The EFCC has become more intentional about spreading a positive narrative behind their activities as more Nigerian youths now rely on cryptocurrencies for their livelihood.
The Economic and Financial Crimes Commission (EFCC) has revealed on a Twitter space that there is no law stamping cryptocurrency trading in Nigeria as illegal. The one-hour meeting held on August 17 seemed to be a topic of interest for Nigerian youths as it attracted almost 70,000 listeners.
The main speaker on the space and Chief Superintendent Cybercrime Section of EFCC, CSE Daniel Azuka Nwaka, said many Nigerians trade cryptocurrency through the pair-to-pair method and have not been apprehended by the authority for this reason.
In February 2021, the Central Bank of Nigeria (CBN) issued a memo directing all banks to restrict accounts dealing in cryptocurrency. This was done to mitigate money laundering and other related crimes; they assured Nigerians. Although statistics suggest that crypto-related crimes only account for a small fraction of all financial crimes. Many Nigerian youths share the sentiment that EFCC’s investigations are just a witch haunting exercise targeted at Nigerian youths who are fraudsters.
Mr. Nwaka mentioned that Nigerians are allowed to trade cryptocurrency, but there is a threshold of 5 Million naira for transactions involving individuals and 10 million for organizations. And as long as you maintain your crypto trading transactions within this limit, you are not against the law.
What Other Illegalities exist in Crypto trading apart from the Threshold limit conferred?
The EFCC operative further mentioned that cryptocurrency is connected to many crimes like Ransome kidnapping, money laundering, and terrorism.
“Kidnappers ask for cash or cryptocurrency because they know the banks cannot trace them. They change their monies into cryptocurrencies and move about with them, travel abroad with them since it is not traceable, and they can go wherever and launder the said money.”, he added.
He further stated that CBN tried to mitigate these crimes by directing all banks not to deal with accounts that trade cryptocurrencies.
He also cautioned Nigerians against believing any source that establishes any cryptocurrency as a legal tender. He said until it is established as a legal tender by the Nigeria’s Apex Bank, cryptocurrencies remain uncharted territory.
How Rampant do people report cases of Cryptocurrency Fraud
According to him, the level of complaints they get from fraudulent crypto transactions is staggering primarily because of the knowledge cap.
“When cryptocurrency came into the limelight in Nigeria, most people saw it as a get-rich-quick scheme. A lot of people did not do their investigation before delving into crypto. Mr. Nwaka added that they threw caution to the wind despite the rife cryptocurrency scams”.
He said these people invest in hopes of getting high returns on their money within a short period. After failing to recoup their investment from these schemes, they return to the EFCC complaining that they have been defrauded.
How Does the EFCC keep track of Cryptocurrency fraud?
He highlighted that the government does not keep track of cryptocurrency accounts.
He mentioned that since the cryptocurrency is anonymous, EFCC keeps a tab on these accounts by partnering with other local and foreign security agencies to track and get these people, which is how they keep these fraudsters in check.
What is the role of Prosecutions in curbing the actions of Cryptocurrency Fraudsters?
The Chief Superintendent Cybercrime Section of EFCC stated that prosecutions deter fraudsters and would-be fraudsters.
“We have had many cryptocurrency-related persecutions and gotten cryptocurrencies returned to their original owners and published on the EFCC websites,” he mentioned.”
How Satisfied are people when they come to EFCC with their complaints?
“Compared to the everyday investigation, cryptocurrency investigation is more rigorous. Anybody can have a crypto wallet since they don’t require information from you to start transacting with it.” The EFCC official said.
“Going after these people is unlike your conventional banking system, where you can get account opening details and statements. People must understand that EFCC is safeguarding them from scams despite the anonymous nature of cryptocurrencies.” He further explained.
How Enlightened are EFCC Agents on the Subject of Cryptocurrency
To tackle this issue, the EFCC organized a four-day training on cryptocurrency and forensic auditing, where their operatives were trained on how best to monitor illegal crypto transactions and hold fraudsters accountable for their actions.
“So in all our zones, we now have competent cryptocurrency investigators. About a week ago, we recovered vast funds for a victim of a cryptocurrency scam”, he said
A financial market journalist asked EFCC Nigeria how they have worked with stakeholders in the industry to encourage innovations. He mentioned that many Nigerians had created innovative products around cryptocurrencies, which have attracted investments home and abroad.
He also mentioned cases of young Nigerians harassed and blackmailed by the agency for trading cryptocurrency. One such case is that of Abiodun, who was exonerated because of approval from the crimes commission.
In further response to his questions, the agency said:
“We don’t harass people. You will be invited for questioning when an allegation is leveled against you. We won’t bother you. We will even support you if found innocent. We don’t discourage young ones from making it in the FinTech world. As much as the banks do not allow cryptocurrency transactions to a large extent, we are working on how best to manage the situation.”
Another listener on the twitter space, ElohoTheDon, complained about EFCC’s response time regarding complaints in cryptocurrency.
The Assistant Commander of the EFCC, Abdulkareem Chukkol, who was also in attendance, responded by assuring him that they are getting more handlers and operatives to handle crypto frauds.
According to the EFCC, cryptocurrency has gained an early reputation for using Silkroad, an illegal money laundering instrument on the dark web.
In a concluding statement by EFCC, Abdulekareem Chukkol said cryptocurrency has come to stay despite fuelling many nefarious activities like money laundering, investment, and contract scams. He assured Nigerians that they would continue to do their best to curb these incidences.
EFCC Nigeria also encouraged Nigerians to always do their research before making any investments into crypto.
“Do your proper KYC, and know the person you transact with just in case the law comes knocking on your door and challenges you,” he furthered.
The space ended with a note from EFCC assuring Nigerians that cryptocurrency and cryptocurrency transactions are not illegal as long as Nigerians deal with crypto transactions within the ambit of the law.
Do you think the EFCC is crypto-friendly or anti-crypto? Let us know your thoughts in the comment section below.
