Criminal Action on Digital Currencies | A Nigerian Court Sentences Individual to Five Years Imprisonment for Money Laundering Using Cryptocurrencies

In a significant move against cybercrime and money laundering activities, the Federal High Court in Lagos, Nigeria, has sentenced Emmanuel Mr Aitanu to five years in prison. The conviction, which comes weeks after the sentencing of eight Chinese nationals for similar offences, is part of the Economic and Financial Crimes Commission (EFCC) Nigeria's broader enforcement efforts.

The operation, targeting cryptocurrency investment and romance fraud syndicates operating out of Lagos, has seen the seizure of significant funds and assets. Mr Aitanu, who was found guilty of laundering proceeds of cybercrime, was reported to have retained 265.8269 Bitcoin in a crypto wallet, N20 million in a Zenith Bank account, and purchased luxury vehicles and landed property in Lagos, including a white 2015 Mercedes Benz C300 worth N17 million and a grey Toyota Corolla. He also acquired a plot of land at Ikota Village.

The proceeds were traced to Mr Aitanu's accounts and were used to purchase these assets. The judge ordered the forfeiture to the federal government of $42,000, the Ikota Village plot of land, the Mercedes Benz, the Toyota Corolla, as well as all cryptocurrency and funds traced to Mr Aitanu's accounts.

The EFCC Nigeria's enforcement efforts also target AML/CFT regulations under the Financial Action Task Force (FATF) framework, particularly Designated Non-Financial Businesses and Professions (DNFBPs) including crypto asset businesses. The commission has seized Bitcoin worth over $91,000 from a fraud suspect and secured the conviction of two Chinese nationals for crypto-enabled crime.

The December 2024 "Eagle Flush Operation" by EFCC Nigeria resulted in the arrest of 792 foreign nationals, among whom eight Chinese nationals—Pan Cai Qi, Zeng Xian Tao, Weng Mao Rong, Wang Xiong Wei (a.k.a. Xiao Bai), Shi Dong Fu, Wang Shi Long, Liu Ke Fan, and Ting Liao—were convicted for cyberterrorism and internet fraud related to a large transnational cryptocurrency scam.

The offences contravened Sections 18(2)(a) and 18(2)(d) of the Money Laundering (Prevention and Prohibition) Act, 2022, and Sections 27 and 36 of the Cybercrimes (Prohibition, Prevention, etc.) Act, 2015. The conviction was based on six counts filed by the Economic and Financial Crimes Commission of Nigeria (EFCC Nigeria).

The EFCC Nigeria's enforcement efforts include addressing non-compliance with the Money Laundering (Prevention & Prohibition) Act, 2022. The commission is committed to combating money laundering and financing of terrorism activities, and this conviction serves as a reminder that such activities will not be tolerated in Nigeria.

Criminal Action on Digital Currencies | A Nigerian Court Sentences Individual to Five Years Imprisonment for Money Laundering Using Cryptocurrencies