim forfeiture order in a national newspaper so that anyone interested in the assets could appear before the court within 14 days to contest the permanent forfeiture of the assets to the Federal Government.

The order states, “An interim forfeiture order of this Honourable Court forfeiting to the Federal Government of Nigeria the digital assets listed in the schedule hereunder, which proceeds are traced and reasonably suspected to be proceeds of unlawful activities.”

In a seven-paragraph affidavit filed supporting the application and sworn to by an investigator with the anti-graft agency, Owolabi Taiwo, the EFCC averred that it received intelligence about a large-scale fraud operation involving foreign nationals based in Lagos.

The Commission also claimed that subsequent undercover operations resulted in the arrest of 792 suspected cybercriminals and the seizure of approximately 1,000 routers, SIM cards, computers, and mobile phones.

The anti-graft agency also maintained that further investigations revealed that these suspects were part of a syndicate involved in cryptocurrency investment fraud and dating scams. This syndicate financed its operations through Genting International Co. Limited (GICL), a Nigerian-registered company.

It further stated that the company’s Union Bank account received over N2.26 billion from April to December 2024.

The EFCC claimed, “Bank statements showed that the primary inflows into the account came from cryptocurrency vendors Chukwuemeka Okeke (CO) and Alhassan Aminu Garba (AA), who provided statements under caution.

“They reported receiving USD 2.39 million from the syndicate through peer-to-peer trading. Further blockchain analysis traced these funds to wallet addresses linked to fraudulent schemes, including Conti. VIP.”

“The investigation also revealed that GICL, established by foreign nationals, was used to launder the proceeds of fraudulent activities. These individuals, operating without valid work permits, are violating Nigerian laws.