Justice Alexander Owoeye of the Federal High Court in Ikoyi, Lagos has ordered the final forfeiture of $222,729.86 in USDT (Tether cryptocurrency) recovered from suspected members of an international cybercrime syndicate, including Chinese nationals.
The order was issued on Monday, July 21, following an ex parte motion filed by the Economic and Financial Crimes Commission (EFCC).
The digital assets are part of the proceeds seized from a syndicate of 792 suspects allegedly engaged in cryptocurrency investment and romance scams. The arrests were carried out in a coordinated raid codenamed “Eagle Flush Operation” on December 10, 2024, in Lagos.
Syndicate Financed Fraud via Nigerian Front Company
According to an affidavit presented by EFCC’s investigating officer Muazu Abdulrahman, the syndicate operated through a Nigerian-registered entity known as Genting International Co. Limited (GICL). The company’s Union Bank account (No. 0225100403) reportedly received ₦2.26 billion in suspicious inflows between April and December 2024.
“An analysis of the company’s statement revealed that the bulk of deposits originated from two cryptocurrency vendors: Chukwuemeka Okeke and Alhassan Aminu Garba,” Abdulrahman stated.
Both vendors were interrogated and confirmed receiving $2.38 million in USDT from the syndicate through peer-to-peer crypto transactions, providing investigators with wallet addresses used in the transfers.
EFCC counsel Zeenat Atiku submitted that the seized crypto funds were likely instruments of computer-related fraud and money laundering, and urged the court to approve their forfeiture to the Federal Government of Nigeria.
Court Affirms Asset Seizure
Justice Owoeye, in granting the motion, stated:
“I have read the motion and attachments and found sufficient merit in the application. Consequently, the motion succeeds and is hereby granted.”
This ruling reinforces EFCC’s efforts to crack down on digital fraud and highlights growing scrutiny of the use of cryptocurrencies in illicit financial flows.
What You Should Know
- Last week, the Federal High Court, Lagos, has ordered the repatriation (deportation) of 9 Chinese nationals from Nigeria over cyber-terrorism and internet fraud offenses in the state.
- The suspects were said to have been arraigned on separate charges bordering on cyber-terrorism and internet fraud before Justice Chukwuemeka Aneke and Justice Dehinde Dipeolu, respectively. They pleaded guilty.
- In view of their pleas, the prosecution counsel, M.K. Bashir, Babatunde Sonoiki, and B. M. Isha r, prayed the court to convict the defendants and order the forfeiture of all the items recovered from them to the Federal Government of Nigeria.
