Police Arrest Seven Over ₦3.6 Billion Crypto Fraud, Romance Scams

Police Arrest Seven Over ₦3.6 Billion Crypto Fraud, Romance Scams

The Nigeria Police Force National Cybercrimes Centre (NPF-NCCC) has arrested seven suspects in a major crackdown on cyber-enabled financial crimes, including a staggering ₦3.6 billion cryptocurrency fraud, sophisticated business email compromise schemes, sextortion, blackmail, identity theft, and romance scams.

The arrests were announced on Wednesday by AIG Akaninyene Ezima, who heads the cybercrime unit, during a press conference in Abuja. The operatives, acting under the codename “Operation Broken Mask,” carried out the arrests in Lagos and Anambra States, with technical support from international law enforcement agencies including Germany’s Federal Police (Bundeskriminalamt – BKA) and the Royal Canadian Mounted Police (RCMP), under the framework of the Budapest Convention 24/7 Network.

According to the police, these arrests represent a significant victory in the ongoing battle against transnational cybercrime networks that use Nigeria as a base to defraud victims both locally and across the globe. The suspects are currently in custody and will face prosecution under Nigeria’s Cybercrimes Act and other relevant money laundering laws.

The first and most high-profile case involves a technology entrepreneur arrested in connection with a massive ₦3.6 billion cryptocurrency money laundering operation. The investigation was triggered by a formal petition from Ugwu Francisca & Co., acting on behalf of two victims, Elizabeth and Prince Iruaregbon. The complainants alleged that they had lost ₦56.3 million after being lured into a fraudulent WhatsApp-based stock trading platform that promised unrealistic high returns on investment.

Following a detailed forensic audit of financial transactions, investigators traced the victims’ funds to accounts linked to a technology company. The prime suspect, who was arrested on August 13 in Agiliti, Lagos, was identified as the proprietor of Kestart Technology. He reportedly admitted to operating the company and engaging in peer-to-peer cryptocurrency trading on the Bybit exchange. A review of the company’s account with Save Heaven Microfinance Bank revealed terminal cash-out inflows and outflows totaling ₦3.2 billion between October 2025 and May 2026 alone.

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More alarmingly, police forensic analysts discovered that approximately ₦3.6 billion in suspected criminal proceeds was systematically converted into Tether (USDT) stablecoins through Bybit peer-to-peer transactions. This conversion, the police say, was a deliberate attempt to launder the money and obscure the financial trail, making it harder for authorities to track and recover the stolen assets.

In another significant breakthrough, the NPF-NCCC arrested a suspect linked to a sophisticated business email compromise (BEC) scheme that targeted companies in over 50 countries. This arrest came after the German Federal Police (BKA) submitted a formal request for data preservation related to an internet protocol (IP) address allegedly used in the operation. The suspect was apprehended on July 20 at his residence in Megamound Estate, Lekki, Lagos.

Forensic examination of electronic devices recovered from the suspect’s home uncovered a chilling database containing over 12.5 million email logs belonging to victims spread across more than 50 nations. Investigators established that the suspect used phishing kits obtained through the encrypted messaging platform Telegram to compromise Microsoft 365 credentials of employees working for targeted companies. By gaining unauthorized access to corporate email systems, he was able to intercept sensitive business communications and redirect large financial payments into accounts he controlled.

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The financial scale of this BEC operation is equally staggering. The suspect’s Bank Verification Number (BVN) was linked to accounts maintained with six different financial institutions and fintech platforms, including Guaranty Trust Bank, Zenith Bank, FairMoney, Carbon, OPay, and PalmPay. Police allege that he made over ₦100 million from this fraudulent enterprise. A Mercedes-Benz AMG GLC 43, which investigators believe was purchased with proceeds from the crime, was also seized during the operation.

The police also arrested two individuals in Anambra State on charges of conspiracy, identity theft, impersonation, and computer-related fraud. This investigation commenced after a formal complaint was lodged by Faruk Yabo, the Permanent Secretary at the Federal Ministry of Solid Minerals Development, who reported that an unknown individual was impersonating him on WhatsApp and Facebook.

The two suspects were taken into custody on August 4 following extensive technical intelligence operations. During searches, law enforcement officers recovered a staggering haul of telecommunications materials: 24 registered and 33 unregistered MTN SIM cards, alongside 26 registered and 18 unregistered Airtel SIM cards, as well as an MTN toolkit. One of the suspects reportedly confessed to buying and selling both registered and unregistered SIM cards, and admitted to creating a fake social media account in the identity of a United Kingdom citizen, which was then used to defraud unsuspecting victims in India.

AIG Akaninyene Ezima emphasized that these arrests are part of a broader, sustained campaign by the NPF-NCCC to dismantle cybercrime networks operating within Nigeria and across international borders. He warned that cybercriminals would not find refuge in encrypted platforms or cryptocurrency, as the police are continuously strengthening their technical capabilities and deepening international partnerships.

The police have confirmed that all seven suspects will be charged in court upon the conclusion of investigations, facing counts that include money laundering, identity theft, computer-related fraud, and violations of the Cybercrimes Act.

Police Arrest Seven Over ₦3.6 Billion Crypto Fraud, Romance Scams