The Nigerian Security and Civil Defence Corps (NSCDC) has arrested a suspected operator of a fake cryptocurrency investment platform, Polyfarm, over allegations of large-scale fraud targeting Nigerian investors.
The arrest and handover of the suspect were disclosed by the Economic and Financial Crimes Commission (EFCC) in a statement released on Friday.
According to the anti-graft agency, preliminary investigations show that the suspect allegedly created and ran a fraudulent crypto investment scheme that promised unrealistic returns and deceived members of the public.
The EFCC said the suspect, identified as Bamu Gift Wandji, was luring unsuspecting Nigerians into the scheme by presenting Polyfarm as a legitimate cryptocurrency investment opportunity.
What the EFCC is saying
The Commission said its investigation revealed that Polyfarm was falsely presented as a crypto investment platform linked to Polygon, a well-known blockchain network, in order to gain public trust.
“Investigation further revealed that he also deceived the public that his project, Polyfarm, has its native token called ‘Polyfarm coin’ which he sold to the public,” the Commission said.
- According to the Commission, in his bid to promote the fraudulent scheme, the suspect had promoted the scheme on social media platforms including WhatsApp, X (formerly Twitter) and Telegram.
- He also conducted seminars in some major cities in Nigeria, including Kaduna, Lagos, Port harcourt and Abuja, where he described the scheme as a life -changing program.
False hacking claim and regulatory breaches
According to the EFCC, problems began for subscribers around October 2025 when many investors reportedly lost access to their funds on the Polyfarm platform.
At the time, the suspect allegedly claimed the platform had been hacked by the Lazarus Group, a notorious cybercrime syndicate linked to North Korea.
EFCC investigations, however, found no evidence that Polyfarm was ever hacked or compromised.
“Our findings indicate that the suspect personally withdrew investors’ funds and diverted the money for personal use,” the EFCC said.
- The Commission further disclosed that Polyfarm was neither registered nor licensed by the Securities and Exchange Commission (SEC) to carry out cryptocurrency or investment-related activities in Nigeria.
- Investigators also found that no real crypto investments were made with subscribers’ funds, as money from new participants was allegedly used to pay earlier investors, a structure typical of Ponzi-style schemes.
- The EFCC said further checks showed that the so-called Polyfarm coin was never listed on CoinMarketCap or any recognised crypto asset tracking platform.
The Commission added that Wandji will be charged in court upon the conclusion of ongoing investigations.
Flashback
The Securities and Exchange Commission (SEC) has consistently warned Nigerians against investing in platforms that are not registered or regulated by the Commission.
Over the years, several platforms operating in a similar manner to Polyfarm have been flagged as Ponzi schemes.
Earlier this month, the SEC issued a public alert on an online investment platform known as Tunbosayo Okekunle Strategic Alpha Fund (TOSAF) over suspected fraudulent activities.
The Commission said TOSAF presented itself on its website and social media platforms as an investment outfit offering stock options and other financial instruments, despite regulatory concerns.
What you should know
The arrest comes amid intensified efforts by regulators and law enforcement agencies to combat investment fraud in Nigeria.
Earlier this month, the SEC formally engaged the Nigeria Police Force (NPF) in a coordinated national drive against Ponzi schemes, illegal investment operations and cryptocurrency-related fraud.
- The collaboration was unveiled in Abuja during a strategic meeting between the SEC Director General, Dr Emomotimi Agama, and the Inspector General of Police, Kayode Egbetokun.
- The engagement aims to establish a joint task force and strengthen cyber collaboration between both institutions.
- The objective is to close enforcement gaps, improve intelligence sharing and enhance investor protection nationwide.
