Court Orders Forfeiture Of 431 Phones Allegedly Linked To Chinese Cyber-Fraud Case

The Federal High Court in Lagos has ordered the final forfeiture to the Federal Government 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 had asked the court to permanently forfeit the devices, which it alleged were acquired with proceeds of unlawful activities and used in perpetrating internet fraud.

The application was brought as an action in rem under Section 17 of the Advance Fee Fraud and Other Related Offences Act, 2006, and Section 44(2)(b) of the 1999 Constitution.

In an affidavit filed in support of the application, an EFCC investigating officer, Christopher Augustine, alleged that the phones were connected to an elaborate cyber-fraud operation allegedly operated by Chinese nationals in collaboration with Nigerian youths in Lagos.

The Commission alleged that some Chinese nationals, alongside other foreign nationals from China, Kyrgyzstan, the Philippines and Pakistan, established a facility known as “HK” in Victoria Island, Lagos.

According to the EFCC, the facility had more than 500 laptops, about 400 mobile phones and various telecommunications SIM cards, which were allegedly used for romance scams, cryptocurrency fraud and investment scams.

The Commission further alleged that Nigerian youths were recruited online and brought to the facility, where they were allegedly trained to engage in fraudulent activities.

The EFCC said a sting operation carried out on December 10, 2024, resulted in the arrest of more than 700 people, including about 500 Nigerians, 148 Chinese nationals, 40 Filipinos, two persons identified in the affidavit as “Kharzartan” and one Pakistani national.

The Commission alleged that the suspects targeted victims, particularly in the United States, Canada, Mexico and parts of Europe, through phishing and online communications.

It 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 alleged foreign collaborators.

According to the EFCC, GICL had about 200 Chinese nationals working as recruiters and supervisors of Nigerian youths.

The Commission alleged that the recruits were assigned WhatsApp accounts linked 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.

The victims were allegedly directed to an online investment and shopping platform identified as “www.yooto.com”, with activation fees said to begin from 35 dollars.

The EFCC further alleged that an account linked to Huang received more than three-point-four billion naira, which the Commission described as proceeds of the alleged unlawful activities.

The Commission said Huang and GICL also purchased mobile phones for Nigerian youths allegedly involved in the operation.

Following its investigation, the EFCC 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 Commission said Huang and GICL pleaded guilty to the seven counts and were subsequently convicted and sentenced by the court.

It was during further investigations, according to the EFCC, that the Commission discovered the additional 431 mobile phones allegedly linked to the convicts and suspected to have been used in the fraudulent activities.

The EFCC subsequently approached the court on July 8, 2026, for an interim forfeiture order.

Justice Dipeolu granted the interim order and directed the Commission to publish it in a national newspaper, giving anyone claiming an interest in the property an opportunity to appear before the court and show cause why the order should not be made final.

The EFCC said it complied with the directive by publishing the order in The Guardian newspaper on August 11, 2026.

After the stipulated period elapsed without a successful challenge to the interim order, the Commission filed its application 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 submitted that the proceedings were non-conviction-based, arguing that forfeiture under the provision does not depend on a conviction for an offence.

Relying on decisions including Dame Patience Jonathan v. FRN and La-Wari Furniture & Baths Ltd v. FRN & Anor, the EFCC urged the court to hold that the statutory requirements for final forfeiture had been met.

Justice Dipeolu, after hearing the application, granted the Commission’s request and ordered the final forfeiture of the 431 mobile phones to the Federal Government.