The Federal High Court in Ikoyi, Lagos, has issued an interim forfeiture order for digital wallet assets totaling $222,729.86, directing that the funds be handed over to the Federal Government of Nigeria. The ruling was delivered on Monday by Justice A. Owoeye following an ex parte application brought forward by the Economic and Financial Crimes Commission (EFCC).
EFCC Targets Cryptocurrency Fraud Syndicate
The EFCC, represented by its legal counsel Zeenat Atiku, pursued the forfeiture based on provisions in Section 44 (2)(b) of the 1999 Constitution and Section 17 of the Advance Fee Fraud and Other Fraud Related Offences Act, 2006. The assets were allegedly recovered from a syndicate of 792 suspects involved in cryptocurrency investment scams and romance fraud schemes.
According to the EFCC, the suspects were apprehended during a raid conducted on December 10, 2024, at 7 Oyin Jolayemi Street, located in Victoria Island, Lagos. Intelligence reports revealed that the fraudulent network, which reportedly included foreign nationals, operated under the company name Genting International Co. Limited (GICL).
Proceeds of Unlawful Activities, Says EFCC
While presenting the case, Atiku argued that the digital wallet funds were “reasonably suspected to be proceeds of unlawful activities,” linking them directly to fraudulent schemes targeting unsuspecting victims through fake cryptocurrency investments and online romance scams.
After reviewing the EFCC’s submission, Justice Owoeye granted the interim forfeiture request and instructed the anti-corruption agency to publish the court order in a widely circulated national newspaper. This publication will serve to notify any individuals or entities with a claim to the seized assets, giving them the opportunity to contest the forfeiture in court.
14-Day Window for Legal Challenges
The court stipulated that interested parties have 14 days from the date of publication to appear and present their case, should they wish to challenge the forfeiture. Failure to do so may result in the court granting a final forfeiture order in favor of the government.
The matter has been adjourned until March 7, 2025, when the court will reconvene to review a compliance report from the EFCC and determine the next steps regarding the seized assets.
This case highlights the increasing focus of Nigerian authorities on combating cybercrime and financial fraud, particularly within the rapidly growing cryptocurrency space, where regulatory oversight remains a challenge globally.
