Nigeria’s anti-corruption agency has apprehended 792 individuals during a raid on a building in the nation’s largest city. The building is suspected to be a central hub for an extensive crypto-based romance scam network.
The individuals detained on December 10 in Lagos comprised 148 Chinese nationals and 40 Filipinos, according to Wilson Uwujaren, a spokesperson for the Economic and Financial Crimes Commission (EFCC), who shared the information with Reuters.
“Nigerian accomplices were recruited by the foreign kingpins to prospect for victims online through phishing, targeting mostly Americans, Canadians, Mexicans, and several others from European countries,” Uwujaren said.
Scamming Pattern & Operations
Uwujaren further revealed that the arrested individuals operated within a network of fraudulent companies. They used social media, fake websites, and WhatsApp groups to attract unsuspecting investors. These platforms often promised guaranteed profits with minimal risk, a hallmark of classic Ponzi schemes.
“Staff there would make contact with people through social media and messaging platforms, including WhatsApp and Instagram, then seduce them online or offer them apparently lucrative investment opportunities,” Uwujaren added.
The EFCC spokesperson also noted that after the Nigerians gained the trust of potential victims, the foreign nationals stepped in to carry out the fraud itself. Once the victims were convinced, they were coerced into sending money for fraudulent crypto schemes and other fictitious projects.
As such, Uwujaren stated that the Commission was working with international partners and would investigate possible connections to organized crime. During the raid, agents confiscated computers, mobile phones, and vehicles.
Nigeria has long been a leader in crypto adoption in Africa, with many Nigerians turning to digital assets as an alternative to traditional banking systems. However, the rise of scams has cast a shadow over the growing crypto industry, causing many individuals to fall victim to illicit practices.
The country’s recent crackdown highlights the urgent need for greater awareness and regulation in the crypto space. While crypto-assets continue to provide opportunities for financial growth and innovation, the dangers of fraud remain a significant challenge.
A Prison Sentence
Nigeria is not the only country to find individuals involved in illegal activities. For instance, Juan Tacuri, a senior promoter of the Forcount (Weltsys) Ponzi scheme, was sentenced to 20 years in prison for his involvement in the fraudulent act that reaped millions of dollars from thousands of investors.
According to the court statements, Tacuri and his allies presented Forcount to investors as a crypto mining and trading firm that allowed investors to buy crypto investment products and receive daily returns on their purchases.
