EFCC warns on cryptocurrency fraud, citing laundering by politically exposed persons, and urges regulation as SIBAN pledges ethical codes

EFCC warns on cryptocurrency fraud, stressing that politically exposed persons are increasingly exploiting digital assets for money laundering.

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Chairman of the Economic and Financial Crimes Commission, Ola Olukoyede, raised the concern on Wednesday, September 3, 2025, during a courtesy visit by the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) to the agency’s headquarters in Abuja.

Olukoyede, represented by EFCC Chief of Staff, CE Michael Nzekwe, said that the boundary between genuine cryptocurrency operators and fraudsters was becoming alarmingly thin.

“Crypto is the new oil. There’s so much money in crypto. If proper regulation is not enforced, even the genuine actors will run into big problems,” he cautioned.

The EFCC boss noted that while cryptocurrency is a key innovation in the global economy, its rapid expansion in Nigeria has made it a tool for laundering illicit funds.

He urged operators to embrace transparency, warning that “even some of the ones you say are genuine, launder money.”

Olukoyede advised blockchain players to strengthen investor education and act as whistleblowers in exposing fraud. “You can collaborate with us to stop money laundering. You can be whistleblowers,” he said.

SIBAN President, Obinna Iwuno, acknowledged the risks but emphasized the association’s commitment to ethics.

He said SIBAN had drafted a code of conduct based on international best practices to ensure compliance and protect investors.

“We want to engage with the EFCC in education, awareness creation, and anti-scam campaigns. Our ecosystem must grow with regulation, not chaos,” Iwuno stated.

He further called for a balanced approach that protects national security while allowing innovation to thrive.

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Nigeria, with Africa’s largest youth population, has one of the fastest-growing crypto markets, but experts warn that without effective oversight, the sector could be hijacked by criminals.