Nigerian Court Seizes $222K in Crypto from Cybercrime Group Including Chinese Nationals
A Federal High Court in Lagos has ordered the permanent seizure of $222,729.86 in USDT (a type of cryptocurrency). This money was taken from suspected members of an international cybercrime group, which includes Chinese nationals.
Justice Alexander Owoeye issued this order on Monday, July 21, following a request from the Economic and Financial Crimes Commission (EFCC).
This digital money is part of the profits from a large operation where 792 suspects were arrested on December 10, 2024, in Lagos. They were allegedly involved in cryptocurrency investment scams and romance scams, uncovered during a raid called “Eagle Flush Operation.”
How the Scam Operated
According to the EFCC, this criminal group used a Nigerian company called Genting International Co. Limited (GICL) to run their illegal activities. The company’s bank account reportedly received ₦2.26 billion in suspicious payments between April and December 2024.
Investigations showed that most of these deposits came from two cryptocurrency traders, Chukwuemeka Okeke and Alhassan Aminu Garba. Both confirmed that they received $2.38 million in USDT from the syndicate through “peer-to-peer” crypto transactions (meaning direct transfers between individuals without a central exchange). They provided the digital wallet addresses used for these transfers.
The EFCC argued that the seized cryptocurrency was likely used for computer fraud and money laundering, asking the court to officially give the funds to the Nigerian government.
Court’s Decision and Broader Implications
Justice Owoeye agreed, stating that the request had enough merit and granted the seizure. This ruling demonstrates the EFCC’s strong efforts to combat digital fraud and underscores the growing focus on the use of cryptocurrencies in illicit financial activities.
Recent Related Developments
It’s worth noting that just last week, another Federal High Court in Lagos ordered the deportation of 9 Chinese nationals from Nigeria. These individuals were found guilty of cyber-terrorism and internet fraud offenses in the state. They had pleaded guilty to their charges, and the court also ordered that all items recovered from them be given to the Nigerian government.
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