by Jude Ayua
The Toronto Police Service, in partnership with Nigeria’s Economic and Financial Crimes Commission (EFCC), has successfully recovered and returned $225,000 to a Toronto victim of a cryptocurrency investment fraud. Investigation found a Nigerian national, Omonkhoa Precious Afure, liable for the fraud.
Timeline of the fraud and funds recovery
A press release from the Toronto Police Service disclosed that in the fall of 2021, it received a “romance cryptocurrency fraud complaint” after the victim initially lost over $355,000 in cryptocurrency. The fraudster, Omonkhoa, initiated communication with the victim via a fake Facebook account under the alias “Moshe Theodor McNigh” in June 2021. He successfully convinced the victim to invest in a fraudulent cryptocurrency scheme through a platform, Legacyfxtraders.online. Following the complaint, EFCC officials contacted the victim to confirm the fraud.
Between 2021 and 2024, the Toronto Police from the Coordinated Cyber Centre (C3), 51 Division Fraud Unit, and Financial Crimes Asset Forfeiture Unit worked in collaboration with the Ontario Provincial Police’s Anti-Rackets Branch, Canadian Anti-Fraud Centre (CAFC), Royal Canadian Mounted Police’s (RCMP) International Liaison Officers in Nigeria, and the EFCC to investigate the fraud and recover the funds.
EFCC officials arrested and charged Omonkhoa to court in Nigeria, also seizing the funds. The Nigerian court eventually found the funds to be the victim’s assets and ordered them to be restituted to the victim. In December 2024, Toronto Police successfully returned $225,000 to the victim.
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International collaborative efforts in tackling cyber fraud
The EFCC’s arrest and prosecution of Omonkhoa demonstrates Nigeria’s efforts and capacity to tackle financial crimes domestically and internationally. The Toronto Police also highlighted in its press release the importance of international collaboration in combating cross-border cybercrime.
The CAFC reported victims losing over $52.5 million to romance frauds and over $309 million to investment frauds in 2023 alone. It estimated that only 5-10% of victims report their frauds to the CAFC or law enforcement, implying actual figures may be higher.
The collaborative efforts between Canadian and Nigerian authorities in this case highlight the relevance of shared intelligence, resources, and legal frameworks to identify, nab, and prosecute perpetrators of cross-border financial and cyber fraud. This collaboration also shows the potential of addressing the complexities of crypto-related fraud.
Read also: Top 4 Safety Tips in Crypto Investment You Should Know
Benefits for the industry
Addressing crypto-related fraud is significant toward fostering trust in the industry and encouraging broader sustainable adoption globally. Tackling such frauds shows a commitment to ensuring a safer environment for investors and users, which can attract participants averse to crypto’s perceived risks. Effective enforcement against fraudulent schemes also deters bad actors, helping to stabilize markets and reduce manipulative practices.
In addition, addressing crypto investment fraud would encourage regulators to view the industry more favorably and pave the way for clearer and friendlier regulatory frameworks. It will further enhance the legitimacy of cryptocurrencies and make them more accessible to traditional financial systems and global commerce.
Read also: Self-custody of Your Cryptoassets: What it Means and How to Do It
Jude Ayua is a policy analyst at CAB. A lawyer, Jude is an associate at Infusion Lawyers where he is a member of the Blockchain & Virtual Assets Group. He is also a member of the Policy & Regulations Committee of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN). Jude reports and writes on crypto policy and regulations. jude@infusionlawyers.com
