By Iroyin Yoruba Television
The Federal High Court in Lagos has ordered the permanent forfeiture of 431 mobile phones seized during an Economic and Financial Crimes Commission investigation into an international cyber-fraud network operating in Lagos.
Justice Deinde Dipeolu issued the final forfeiture order on Tuesday after considering an application filed by the EFCC seeking to permanently transfer the devices to the Federal Government.
The court action represents the latest development in an investigation that uncovered what the anti-graft agency described as an organised cybercrime operation involving foreign nationals and Nigerian recruits.
The phones were described by the EFCC as instruments and proceeds connected to unlawful activities.
The commission said the devices were recovered during follow-up investigations after the initial prosecution of members of the network.
COURT GRANTS FINAL FORFEITURE
The EFCC brought the forfeiture application under the Advance Fee Fraud and Other Related Offences Act and relevant provisions of the 1999 Constitution.
The case was filed as an action in rem, meaning the proceedings concerned the property itself rather than requiring the court to determine the criminal liability of a particular individual through the forfeiture application.
EFCC counsel Hanatu Kofarnaisa asked the court to grant the final forfeiture after the statutory period for interested parties to challenge the earlier interim order had expired.
The prosecution informed the court that no party had filed an objection within the required period.
Justice Dipeolu subsequently held that the statutory requirements had been satisfied and ordered that the 431 phones be permanently forfeited to the Federal Government.
HOW THE PHONES WERE LINKED TO THE INVESTIGATION
The 431 devices were recovered during investigations connected with a cybercrime operation in Victoria Island, Lagos.
According to the EFCC's evidence before the court, the investigation uncovered an operational centre allegedly used by an international group involved in online fraud.
The agency said the operation involved foreign nationals from China, Kyrgyzstan, the Philippines and Pakistan.
Investigators reportedly identified a facility referred to as “HK” where hundreds of computers and mobile phones were used in online operations.
The equipment was allegedly deployed in activities involving romance scams, cryptocurrency fraud and investment-related schemes.
The EFCC said the operation demonstrated how organised cybercrime groups can use physical locations in Nigeria to coordinate fraudulent activities targeting victims in other countries.
MORE THAN 700 PEOPLE ARRESTED
The investigation originated from a major sting operation conducted on December 10, 2024.
The EFCC said more than 700 suspects were arrested during the operation.
Those arrested included more than 500 Nigerians, 148 Chinese nationals, 40 Filipinos, two Kyrgyz nationals and one Pakistani national.
The scale of the arrests indicated the international nature of the operation.
The alleged network was not limited to individuals acting independently online. Investigators identified an organisational structure involving foreign nationals and Nigerian workers.
That structure is significant because cybercrime networks can operate across borders while using local infrastructure and personnel.
COMPANY LINKED TO THE NETWORK
Investigators also identified Genting International Company Limited as a company allegedly connected to the operation.
The EFCC said the company was registered in 2024 and was controlled by a Chinese national identified as Huang Haoyu, also known as Ken.
According to the evidence presented to the court, the company employed approximately 200 Chinese nationals who recruited and supervised Nigerian youths involved in the alleged online scams.
The investigation therefore went beyond individual fraudulent transactions and examined the organisational structure allegedly supporting the activities.
INTERNATIONAL VICTIMS
The EFCC said the alleged network targeted victims in several countries, including the United States, Canada, Mexico and countries across Europe.
Workers were reportedly provided with foreign telephone numbers, including numbers associated with countries such as Germany and Italy.
The use of foreign numbers and online communication platforms allegedly helped the operators present themselves to victims as individuals or businesses based outside Nigeria.
Such methods can make cybercrime investigations more complicated because victims, perpetrators, financial transactions and digital infrastructure may be located in different countries.
International cooperation can therefore become important when investigating and prosecuting such cases.
ROMANCE AND INVESTMENT SCAMS
The EFCC's investigation identified several alleged forms of fraud connected with the network.
Romance scams typically involve criminals creating false identities and developing relationships with victims online before requesting money.
Investment scams can involve promises of financial returns through fraudulent platforms or investment opportunities.
The agency said the network also used a fraudulent online shopping platform.
The combination of different methods indicates that cybercriminal organisations can operate multiple schemes simultaneously while using similar digital infrastructure.
MORE THAN ₦3.4BN TRACED
The investigation also traced more than ₦3.4 billion in alleged fraud proceeds to Huang Haoyu's personal account.
The EFCC told the court that part of the money was used to purchase mobile devices for Nigerian recruits working within the operation.
Financial tracing is an important part of major cybercrime investigations because digital fraud often involves the movement of money through multiple accounts and payment channels.
Identifying how money moves can help investigators connect individuals, companies, devices and other assets to an alleged criminal operation.
It can also support subsequent applications for asset forfeiture.
PREVIOUS CONVICTIONS
The individuals and company at the centre of the investigation had already faced prosecution.
The EFCC said Huang Haoyu and Genting International Company Limited were convicted after pleading guilty to charges involving cyber-terrorism, money laundering and illegal foreign-exchange transactions.
The charges were filed in March 2025.
The subsequent discovery of additional mobile phones led the commission to seek further forfeiture orders.
The latest court decision therefore concerns assets recovered during follow-up investigations rather than simply repeating the earlier criminal proceedings.
INTERIM FORFEITURE ORDER
Before the final forfeiture, the EFCC obtained an interim order concerning the 431 mobile phones on July 8, 2026.
An interim forfeiture order temporarily places property under the control of the government while interested parties are given an opportunity to challenge the proposed permanent forfeiture.
The EFCC subsequently complied with the court's direction to publish the interim order.
The notice was published on August 11, allowing interested parties to come forward and explain why the phones should not be permanently forfeited.
No objection was filed before the statutory deadline expired.
That cleared the way for the EFCC to return to court and seek the final order.
WHY THE FORFEITURE MATTERS
Asset forfeiture is an important part of Nigeria's response to financial and cybercrime.
Criminal networks can rely on computers, phones, bank accounts, vehicles, properties and other assets to carry out or support unlawful activities.
Recovering those assets can disrupt the operations of such networks.
The permanent forfeiture of the phones means the devices will no longer remain available to the network that investigators linked them to.
The case also demonstrates that cybercrime investigations can involve physical evidence as well as digital records.
Although online fraud takes place largely through digital platforms, investigators can still identify physical infrastructure used to coordinate the activity.
INTERNATIONAL DIMENSION OF CYBERCRIME
The case illustrates the increasingly international nature of financial and cybercrime.
The alleged operators included nationals from several countries, while the reported victims were located across North America, Europe and other jurisdictions.
Funds can also move across international banking and digital-payment systems.
This makes cooperation among law-enforcement agencies important.
Investigators may need information from telecommunications companies, financial institutions, technology platforms and foreign authorities to establish how a network operates.
The Nigerian case therefore has implications beyond the individual devices forfeited by the court.
PROTECTING POTENTIAL VICTIMS
The investigation also highlights the risks faced by people using online communication and investment platforms.
Romance and investment scams often rely on trust and persuasion rather than traditional physical confrontation.
Fraudsters can spend considerable time communicating with victims before requesting money or encouraging them to transfer funds.
People are therefore advised to exercise caution when communicating with unknown individuals online, particularly when the relationship quickly develops into requests for money or investment.
Promises of unusually high returns should also be independently verified before funds are transferred.
THE ROLE OF DIGITAL EVIDENCE
Mobile phones can contain significant amounts of evidence in cybercrime investigations.
Communication records, applications, account information, photographs, transaction details and other digital traces can potentially help investigators establish relationships between suspects and alleged activities.
The forfeiture case demonstrates how physical devices can become part of a broader financial-crime investigation.
However, the legal process still requires authorities to establish the connection between property and unlawful activity before permanent forfeiture can be granted.
In this case, the court found that the EFCC had satisfied the relevant statutory requirements.
EFCC'S ANTI-CYBERCRIME WORK
The EFCC has continued to make cybercrime and internet fraud a major part of its enforcement activities.
Nigeria's large digital economy provides legitimate opportunities for businesses and individuals but can also be exploited by criminal networks.
The agency's investigations therefore increasingly involve digital evidence, financial tracing and international cooperation.
Large operations such as the Victoria Island investigation can take considerable time because investigators may need to examine devices, accounts, communications and corporate structures.
The latest forfeiture order shows how an investigation can continue to produce legal developments long after the initial arrests.
WHAT THE COURT ORDER MEANS
The final order means the 431 mobile phones are permanently forfeited to the Federal Government.
The decision followed the expiration of the period provided for interested parties to challenge the interim forfeiture.
The court determined that the EFCC had met the necessary legal requirements.
The order does not itself establish new criminal convictions against every person connected to the wider investigation.
Rather, it concerns the legal status of the specific devices that were the subject of the forfeiture application.
That distinction is important when reporting asset-forfeiture proceedings.
A BROADER LESSON FOR CYBERCRIME INVESTIGATIONS
The case shows that cybercrime networks can involve physical offices, employees, telecommunications equipment and financial infrastructure alongside online platforms.
Investigators therefore need to examine the entire structure rather than focusing only on individual online transactions.
The reported use of hundreds of devices demonstrates the scale that organised cybercrime operations can reach.
It also shows why financial investigation and asset recovery can be important components of enforcement.
Removing equipment and tracing alleged proceeds can disrupt the operational capacity of criminal networks.
LOOKING AHEAD
The final forfeiture of the 431 phones represents another stage in the EFCC's wider investigation into the alleged international cybercrime network.
The case began with a large-scale operation in 2024 and continued through prosecutions, financial investigations, recovery of additional devices and court proceedings.
The latest ruling brings the legal process concerning these 431 phones to a conclusion by permanently transferring them to the Federal Government.
The wider fight against cybercrime, however, remains ongoing.
As more financial activity moves online, criminal groups continue to develop methods for exploiting digital platforms, social networks and electronic payment systems.
Law-enforcement agencies will therefore need to combine traditional investigation with digital forensics, financial intelligence and international cooperation.
For members of the public, the case also reinforces the importance of caution when dealing with strangers online, investment opportunities promoted through digital platforms and requests for money from people whose identities cannot be independently verified.
The Federal High Court's latest decision demonstrates how Nigeria's anti-corruption and law-enforcement institutions can use asset-forfeiture proceedings to remove equipment alleged to have been connected to organised financial crime.
The 431 phones will now remain permanently forfeited to the Federal Government, following the court's finding that the statutory requirements for the final order had been met.