The Economic and Financial Crimes Commission has revealed that investigators traced public funds transferred from a local government account to a private company. After that, the money was allegedly moved into cryptocurrency wallets.
According to Punch, EFCC Chairman Ola Olukoyede disclosed the transaction while addressing media executives and journalists in Abuja. He said the commission intervened after detecting suspicious movement of the funds.
EFCC freezes suspicious transaction
Olukoyede said the commission’s Fraud Risk Assessment and Control Department identified the transaction. They temporarily froze the account for 72 hours while investigators sought to establish where the money was going.
The EFCC chairman did not disclose the local government, private company or state connected to the transaction.
“When we see money moving suspiciously, we move in and freeze it in the interim,” Olukoyede said.
He questioned why public funds meant for grassroots development would end up in cryptocurrency wallets.
The EFCC chairman argued that law enforcement agencies should not wait until suspicious funds disappear before taking action.
“Why must we be waiting for money to be stolen? Why can’t we change the narrative?” he asked.
Public officials allegedly turn to crypto
Olukoyede said cryptocurrency has increasingly become part of the methods allegedly used by some public officials to conceal stolen funds.
He claimed investigators had encountered cases in which officials transferred money to students and other young people. These recipients then opened cryptocurrency wallets on their behalf.
The funds, according to him, could then be transferred outside Nigeria and converted into properties or luxury purchases.
Olukoyede said the trend demonstrated that cybercrime had expanded far beyond the conventional perception of internet fraud. This is popularly described as “Yahoo Yahoo.”
EFCC strengthens crypto tracing
The chairman said the commission has improved its ability to trace cryptocurrency wallets. This is particularly true for wallets linked to virtual asset platforms registered in Nigeria.
He said about 40 virtual asset platforms had been licensed as regulators strengthened supervision of the sector.
Olukoyede also disclosed that the government had established a national confiscation wallet for virtual assets recovered during investigations.
He said the measure was intended to address accountability concerns over where seized cryptocurrency should be kept.
The EFCC chairman maintained that stronger technological capacity would be necessary. This is urgent as criminals increasingly use digital assets to move and conceal suspected proceeds of corruption.
