Corrupt politicians now conceal loot in cryptocurrencies – EFCC

The Economic and Financial Crimes Commission (EFCC) has alleged that corrupt politicians are now hiding stolen public funds in cryptocurrencies to evade probes.

Chairman of the Commission, Mr. Ola Olukoyede, made the allegation during an AU Anti-Corruption Day event on Thursday in Ibadan.

Represented by the Commission’s Acting Zonal Director in its Ibadan office, Hajiya Hauwa Ringim, the anti-graft agency boss said that virtual assets were becoming a preferred channel for hiding illicit wealth.

Olukoyede described virtual assets as digital monetary representations that could be traded or transferred, stressing that while not criminal, they become dangerous when used fraudulently.

He also bemoaned Africa’s growing loss to illicit financial flows, listing money laundering and digital fraud schemes as major threats to the continent’s development.

According to him, the EFCC had observed an alarming increase in politicians using cryptocurrency wallets to store unexplained wealth and facilitate fraudulent investment activities.

The EFCC boss said that the agency was addressing the challenge with training and intelligence.

He further stated that the Commission’s efforts resulted in breakthroughs like the CBEX investment scam investigation as well as prosecution.

Olukoyede warned investors against negligence, saying most scams succeeded due to lack of due diligence and delayed reporting of suspicious transactions to relevant authorities.

He said that Ponzi schemes remain widespread, with desperate investors easily falling prey to enticing but fake digital investment promises.

The Commission’s chairman said that virtual assets fraud could be prevented through public awareness, proactive measures, and stakeholder engagement by anti-graft agencies as well as regulators.

Olukoyede added that understanding digital fraud was crucial, urging citizens to acquire knowledge and report shady schemes before they escalate into national scandals.