The Federal High Court in Lagos has ordered the final forfeiture of 431 mobile phones allegedly linked to a cyber-fraud operation involving Chinese nationals and Nigerian youths.
Justice Deinde Dipeolu made the order following an application by the Economic and Financial Crimes Commission (EFCC).
The Commission told the court that the phones were acquired with proceeds of alleged unlawful activities and were used in internet fraud.
The application was filed under Section 17 of the Advance Fee Fraud and Other Related Offences Act, 2006, and Section 44(2)(b) of the 1999 Constitution.
EFCC Links Phones to Cyber-Fraud Facility
In an affidavit filed in support of the application, EFCC investigating officer Christopher Augustine alleged that the devices were connected to an elaborate cyber-fraud operation allegedly run by Chinese nationals in collaboration with Nigerian youths in Lagos.
The EFCC alleged that Chinese nationals and other foreign nationals from China, Kyrgyzstan, the Philippines and Pakistan established a facility known as “HK” in Victoria Island, Lagos.
According to the Commission, the facility housed more than 500 laptops, about 400 mobile phones and several telecommunications SIM cards allegedly used for romance scams, cryptocurrency fraud and investment scams.
The EFCC further alleged that Nigerian youths were recruited online and taken to the facility, where they were allegedly trained to engage in fraudulent activities.
Over 700 People Arrested
The Commission said a sting operation conducted on December 10, 2024, led to the arrest of more than 700 people.
Those arrested allegedly included about 500 Nigerians, 148 Chinese nationals, 40 Filipinos, two people identified in the affidavit as “Kharzartan” and one Pakistani national.
The EFCC alleged that victims, particularly in the United States, Canada, Mexico and parts of Europe, were targeted through phishing and online communications.
The Commission also alleged that Genting International Company Limited (GICL), incorporated in 2024, was controlled by Huang Haoyu, also known as Ken, and other alleged foreign collaborators.
According to the EFCC, about 200 Chinese nationals working with GICL acted as recruiters and supervisors of Nigerian youths.
The recruits were allegedly assigned WhatsApp accounts connected to foreign telephone numbers, including German and Italian numbers, which they allegedly used to engage victims in romantic conversations and purported business and investment opportunities.
Victims were allegedly directed to an online investment and shopping platform identified as “www.yooto.com”, with activation fees reportedly starting from $35.
EFCC Alleges N3.4bn Transaction
The Commission further alleged that an account linked to Huang received more than N3.4 billion, which it described as proceeds of the alleged unlawful activities.
The EFCC said Huang and GICL also purchased mobile phones for Nigerian youths allegedly involved in the operation.
Following its investigation, the Commission said it filed a seven-count charge against Huang, GICL and other foreign nationals on March 7, 2025.
The charges included cyber terrorism, possession of fraudulent documents, failure to declare activities to the Special Control Unit Against Money Laundering (SCUML), illegal foreign exchange transactions and money laundering.
The EFCC said Huang and GICL pleaded guilty to the seven counts and were subsequently convicted and sentenced by the court.
Court Grants Final Forfeiture
The EFCC said further investigations uncovered the additional 431 mobile phones allegedly linked to the convicts and suspected to have been used in the fraudulent activities.
The Commission subsequently approached the court on July 8, 2026, seeking an interim forfeiture order.
Justice Dipeolu granted the interim order and directed the EFCC to publish it in a national newspaper, allowing anyone claiming an interest in the property to appear before the court and show cause why the order should not be made final.
The EFCC said it complied by publishing the order in The Guardian newspaper on August 11, 2026.
After the stipulated period expired without a successful challenge, the Commission applied for final forfeiture.
In its written address, the EFCC argued that Section 17 of the Advance Fee Fraud and Other Related Offences Act empowers the court to forfeit property reasonably suspected to be proceeds of unlawful activity.
The Commission also argued that the forfeiture proceedings were non-conviction-based and therefore did not depend on a conviction.
Relying on previous decisions, including Dame Patience Jonathan v. FRN and La-Wari Furniture & Baths Ltd v. FRN & Anor, the EFCC urged the court to grant the application.
Justice Dipeolu subsequently ordered the final forfeiture of the 431 mobile phones to the Federal Government.
