Court Orders Final Forfeiture of 431 Phones Linked to EFCC Cyber-Fraud Case

The Federal High Court in Lagos has ordered the final forfeiture of 431 mobile phones to the Federal Government after the EFCC linked the devices to a large-scale cyber-fraud investigation involving Chinese nationals and Nigerian youths.

Justice Deinde Dipeolu granted the order following an application by the Economic and Financial Crimes Commission (EFCC), which alleged that the phones were acquired with proceeds of unlawful activities and used in internet fraud.

The EFCC told the court that the devices were connected to a cyber-fraud operation allegedly run by Chinese nationals in collaboration with Nigerian recruits in Lagos. The commission said the operation was based at a facility known as “HK” in Victoria Island, where more than 500 laptops, about 400 phones and numerous SIM cards were allegedly used for romance scams, cryptocurrency fraud and investment scams.

According to the EFCC, Nigerian youths were recruited online and taken to the facility, where they were allegedly trained to target victims in the United States, Canada, Mexico and parts of Europe through phishing and other online communications.

A sting operation on December 10, 2024, reportedly led to the arrest of more than 700 people. The EFCC said those arrested included about 500 Nigerians, 148 Chinese nationals, 40 Filipinos, two people identified in court documents as “Kharzartan” and one Pakistani national.

The commission also alleged that a company, Genting International Company Limited (GICL), was incorporated in 2024 and controlled by Huang Haoyu, also known as Ken, and other foreign collaborators. It claimed that about 200 Chinese nationals worked with the company as recruiters and supervisors of Nigerian youths.

The EFCC said the recruits were allegedly given WhatsApp accounts linked to foreign telephone numbers and used them to approach victims with romantic conversations and fake business or investment opportunities. Victims were allegedly directed to an online platform identified as “yooto.com”, where activation fees reportedly started at $35.

The commission further alleged that an account linked to Huang received more than N3.4 billion, which it described as proceeds of the alleged fraud. Following its investigation, Huang, GICL and other foreign nationals were charged with seven offences, including cyber terrorism, money laundering, illegal foreign exchange transactions and other related offences. The EFCC said Huang and GICL pleaded guilty and were convicted and sentenced.

The 431 phones were discovered during further investigations, prompting the EFCC to seek an interim forfeiture order on July 8, 2026. Justice Dipeolu granted the order and directed its publication to allow anyone claiming an interest in the devices to challenge the forfeiture.

The EFCC said it published the order in The Guardian on August 11, 2026, but no successful challenge was made within the stipulated period. After hearing the commission’s application, Justice Dipeolu ordered the final forfeiture of all 431 mobile phones to the Federal Government.