Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, has raised the alarm over a new wave of corruption tactics, revealing that crooked politicians and fraudsters are increasingly hiding stolen funds in cryptocurrencies to evade detection.

Speaking in Kaduna on Thursday at an event to mark Africa Anti-Corruption Day, Olukoyede described virtual assets fraud and dubious investment schemes as fast-emerging threats that could soon outpace traditional money laundering in Africa.

Represented by the Kaduna Acting Zonal Director of the Commission, Bawa Usman Kaltungo, the EFCC boss lamented that the continent continues to suffer staggering losses running into billions of dollars annually through illicit financial flows, with money laundering still topping the chart. However, he warned that virtual assets fraud is now rapidly taking centre stage.

“Another rising criminal engagement that has the potential to outpace even money laundering is virtual assets and investment scams,” Olukoyede told participants drawn from anti-graft agencies, financial experts and civil society.

He explained that virtual assets from cryptocurrencies to digital tokens built on blockchain are not inherently illegal. But he warned that technology’s dizzying pace has also given criminals fresh avenues to divert and conceal stolen wealth.

“Fraudulent politicians are already perfecting schemes and hiding their loot in cryptocurrencies to beat the investigative dragnets of anti-corruption agencies,” he disclosed. “Stolen funds and unexplained wealth are being warehoused in wallets, and payments for services are being routed through this channel.”

The EFCC boss further linked the boom in digital assets misuse to the surge in shady investment platforms that promise mouth-watering returns but end up defrauding unsuspecting Nigerians.

Despite these complexities, Olukoyede assured that the Commission is not daunted. “Virtual assets fraud and investment scam are not hard nuts to crack,” he said confidently. “Our proactive, broad-based training and intelligence are already exposing these schemes. We have enormous proofs of operational successes, especially our breakthrough in the investigation and prosecution of the infamous CBEX scam.”

He decried how investment fraud including Ponzi schemes is spreading like wildfire across Africa, exploiting desperate investors and deepening economic misery. “Every exploitation of investors in any guise is considered a fraudulent act,” he insisted.

Olukoyede cautioned that the public’s carelessness often aids fraudsters. “Many victims of CBEX might have avoided losses if they had done proper checks. Investors hardly file suspicious transaction reports to the EFCC until after they are defrauded,” he said. “No investment scam can succeed without the negligence of investors.”

The EFCC chairman stressed that the Commission will continue to work with all stakeholders to prevent such crimes before they take root. “Virtual assets and investment fraud, like other fraudulent activities, are preventable. The escape route is adequate knowledge and understanding of the issues involved,” he noted.

Urging participants to use the interactive session to frankly dissect these threats, he appealed to financial experts present to demystify virtual assets for the public. “The window of ignorance which fraudulent operators are exploiting to dupe innocent Nigerians must be closed,” he added.

Olukoyede ended on a hopeful note, wishing everyone fruitful deliberations as they navigate “the intricate contours of virtual assets and investment fraud,” with a shared goal of safeguarding Nigeria’s economy and restoring public trust.