Cyber-Fraud: EFCC Wins Court Order For Final Forfeiture Of 431 Phones

Justice Deinde Dipeolu of the Federal High Court sitting in Lagos has ordered the final forfeiture of 431 mobile phones allegedly linked to convicted Chinese cyber-fraud operators to the Federal Government.

According to Bush Radio Academy, the judge granted the Economic and Financial Crimes Commission (EFCC) application on September 29, 2026, following arguments by EFCC counsel, Hanatu Kofarnaisa.

The application was brought under Section 17 of the Advance Fee Fraud and Other Related Offences Act, 2006, and Section 44(2)(b) of the 1999 Constitution. The case, marked FHC/LAG/MISC/990/2026, was filed as an action in rem.

The forfeiture followed an interim order granted by the court on July 8, 2026. The EFCC was subsequently directed to publish the order in a national newspaper to allow anyone with an interest in the mobile phones to appear before the court and explain why the assets should not be permanently forfeited.

The Commission said it complied with the directive by publishing the order in The Guardian newspaper on August 11, 2026. After the stipulated period expired without a successful challenge to the interim order, the EFCC returned to court to seek the final forfeiture of the devices.

In an affidavit filed in support of the application, an EFCC investigating officer, Christopher Augustine, alleged that the 431 phones were connected to an elaborate cyber-fraud operation involving Chinese nationals and Nigerian youths in Lagos.

The Commission alleged that some Chinese nationals, alongside other foreign nationals from China, Kyrgyzstan, the Philippines and Pakistan, established a facility known as “HK” in Victoria Island, Lagos, where various forms of internet fraud were allegedly conducted.

According to the EFCC, the operation involved hundreds of laptops and mobile phones, as well as local telecommunications cards, which were allegedly used for romance scams, cryptocurrency fraud and investment-related schemes.

The Commission further alleged that Nigerian youths were recruited online and taken to the facility, where they allegedly lived with foreign nationals and received training on how to carry out fraudulent activities.

The EFCC said a sting operation conducted on December 10, 2024 resulted in the arrest of more than 700 people, including about 500 Nigerians, 148 Chinese nationals, 40 Filipinos, two individuals identified in the affidavit as “Kharzartan” and one Pakistani national.

The Commission also alleged that the facility was used to train Nigerian and foreign recruits to target victims through phishing, romantic conversations and purported investment opportunities, particularly targeting individuals in the United States, Canada, Mexico and several European countries.

The affidavit further stated that Genting International Company Limited (GICL), incorporated in 2024, was controlled by Chinese national Huang Haoyu, also known as Ken, and other alleged foreign collaborators.

The EFCC alleged that GICL had about 200 Chinese employees who worked as recruiters and supervisors of Nigerian youths. The recruits were allegedly assigned WhatsApp accounts connected to foreign telephone numbers, including numbers registered in Germany and Italy, which they allegedly used to communicate with prospective victims.

The Commission further alleged that victims were encouraged to invest through an online platform identified as “yooto.com”, with activation fees reportedly starting from $35. It also alleged that an account linked to Huang received more than N3.4 billion, which the agency described as proceeds of the alleged unlawful activities.

According to the EFCC, Huang and GICL also acquired mobile phones for some Nigerian recruits allegedly involved in the internet fraud operation, while several electronic devices were recovered during the investigation.

The Commission said it subsequently filed a seven-count charge against Huang, GICL and other foreign nationals on March 7, 2025. The charges reportedly included cyber terrorism, possession of fraudulent documents, failure to declare activities to the Special Control Unit Against Money Laundering, illegal foreign exchange transactions and money laundering.

The EFCC stated that Huang and GICL pleaded guilty to the charges and were convicted and sentenced by the court.

Following further investigation, the Commission said it discovered an additional 431 mobile phones allegedly connected to the convicted persons and suspected to have been used in the fraudulent activities.

The EFCC consequently approached the Federal High Court on July 8, 2026, seeking an interim forfeiture order over the devices. The court granted the request and directed the Commission to publish the order to notify anyone who might have an interest in the property.

After the publication in The Guardian and the expiration of the period allowed for objections, the EFCC filed a fresh application seeking permanent forfeiture of the phones.

In its submission, the Commission argued that Section 17 of the Advance Fee Fraud and Other Related Offences Act empowers the court to order the forfeiture of property reasonably suspected to be proceeds of unlawful activity.

The EFCC also maintained that the proceedings were non-conviction-based and were designed to prevent assets suspected to be connected to criminal activity from being dissipated.

After hearing the EFCC’s arguments, Justice Dipeolu granted the application and ordered the final forfeiture of the 431 mobile phones to the Federal Government.