Court Orders Forfeiture of $222,729 Digital Assets Linked to Fraud
Justice Alexander Owoeye of the Federal High Court in Lagos has ordered the temporary forfeiture of digital assets valued at $222,729.86, which the Economic and Financial Crimes Commission (EFCC) claims are linked to fraudulent activities. The court issued the order following an ex-parte application presented by the EFCC’s counsel, Zeenat Atiku.
Atiku argued that the application was brought in accordance with 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. The judge granted the interim forfeiture order, which freezes the assets and directs the EFCC to publish the order in a national newspaper. This publication is intended to notify anyone with an interest in the assets and give them 14 days to contest the permanent forfeiture.
The court’s order specifies that the digital assets in question, which are suspected to be proceeds of unlawful activities, will be forfeited to the Federal Government of Nigeria. The assets are linked to a large-scale fraud operation involving foreign nationals based in Lagos.
The EFCC claims that its investigation, sparked by intelligence about the fraud operation, led to the arrest of 792 suspected cybercriminals and the seizure of thousands of fraudulent items, including routers, SIM cards, and mobile phones. The suspects were reportedly part of a syndicate engaged in cryptocurrency investment fraud and dating scams.
Further investigation revealed that the syndicate operated through Genting International Co. Limited (GICL), a Nigerian-registered company that financed its operations through significant financial transfers. The EFCC asserts that over N2.26 billion was transferred to a Union Bank account from April to December 2024, primarily from cryptocurrency vendors, Chukwuemeka Okeke and Alhassan Aminu Garba.
Bank records show that these vendors received approximately $2.39 million from the syndicate, and blockchain analysis traced these funds to wallet addresses associated with fraudulent schemes. The EFCC claims that GICL, a company run by foreign nationals, was used to launder the illicit proceeds of the fraud, and that these individuals were operating in Nigeria without valid work permits, violating Nigerian laws.
The case continues as the EFCC works to solidify the connection between these assets and the criminal activities involved.
