Court seizes $222,000 in crypto from cybercrime group linked to Chinese nationals

A Nigerian court has ordered the final forfeiture of over $222,000 in cryptocurrency linked to a suspected cybercrime syndicate involving Chinese nationals.

The ruling was handed down on Monday at the Federal High Court in Ikoyi, Lagos, bringing a major chapter to the multi-national fraud case. Justice Alexander Owoeye approved the seizure after reviewing evidence filed by the Economic and Financial Crimes Commission (EFCC).

Investigators say the $222,729.86 in USDT (a stablecoin cryptocurrency) was part of the proceeds from wide-ranging investment and romance scams. These operations, authorities allege, targeted victims online and laundered money through crypto channels and Nigerian bank accounts.

The suspects were part of a group of 792 people,  including dozens of foreign nationals, who were arrested during a large raid codenamed “Eagle Flush Operation” on December 10, 2024, in Victoria Island, Lagos which was cited in a  report by Daily Tech Nigeria. Police stormed a building where the syndicate ran its tech operations.

According to court documents, the group funneled money through Genting International Co. Limited, a Nigerian-registered firm. The company’s Union Bank account reportedly received suspicious inflows of more than ₦2.2billion in just eight months. Two crypto vendors, Chukwuemeka Okeke and Alhassan Aminu Garba, confirmed to the EFCC that they received around $2.38million in Tether (USDT) from the syndicate.

EFCC lawyer Zeenat Atiku told the court that the seized digital assets were tools for computer fraud and money laundering. Justice Owoeye, in his decision, said he was satisfied with the evidence:

“I have read the motion and attachments and found sufficient merit in the application. Consequently, the motion succeeds and is hereby granted.”

The crypto forfeiture is the latest in a series of court actions. Just last week, another Federal High Court in Lagos ordered the deportation of nine Chinese nationals convicted of cyber-terrorism and internet fraud. The suspects had pleaded guilty and are being repatriated, with all confiscated items forfeited to the Nigerian government.

The EFCC says it will continue to clamp down on internet fraud and money laundering, and experts believe rulings like this will make it tougher for scammers to hide behind cryptocurrency.