Latest news with #EFCC
Zawya
11-07-2025
- Business
- Zawya
EFCC warns Nigerians on rising virtual asset, investment scams
The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, has raised the alarm over the growing threat of virtual asset and investment scams across Africa, warning that fraudsters are increasingly leveraging digital technologies to exploit unsuspecting investors. The warning was delivered on Thursday through the Ilorin Zonal Director of the EFCC, Mr. Daniel Isei, during a public lecture marking the 2025 African Union Anti-Corruption Day in Ilorin. The African Anti-Corruption Day, observed annually on July 11, aims to raise awareness about the dangers of corruption and to mobilize collective action against it. This year's theme focuses on the evolving nature of financial crimes in the digital age. In his address, titled 'Understanding Virtual Assets & Investment Scams,' Olukoyede stated that Africa's fight against corruption is being undermined by a surge in illicit financial flows, with money laundering and virtual asset fraud topping the list. He explained that virtual assets, including cryptocurrencies and digital tokens, are not inherently criminal but become dangerous tools in the hands of fraudsters. 'Technology is advancing rapidly, and while virtual assets were created for legitimate financial innovation, criminals are exploiting them for money laundering and fraudulent investments,' he said. Olukoyede cited recent investigations revealing how politicians and corrupt individuals hide stolen funds in cryptocurrency wallets to evade detection. He also warned about the growing trend of fraudulent investment schemes that use virtual assets to lure desperate investors with promises of quick returns. Highlighting the infamous CBEX scam, the EFCC Chairman described it as a case study of how ignorance and negligence among investors can fuel the success of fraudulent schemes. 'The CBEX case showed how failure to conduct due diligence and report suspicious transactions on time can lead to devastating losses,' he said. 'No investment scam can succeed without the negligence of the investing public.' Despite the increasing complexity of virtual asset fraud, Olukoyede assured the public that the EFCC remains a step ahead through proactive intelligence gathering, continuous training, and operational breakthroughs. He noted that the agency has already recorded significant successes in investigating and prosecuting such crimes. He emphasized the need for public enlightenment and stakeholder collaboration to tackle the menace. 'Virtual asset and investment fraud are preventable,' Olukoyede said. 'The key is education, vigilance, and timely reporting. This interactive forum is a step in the right direction.' The EFCC Chairman also urged experts at the forum to demystify virtual assets for the benefit of ordinary Nigerians and help close the 'window of ignorance' that fraudsters exploit. In his presentation, an Assistant Chief Superintendent of the EFCC, ACE II James Allison, highlighted the growing vulnerability of Nigerians to digital investment scams and cryptocurrency-related frauds. In his lecture, titled 'Understanding Virtual Assets and Investment Fraud,' Allison explained how fraudsters are exploiting virtual assets such as cryptocurrencies, NFTs, and unregulated investment platforms to defraud unsuspecting members of the public. 'Fraudsters are increasingly taking advantage of people's lack of understanding of virtual assets. They dangle unbelievable returns on investment, create fake trading platforms, and often vanish without a trace once they secure their victims' money,' he said. Allison cited real-life cases handled by the Commission, including instances where young Nigerians lost millions of naira to Ponzi schemes disguised as crypto-trading platforms. He listed common red flags such as guaranteed high returns, pressure to invest quickly, lack of licensing or registration, and vague company information. To protect themselves, he advised members of the public to 'research thoroughly before investing, verify regulatory compliance, and never trust unsolicited offers.' He concluded with a strong caution: 'If it sounds too good to be true, it's probably a fraud.' As the event concluded, he urged participants to engage in open, fact-based discussions, emphasizing that fighting corruption and financial fraud is a shared responsibility. The event brought together stakeholders from civil society, youth groups, academia, security agencies, and the media. Discussions at the forum focused not only on emerging threats but also on the collective responsibility of citizens in building a corruption-free Nigeria.
Yahoo
10-07-2025
- Politics
- Yahoo
Posts claiming Nigerian ‘Yahoo boy' scammed Trump out of $250k are misleading
'A yahoo boy scammed a whole Donald Trump, the President of US 250,000 dollars. Some of you are really audacious', reads an X post published on July 4, 2025. 'Yahoo' is Nigerian slang for internet fraud. Shared more than 3,000 times, the post was published by an account called 'Shola', a self-proclaimed life coach with over 373,000 followers. Comments under the post suggest that some readers believe it is genuine. 'If these guys get the chance, they'll scam God,' one commenter wrote. 'Scammed a whole Donald Trump? Bro playing fraud on Hall of Fame difficulty,' added another user. The claim was also shared elsewhere on X (here and here) and on Facebook in English (here) and French (here). The Economic and Financial Crime Commission reported in May that cybercrime, advance fee fraud and money laundering accounted for the highest number of offences out of the record-breaking 4,111 total convictions by the agency in 2024 — in a country where 70% of the population is under the age of 30 (archived here and here). Several high-profile cyber-fraud cases have been linked to Nigerians outside the country. Nigerian Instagram influencer Ramon Olorunwa Abbas was handed an 11-year jail term in the United States in 2022 after being found guilty of conspiring 'to launder tens of millions of dollars through a series of online scams' (archived here). Abidemi Rufai, a politician and aide to the Ogun state governor in southwest Nigeria, was also convicted in the US for a similar crime in 2022 (archived here). He was sacked after his crime came to light. However, the claim that a Nigerian 'Yahoo boy' scammed Trump is misleading. Official records from the United States Department of Justice (DOJ) confirm that there was a $250,300 cryptocurrency scam, but Donald Trump was not the direct victim (archived here). The funds were actually fraudulently diverted from a donor intending to support the Trump-Vance Inaugural Committee, after scammers impersonated Steve Witkoff, the committee's co-chair and finance director. Prosecutors filed a complaint in a federal court that fraudsters sent emails from a domain posing as the official inaugural account. The scammers used the address@ with a lowercase 'L' replacing the 'i' in the legitimate @ to solicit over $250,000 in cryptocurrency (archived here). The victim transferred the funds, which were quickly moved across multiple cryptocurrency wallets, including a Nigeria-based Binance account linked to the name Ehiremen Aigbokhan. 'It appeared likely that Aigbokhan received an international transfer of funds from the U.S. to Nigeria as a result of his fraudulent activity,' prosecutors said in the document. The suspect allegedly used several crypto wallets and exchanges to launder the money. The FBI seized a total of 40,353 that the federal agency said was connected to the fraud, with about half taken from Aigbokhan's accounts. Digital forensics linked him to the Binance account that received part of the stolen funds. The FBI is now seeking Aigbokhan's arrest. International media, including The Independent UK and American magazine Fortune, reported on the case (archived here and here). The story was covered by multiple Nigerian newspapers, some of whose headlines may have created confusion. One titled its article "How Lagos Yahoo Boy duped U.S. President Donald Trump of 2025 inauguration funds" while another used the headline "FBI pursues Lagos Yahoo Boy for defrauding U.S. President Donald Trump of 2025 inauguration funds" before going on to explain in the text that a donor was scammed.
Zawya
03-07-2025
- Business
- Zawya
Nigeria: Alleged $1bln fraud, Court rejects CBEX operators' bail
A Federal High Court sitting in Abuja and presided over by Justice Emeka Nwite has rejected the bail application filed by three promoters of Crypto Bridge Exchange (CBEX) in the alleged $1 billion fraud. Justice Nwite, in a ruling on Monday, June 30, 2025, held that available evidence against the defendants was strong. The defendants are; Adefowora Abiodun Olanipekun, Avwerosuo Otorudo and Chukwuemeka Ehirim. According to the judge, no formal charge was filed against the defendants before they applied for bail. A formal charge was only filed against them before the hearing of their bail application and the charge was waiting for assignment to a judge. Ruling on the bail application, Justice Nwite held that, 'In view of the foregoing and taking cognisance of the nature of the case and particularly, a charge has been filed against applicants, I am of the view and I so hold that interest of justice will be met by taking this application to the court where the charge is pending for the court to take the arraignment of the applicants and hearing the bail application simultaneously. Hence, the application is refused'. Justice Nwite, had on 24 April, 2025, gave the EFCC the go-ahead to arrest and detain six operators of CBEX over their involvement in the fraud. The six suspects include Adefowora Abiodun, Adefowora Oluwanisola, Emmanuel Uko, and Seyi Oloyede, Avwerosuo Otorudo and Chukwuebuka Ehirim. He gave the order after the EFCC's counsel, Fadila Yusuf moved an ex-parte motion to the effect that their detention would be pending the conclusion of investigation of the alleged offences and possible prosecution. Several arguments were canvassed on the bail applications of the defendants. All the defence counsel in the matter sought an order varying the court's earlier order made on 24 April, which granted the EFCC leave to arrest and detain the applicants. They urged the court to vary the earlier order granting bail pending the conclusion of the investigations and possible arraignment and trial. After the arguments of the defence lawyers, the prosecution counsel vehemently opposed their bail request. She told the court that their application had been overtaken by event as a charge had already been filed against them. The lawyer argued that all the defendants in the matter are being charged for offence of obtaining over N1 billion dollars, more than some states' budgets in Nigeria. 'It is in fact more than a budget of about 10 states joined together my lord,' she said. She said the commission was still receiving petitions from victims of the alleged fraud. The lawyer said though granting bail is at the discretion of the court, this should be done judiciously and judicially, urging the court to dismiss same. In the ruling on Monday, Justice Nwite also dismissed the defence arguement that Abiodun, who is the 1st defendant, is indisposed and hence needed a medical attention. The judge held that the defence had not shown in their affidavit evidence that the EFCC cannot take the defendants to a hospital for the specialist attention.
France 24
01-07-2025
- Business
- France 24
CBEX crypto scam: AI-hyped Ponzi scheme defrauds African investors
Edwin, a Kenyan government worker who only gave his first name out of shame, first encountered CBEX on Telegram, a messaging app. He was lured with promises of guaranteed monthly returns made possible by AI-powered trading systems, with lucrative referral bonuses -- classic hallmarks of Ponzi schemes. "I had very big plans. But I was conned both by the platform and an agent who lied he could help recover my money," Edwin told AFP. When he began investing last August, there were initial returns, leading him to invest more despite lacking prior cryptocurrency trading experience. In total, he believes he lost roughly 2.1 million shillings ($16,000), mostly from a bank loan he is now worried about needing to repay. Blockchain analysis firm Chainalysis says some $9.9 billion was lost to crypto scams globally last year. Such scams are not new in Africa, but their scale and sophistication has grown as cryptocurrency spreads. CBEX collapsed in April, leaving scores of investors like Edwin ruined, mainly in Kenya and Nigeria, according to media reports. But AFP has confirmed from accessing messages on CBEX's private Telegram groups that it has since rebooted its operations despite ongoing investigations and warnings by authorities. - 'I'm broke' - Abby, another Kenyan investor, carries the guilt of introducing 25 family and friends to CBEX. "(They) invested so much, and it all disappeared," he told AFP. "I would really love to help them recover but I'm broke." In Nigeria, news of CBEX's collapse led to attacks on CBEX-affiliated offices, which have since closed. Adeoye, a Nigerian victim, lost N700,000 (about $450). "The offer was juicy," he said. "I knew it was a risk, but I thought I would be lucky to cash out before anything happened." CBEX used the "brandjacking" tactic, adopting an acronym similar to the China Beijing Equity Exchange to give it legitimacy. The platform claimed to be licensed in the US and said ST Technologies International was responsible for the AI trading signals, allowing it to operate in Nigeria under the corporate identity of ST Technologies International Ltd (Smart Treasure/Super Technology). It even obtained an anti-money laundering certificate from Nigeria's Economic and Financial Crimes Commission (EFCC) this January, though the EFCC has clarified that this was only for "consultancy services", not for currency exchanges. 'Build trust' To add further legitimacy, CBEX claimed it was established a decade ago and the ST team eight years ago. In reality, it began operations in Nigeria last July, according to local media, before spreading to Kenya. "If you check CBEX wallet addresses on-chain, they were only operating for about a year before the collapse," Kenyan cryptocurrency investigator Wycklife Sewe told AFP. While pretending to actively trade, CBEX actually moved funds out of investors' wallets via TRON (a decentralised blockchain network), said Sewe. The assets then underwent complex routing through multiple wallets and cryptocurrency conversions to obscure the audit trail. "They have designed their system using code to fool you that your money is still there and you can see it growing. But your money is moved immediately after you deposit," Sewe said, adding that CBEX was also running other scams. CBEX has changed its website domain several times to avoid attracting attention. AFP found at least four registered by it. International warnings In April 2024, the Hong Kong Securities and Futures Commission, an independent market regulator, issued a public alert against "CBEX Group". A recent investigation by crypto analyst Specter linked CBEX's withdrawal wallets to darknet marketplace Huione Guarantee, a Cambodia-based platform known for providing illicit tools to facilitate crypto crime. The US Treasury's Financial Crimes Enforcement Network (FinCEN) designated Huione Group a "primary money-laundering concern" in May, saying that it had facilitated more than $4 billion in illegal transactions between August 2021 and January 2025. Following CBEX's collapse, Kenya's Capital Markets Authority issued an "Investor Alert" about unregulated platforms, and parliament is discussing a bill to regulate virtual assets. 'Never again' Nigeria's EFCC says it has arrested two people and put out warrants for eight others in Nigeria and Kenya. A new Investments and Securities Act expressly prohibits and criminalises Ponzi schemes. But investigations are lengthy and expensive. In May, the EFCC said a "reasonable sum" of lost funds had been recovered, without stating the amount, highlighting the complexity of converting cryptocurrencies back to national currency. A Telegram spokesman told AFP that "scam content is removed when discovered and offending users banned". AFP found some CBEX Telegram groups were now labelled as scams on the platform. On June 10, CBEX, which had previously blamed hackers for the missing funds, claimed on its Telegram channels to have "compensated" the lost money. But it asked affected users to complete "verification" by paying a fee -- a common re-scamming tactic. For victims like Abby, the way forward is easy. "Never, ever again! I am done," he said. © 2025 AFP
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First Post
25-06-2025
- Politics
- First Post
Africa News Live Updates: Nigeria fines Meta $290 million for data privacy violations
June 25, 2025, 08:18:18 (IST) Whatsapp Facebook Twitter Godwin Emefiele seeks forensic exam of phone exhibit in corruption trial; EFCC objects In an ongoing corruption trial in Nigeria, former Governor of the Central Bank, Godwin Emefiele, has formally asked the court for permission to conduct an independent forensic examination of a mobile phone, according to a report in Premium Times. The request, made on Tuesday, targets a device from which the Economic and Financial Crimes Commission (EFCC) reportedly extracted WhatsApp messages that have been submitted as evidence against him. The EFCC, which is prosecuting the case, has objected to Emefiele's motion to have the exhibit analyzed by his own experts.
