The Federal High Court in Lagos has ordered the final forfeiture of 431 mobile phones linked to convicted Chinese cyber fraud operators and their Nigerian collaborators to the Federal Government.
Justice Deinde Dipeolu granted the order on Monday following an application by the Economic and Financial Crimes Commission, argued by its counsel, Hanatu Kofarnaisa.
The forfeiture application was brought under Section 17 of the Advance Fee Fraud and Other Related Offences Act, 2006, and Section 44(2)(b) of the 1999 Constitution in respect of devices allegedly acquired with proceeds of unlawful activities.
The suit, marked FHC/LAG/MISC/990/2026, was filed as an action in rem, targeting the property rather than specific individuals.
In an affidavit by an EFCC investigating officer, Christopher Augustine, the commission linked the 431 phones to an alleged cyber fraud syndicate involving Chinese nationals and Nigerian youths operating in Lagos.
The EFCC alleged that the syndicate established a base known as “HK” in Victoria Island, where its operations were conducted with about 500 laptops, 400 mobile phones and several local telecommunications lines.
According to the commission, the operation involved romance scams, cryptocurrency fraud and other investment-related schemes targeting victims in the United States, Canada, Mexico and parts of Europe.
The EFCC further alleged that Nigerian youths were recruited online, housed at the premises and trained by foreign nationals to conduct the fraudulent activities using false identities.
The commission said a sting operation on December 10, 2024 resulted in the arrest of more than 700 suspects, including about 500 Nigerians, 148 Chinese nationals, 40 Filipinos, two persons identified as “Kharzartan” and one Pakistani.
The EFCC alleged that Genting International Company Limited, incorporated in mid-2024, was used as a front for the operation and controlled by Chinese national Huang Haoyu, also known as Ken, alongside other foreign collaborators.
The company was also alleged to have employed about 200 Chinese nationals who served as recruiters and supervisors of Nigerian operatives.
The suspects allegedly used WhatsApp accounts linked to foreign telephone numbers, particularly numbers from Germany and Italy, to engage victims in romantic and investment-related conversations before directing them to transact on an online platform identified as “ www.yooto.com ”.
The EFCC further alleged that more than N3.4bn passed through accounts linked to Huang as proceeds of the alleged unlawful activities.
The commission said Huang and GICL were arraigned on March 7, 2025, on a seven-count charge involving cyber terrorism, possession of fraudulent documents, failure to declare activities to the Special Control Unit Against Money Laundering, illegal foreign exchange transactions and money laundering.
It said the defendant and the company pleaded guilty, were convicted and subsequently sentenced by the court.
According to the EFCC, the 431 phones were later discovered to be connected to the convicted parties and suspected to have been used in the fraudulent operations.
The commission had earlier secured an interim forfeiture order on July 8, 2026, and published the order in The Guardian on August 11, 2026, in compliance with the court’s directive inviting interested parties to show cause why the phones should not be permanently forfeited.
No opposition was filed within the stipulated period, prompting the EFCC to return to court for the final forfeiture order.
In its submissions, the commission argued that forfeiture proceedings under Section 17 of the Advance Fee Fraud Act were non-conviction-based and intended to prevent suspected proceeds of crime from being dissipated.
The EFCC relied on judicial authorities, including Dame Patience Jonathan v. FRN and La-Wari Furniture & Baths Ltd v. FRN & Anor, to support the constitutionality of the forfeiture process.
Justice Dipeolu, after considering the application, held that the EFCC had satisfied the legal requirements and ordered the final forfeiture of the 431 mobile phones to the Federal Government.
The ruling brings to an end the interim forfeiture process initiated by the commission in July 2026.
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