The Economic and Financial Crimes Commission (EFCC) of Nigeria has secured the conviction and sentencing of two Chinese nationals for cyberterrorism and internet fraud in what marks a significant milestone in Nigeria’s ongoing crackdown on crypto-enabled financial crimes.

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TL;DR:

  • 2 Chinese nationals convicted for crypto-linked cyberterrorism and internet fraud.

  • Part of a 792-member syndicate busted during the Eagle Flush Operation in Dec 2024.

  • Sentenced to 1-year imprisonment, ₦1M (~$700) fine, and ordered deportation.

  • Reflects EFCC’s intensified AML/CFT drive under FATF standards and local money laundering laws.

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The convicts, Huang Xiao Liang (aka Liu Xiao Liang) and Shi Yang Xiong, were sentenced to one year in prison and fined ₦1 million (~$700) each by Justice Dehinde Dipeolu of the Federal High Court in Ikoyi, Lagos. The court also ordered their deportation upon completing their jail terms and the forfeiture of assets recovered during their arrest to the Federal Government.

The two were among 792 foreign nationals arrested during the December 2024 “Eagle Flush Operation,” a large-scale sting operation that targeted cryptocurrency investment and romance fraud syndicates operating out of Lagos.

CRYPTO CRIME | EFCC Nigeria Arraigns Foreign Nationals Accused of Cryptocurrency and Romance Fraud Following a ‘Landmark Raid’

The EFCC described the raid as its largest single-day operation, calling it a ‘landmark raid.’https://t.co/dltTTNnG3B @officialEFCC pic.twitter.com/aR7PvzaNHU

— BitKE (@BitcoinKE) February 21, 2025

According to the EFCC, the accused were found to have accessed computer systems with the intent to:

“destabilise and destroy the economy and social structure of Nigeria.”

 

While they initially pleaded not guilty, both men later changed their pleas to guilty, allowing the prosecution to secure a swift conviction.

CONTEXT: EFCC’s Broader AML/CFT Push

This case forms part of the EFCC’s broader enforcement efforts against non-compliance with the:

  • Money Laundering (Prevention & Prohibition) Act, 2022

  • Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulations under the Financial Action Task Force (FATF) framework, particularly targeting Designated Non-Financial Businesses and Professions (DNFBPs) – including crypto asset businesses.

With Nigeria’s crypto sector under increasing international scrutiny, the EFCC has intensified efforts to curb the misuse of digital assets for fraud, money laundering, and terrorism financing.

REGULATION | EFCC #Nigeria Busts Up Crypto Fraud Syndicate in Lagos, Arrests 193 Foreign Nationals

The Commission is working with international partners and will investigate possible connections to organized crime.https://t.co/vDxrWamCNE @officialEFCC pic.twitter.com/GoFuq934rM

— BitKE (@BitcoinKE) December 17, 2024

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