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Nigeria’s Economic and Financial Crimes Commission is calling for the suspension and prosecution of banks and fintech firms that enable cryptocurrency fraud, after investigators uncovered ₦162 billion ($97 million) in fraudulent digital asset transactions processed through a single unnamed bank.
The agency disclosed that one customer at the institution operated 960 accounts used exclusively for scam operations, prompting demands for stricter enforcement of anti-money laundering compliance across Nigeria’s financial sector.
“The compromise we are seeing has resulted in massive losses for ordinary Nigerians,” Uwujaren said. “Investigations by the EFCC have uncovered widespread fraud facilitated by institutions that failed to carry out basic due diligence.”
Uwujaren disclosed that the commission has so far uncovered more than ₦18.7 billion linked to investment fraud, alongside ₦162 billion traced to fraudulent digital asset transactions. Much of this, he said, was connected to crypto scams that exploited gaps in banking oversight.
In a particularly troubling revelation, the EFCC accused one unnamed new-generation bank, six fintech companies, and several microfinance banks of helping fraudsters launder illicit proceeds. These institutions, Uwujaren noted, failed to apply mandatory checks despite handling unusually large and suspicious transactions.
“It is worrisome that cryptocurrency transactions amounting to ₦162 billion passed through a new-generation bank without any due diligence,” he said. “Our investigations also revealed that a single customer operated 960 accounts within the same bank, all of which were used for fraudulent activities.”
Such practices, according to the EFCC, allowed crypto scams to scale rapidly, making recovery efforts more complex once funds were converted into digital assets and moved offshore.
The EFCC is now urging regulators to tighten enforcement of Know Your Customer (KYC), Customer Due Diligence (CDD), and Suspicious Transaction Report (STR) requirements across the financial sector. Uwujaren stressed that these safeguards are critical to preventing crypto scams from using banks as conduits.
“Once the money passes through the banking system, fraudsters quickly convert it into digital assets and move it to safe destinations,” he explained. “This is why strict compliance is non-negotiable.”
He added that any deposit money bank, fintech, or microfinance institution found complicit in enabling crypto scams should face immediate suspension and be referred to the EFCC for full investigation and possible prosecution.
Uwujaren also shed light on specific cases illustrating how sophisticated crypto scams have become. One involved an airline discount scheme designed to lure victims, particularly foreign travelers.
According to the EFCC, scammers advertised heavily discounted flight tickets, complete with payment portals that appeared to belong to legitimate international airlines.
“The payment module convinces victims that they are paying the airline directly,” Uwujaren said. “But once payment is made, the victim’s entire bank balance is wiped out.”
More than 700 victims reportedly fell for the scheme, with total losses estimated at ₦651 million. While the EFCC has managed to recover part of the stolen funds, Uwujaren warned that crypto scams of this nature continue to evolve.
In another ongoing investigation, the EFCC revealed that over 200,000 Nigerians were defrauded through coordinated crypto scams disguised as investment opportunities. The perpetrators allegedly operated through nine companies, raking in more than ₦18 billion.
Uwujaren said the firms promoted fake investment packages that encouraged participants to recruit others for higher returns, a structure commonly associated with Ponzi-style crypto scams. Some of the suspects are foreign nationals, while three Nigerian accomplices have already been arrested and charged in court.
He also named Fred and Farid Investment Limited as one of the entities allegedly used to lure victims into bogus schemes, reinforcing concerns about corporate fronts being used to legitimize crypto scams.
Industry analysts say the EFCC’s stance could mark a turning point in Nigeria’s fight against crypto scams, especially as digital assets gain wider adoption. By targeting financial intermediaries, regulators hope to cut off the infrastructure that enables fraud at scale.
Uwujaren urged Nigerians to remain vigilant and to verify any investment opportunity promising unusually high returns. “Fraudsters are becoming more sophisticated, but so are our investigations,” he said.
As Nigeria tightens oversight of digital finance, the EFCC’s message is clear: institutions that turn a blind eye to crypto scams may soon find themselves on the wrong side of the law.
