FBI trains 50 Nigerian investigators on how to prosecute cryptocurrency-related crimes

OVER 50 Nigerian investigators and prosecutors have been trained by the USA authorities to tackle the growing menace of cryptocurrency-enabled organised crime according to a recent update from the US Department of Justice (USJD).

According to the USJ, the training, which was held virtually, focused on enhancing the capacity of Nigerian investigators to investigate cryptocurrency. As part of the programme, a webinar was held in collaboration with the Federal Bureau of Investigations and the US embassies in Kenya, Ethiopia and Nigeria during which they discussed policies and programmes to combat international narcotics and crime.

Cryptocurrencies are digital or virtual currencies such as Bitcoin and Ethereum and others, that can be used to buy goods and services and are also traded for profit. Being unregulated and requiring no physical bank vaults, they provide a relatively safe haven for criminals to launder proceeds of corruption, fraud, drug trafficking and other heinous crimes.

There are also concerns about their security with many sophisticated fraudsters able to hack into the digital vaults to steal them from their owners. A study by Whitestream, an Israeli-based blockchain analytics firm, regarded Nigeria’s commercial hub Lagos, as the focal point for Africa’s crypto scams.

Research indicated that many scammers create a persona of luxurious life achieved from the wealth created with cryptocurrency investments to attract unsuspecting victims. To combat the menace, the Central Bank of Nigeria (CBN) had barred commercial banks and other financial institutions from transacting with cryptocurrency in fear of the risks it poses to investments and the economy at large.

CBN spokesman Osita Nwanisobi, explained that cryptocurrency transactions were devoid of proper regulation and prone to financial crimes in the country. He added that the CBN's decision is based on significant risks that transacting in cryptocurrencies portend, including loss of investment, money laundering, terrorism financing, illicit fund flows and criminal activities.