EFCC Uncovers Public Funds Diverted into Crypto Wallets, Defends Interim Account Freezes

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Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC), has revealed a sophisticated money-laundering scheme where public funds allocated to a local government were funneled into private company accounts before being converted into cryptocurrency wallets.

The Chairman of the EFCC, Ola Olukoyede, made the revelation on Monday during a briefing with media executives and senior journalists in Abuja.

Addressing growing public backlash over the commission’s proactive account freezing tactics, Olukoyede argued that law enforcement must act quickly to halt illicit financial flows before funds disappear into digital assets beyond recovery.

EFCC Boss Defends 72-Hour Freeze Action

Olukoyede detailed how the commission’s specialized Fraud Risk Assessment and Control Department flagged the anomalous transactions during routine oversight. Agents stepped in immediately, placing an interim 72-hour freeze on the targeted accounts to map out the final destination of the cash.

The EFCC chief pushed back aggressively against critics who have condemned the agency’s operational interventions.

“When we see money moving suspiciously, we move in and freeze it in the interim,” Olukoyede told media executives. “I know some of you are calling for my head.

The account was frozen for 72 hours. Okay, come and show where this money is going. Why are you moving money?”

“We saw money being moved from the local government account to a company. Apart from that phase, we discovered that the money has gone into cryptocurrency wallets,” he added. “Is that the road to build? Is that the power to generate cryptocurrency wallets for your people? Are you asking me to close my eyes and not do something like that? Then you don’t need me in this office.”

Olukoyede argued that the incident underscores the urgent need for anti-corruption agencies to shift from post-crime investigation to active financial prevention before state funds are permanently drained.

Context Amid Backlash

Although Olukoyede declined to identify the specific local government, private enterprise, or state involved, his comments come on the heels of intense public scrutinies over the agency’s actions.

The revelation follows widespread political debate earlier in August after the EFCC froze an account belonging to the Osun State Government just days ahead of the state’s August 15 governorship election. While the timing of his remarks drew comparisons to the recent political fallout, the EFCC chairman refrained from directly connecting the cryptocurrency scheme to Osun State or any other specific subnational entity.