Punishment for crypto scam in Nigeria.

[Supreme Donvic]

In Nigeria there’s no law that deals or talk about crypto scam but cryptocurrency related fraud is prosecuted under existing criminal, cybercrime, money laundering and securities laws.
Now when you commit crypto scam in Nigeria the punishments depend on the crime’s seriousness, how it was committed, and the law used, but can include prison, fines, restitution and forfeiture of assets.

When you are involved in fake crypto investment schemes or phishing to lure crypto funds you will be charged as computer-related fraud or cybercrime under the Cybercrimes (Prohibition, Prevention, etc.) Act. And you can get 5 to 7 years imprisonment or a fine depending on how big the crime is.
There was a time when someone was arrested for P2P scammed and he was charged to court and he was made to pay a fine of 200, 000, this shows that the court uses this laws to punish crypto scam.

When you are involved in laundering crypto proceeds, concealing sources of funds, or large-value transactions, courts can charge offenders under anti-money-laundering laws as well as cybercrime laws and you can get 5 years to 20 years imprisonment and you can also be made to Forfeiture of crypto, cash, property and other assets used or acquired with fraud proceeds.

When you are advertising fake crypto related business you will face specific rules and penalties under regulations from the Securities and Exchange Commission (SEC) you will get 3 years or more imprisonment or Fines up to ₦10 million for unapproved advertising or misleading promotions.

So any crypto related businesses you are doing in Nigeria be very careful because if you are caught for scam you will be punished. Remember ignorance is not an excuse to the law.
   

[justinlamode]

Thank you for bringing this information but I would suggest you add some links to your post to avoid breaking forum rules. A lot of us do not know of some of these laws you mentioned since there is no clear crypto framework in Nigeria but seeing them outlined here makes much sense. Assuming the authorities will be able to enforce this, that would have served as a deterrent to scammers that are in large number in Naija. Most of the scams you here about are done through cryptocurrency, these punishments will help a lot.

[Supreme Donvic]

Thank you for bringing this information but I would suggest you add some links to your post to avoid breaking forum rules.

You are welcome.
Link for what exactly I’m a Nigeria law student I just shared some of the things I was taught, if I collected the information from online I would have put the link of were I got the information from but it was from class room I just put the things together and posted it here so people will see and not be ignorant of there actions when dealing with crypto because like I said earlier ignorance of the law is not an excuse.
You can’t say I didn’t know the law those not care if you no or not.


#LegalMind

[Cryptomultiplier]

I just want to add to what OP has already done with a follow-up on likely crypto currency related scams/offense and the punishment as well as fines attached to it in Nigeria currently:

For promotion of fake cryptocurrency schemes, the person found guilty may spend up to 10 Years in prison with possible options of fine in the amount of ₦20,000,000+
For offense of identity theft/impersonation, the guilty person may spend up to 10 Years in prison with a possible fine of about ₦7,000,000.
To be caught and prosecuted for electronic/online fraud may demand the guilty person to spend 3 to 7 Years with options of fine in the amount of ₦7,000,000 to ₦10,000,000.
For a case of money laundering via Crypto, the person guilty has to spend 7 to 14 Years in prison with possible fine which may vary based on the amount involved and double of it.

The government of this country is very much aware about crypto currency and the kind of scams it can be used to perpetuate, that's why I find this post helpful to those who feign ignorance because crypto scams are prosecuted under a combination of bodies that stand under cybercrimes prohibition, prevention Act, advanced fee fraud and other fraud related offenses Act, and the ISA Act which was recently signed in '25 meaning investment and securities Act.
The EFCC is also involved with upgrades in Blockchain forensics to track and prosecute offenders.
Be wise, stay guided because ignorance isn't an excuse.

[Rockson1]

OP just as jutinlamode has said, there should be link attached please, though you've done a good job but there should be link to information s like this, don't forget next time, what I have to say about this is that, sometimes I feel that laws like this are only for people without level or perceived enemies of the people at the present leadership, wether anyone like it or not Nigerian government knows how to twist things, but I will be the happiest person if the government of our country will take this cryptocurrency scams very seriously and act according strictly to this punishment when tried and found guilty of the outlined criminal acts.

[Hypnotizer]

OP just as jutinlamode has said, there should be link attached please, though you've done a good job but there should be link to information s like this, don't forget next time, what I have to say about this is that, sometimes I feel that laws like this are only for people without level or perceived enemies of the people at the present leadership, wether anyone like it or not Nigerian government knows how to twist things, but I will be the happiest person if the government of our country will take this cryptocurrency scams very seriously and act according strictly to this punishment when tried and found guilty of the outlined criminal acts.

The OP already said he didn’t saw or learn this from any online source, as he said he learnt it from his classroom as a Law student so I don’t see the need for any link to source attached to the post. If anyone developed some more interest to know more about this penalties and Punishment for Crypto related scams in Nigeria, he can Do his own research to learn more about it.

Basically since we  know say the nah dem dey  make this law and they make laws that favors them and if anyone of them should be  in any of this, he can walk free without much penalty, but this isn’t something that happens just with cryptocurrencies or cyber related offenses, it happens everywhere.

[Joy_learns_crypto]

If you are caught for scam you will be punished and if you scam people through cryptocurrency you will still be punished under criminally taking funds away from people.
Anyone that is involved in cryptocurrency scam business is not ignorant of the law that if they are caught they can be punished for that.
Cryptocurrency scam is a financial crime and anyone caught doing it will be punished.

[Itz-prisigold]

Thank you for bringing this information but I would suggest you add some links to your post to avoid breaking forum rules. A lot of us do not know of some of these laws you mentioned since there is no clear crypto framework in Nigeria but seeing them outlined here makes much sense. Assuming the authorities will be able to enforce this, that would have served as a deterrent to scammers that are in large number in Naija. Most of the scams you here about are done through cryptocurrency, these punishments will help a lot.

Yes, you are right, and I appreciate this suggestion. In a discussion like this, once you mention laws and punishments like this and since people don't really know about it, it will be more better to back it up with proper source so that people can just verify it by themselves.

The reason why this topic is a bit confusing is because Nigeria does not really have any law that specifically called a crypto scam law, so it's very easy for people to think that there are no clear consequences. People need to remember, however, that when a crypto scam occurs, authorities fall back on some existing laws like the Cyber Crimes Act, the Money Laundering Act, and the Investments and Securities Act to handle all the crypto scam cases.

People tend not to make this connection because crypto is not actually mentioned in these laws, but we have already seen the EFCC and the courts apply these laws to P2P crypto fraud and the laundering of crypto proceeds.

These are some links that you can go through, it might help you to make everything much clearer and easier to understand

SEC issues fresh warning against Ponzi schemes, urges Nigerians to report illegal crypto investment platforms
https://nairametrics.com/2025/04/24/sec-issues-fresh-warning-against-ponzi-schemes-urges-nigerians-to-report-illegal-crypto-investment-platforms/

https://www.premiumtimesng.com/news/top-news/812855-court-jails-man-for-fraud-involving-42000-n37m-in-crypto-other-money-laundering-proceeds.html?utm_.com

[Jubilee58]

This information is a good one and considering the number of Nigerians that are involved in the cryptocurrency business, to a reasonable extent this laws will definitely help in limiting cryptocurrency related crimes in Nigeria. From time to time we use to see cryptocurrency investors being attacked in one way or the other steeling people's investment. Like the forum members said, link to this rules should be provided for more clarity, and am still suggesting if there is any government report center to report cryptocurrency related crime and anyone in this forum is aware of it, I think it will be wise to share it here too so that if any cryptocurrency crime is committed we can easily report it to the appropriate authority, and punishment will be unleashed. With these disciplinary measures, cryptocurrency crime will reduce and investors mind will be at peace to some reasonable extent.

[Amphenomenon]

Thank you for bringing this information but I would suggest you add some links to your post to avoid breaking forum rules.

You are welcome.
Link for what exactly I’m a Nigeria law student I just shared some of the things I was taught, if I collected the information from online I would have put the link of were I got the information from but it was from class room I just put the things together and posted it here so people will see and not be ignorant of there actions when dealing with crypto because like I said earlier ignorance of the law is not an excuse.
You can’t say I didn’t know the law those not care if you no or not.


#LegalMind

Go to hear you are a law student and so I guess you are aware of the importance of stating references when making claims, it enhances credibility, aside from the fact that we are on the internet and not everyone will necessarily just accept this claim of you being a law student, after all anyone can lie about that.

Mind you I'm not calling you a liar but if you think about it you will understand my point that anyone can make a claim of such here. Regardless, I suggest you use the lecturer material or text book as reference especially if it is possible to get it online or you can simply do a research to get the links of your statement or claims which I think exist since I'm aware of them and governmental sites or so must have it.

[Mate2237]

This information is coming at the right time to me, and I will commend the OP for taking out time to do research and developing a thread like this. From what I can get from your thread is that when it comes to crypto related crime and offenses the punishment differs depending on the seriousness of the crime or offense that has been committed. This should help serve as a lesson to everyone who is on the  crypto space and especially those with criminal intentions about defrauding people of their monies to be aware that when you are cut  you will face the consequences of your actions.


But left for me I will say that all crypto currency related fraud should be categorized into one and there should be a prescribed punishment for it, because there is no wisdom in dealing with thesame crime with different punishment such as fine, imprisonment or even restitution.

[Supreme Donvic]

Thank you for bringing this information but I would suggest you add some links to your post to avoid breaking forum rules.

You are welcome.
Link for what exactly I’m a Nigeria law student I just shared some of the things I was taught, if I collected the information from online I would have put the link of were I got the information from but it was from class room I just put the things together and posted it here so people will see and not be ignorant of there actions when dealing with crypto because like I said earlier ignorance of the law is not an excuse.
You can’t say I didn’t know the law those not care if you no or not.


#LegalMind

Go to hear you are a law student and so I guess you are aware of the importance of stating references when making claims, it enhances credibility, aside from the fact that we are on the internet and not everyone will necessarily just accept this claim of you being a law student, after all anyone can lie about that.

I will use you to reply others that says I should put a source link I have replied someone about that already but it seems you people don’t have any idea what you are all talking about.
When you talk about adding a reference in law they say always back up your statement with an authority and those Act i mentioned is my authority that is backing my argument of the laws we have in Nigeria that can be used to punish people who scam using cryptocurrency or involved in cryptocurrency scam those Act are the only authority needed to be referenced or sited.
And i didn’t decide to review that I’m a law student it was because I needed to reply someone which lead to me reviewing that private part of my life.
When you are talking about any law in Nigeria the reference you should add is the Act that says what you are saying or the section of the constitution and I have done that.
Hope I have cleared you.


#LegalMind

[Callido]

Are the law functioning?

What about those operating several ponzi scheme, you want to tell me that after several investigations, they are unable to find the master minds behind every Ponzi scammers that has operated in Nigeria. My problem is not about the laws and punishments in the constitution, are we implementing those laws, or do we now have biased executives that cover crimes for part of the money.

[Jaycoinz]

Are the law functioning?

What about those operating several ponzi scheme, you want to tell me that after several investigations, they are unable to find the master minds behind every Ponzi scammers that has operated in Nigeria. My problem is not about the laws and punishments in the constitution, are we implementing those laws, or do we now have biased executives that cover crimes for part of the money.

This is a very good and important question to ask because it's very clear that the law isn't operational to any means and it's very clear as we can see it time and time without number yet the system fails to fetch the culprit involved especially for the ponzi schemes fiasco that keep happening time and time without any proper control to it. Sometimes these crimes are being paid off with the same money that is used for the scam.

[Fiatless]

So any crypto related businesses you are doing in Nigeria be very careful because if you are caught for scam you will be punished. Remember ignorance is not an excuse to the law.

Thank you for the enlightenment brotherly. This is why we should get the details of any project we intend to promote. You no go just hear say you go make big money come jump into a project without investigation. Many people don suffer for wetin dem no no because dem no do enough research about a product.  Na so my friend dey encourage me to promote one investment scheme way bi like ponzi scheme. I tell am say, I no fit because I no want enter sanko.

[adultcrypto]

Nigeria have fine laws in almost every area but the institutions that will ensure that the laws are enforced are very weak which us why it looks like there are no laws. Apart from this, there is too much compromise in the system that makes the judiciary docile ad that affects every other area. Assuming we have a judiciary that is active and unbiased,  many things would haven't spoilt and our institutions would be respected as they should. Politicians are to blame for the problem because they are those corrupting the entire system.

[Dr.Bitcoin_Strange]

So any crypto related businesses you are doing in Nigeria be very careful because if you are caught for scam you will be punished. Remember ignorance is not an excuse to the law.
   

That's right, but it is shameful that some persons, probably because of their influence and connection with politically exposed personnel, they escape punishment after defrauding a lot of money from the poor. Why I said it's shameful is because it looks like this law is only made for common man that doesn't have enough power and influence to escape the law.

 You might seem to be lost, wondering where I'm coming from but let me call your mind back to a few fraudulent Companies; MBA forex, CBEX, Chinmark group, swissgolden, loom Nigeria, etc. Most of them didn't actually get a punishment that is well deserving for their act of defrauding millions of naira from people.

[Agbamoni]

What you mentioned as penalties are not legally approved. The law enforcement (EFCC) is responsible to fight agaginst crime, yet all their victims are giving seperate punishment fromone another.

A penalty I am very sure of is that every asset you own due to a crypto scam will be seized by the government and automatically belongs to them. That I am sure of.

[SatoPrincess]

What you mentioned as penalties are not legally approved. The law enforcement (EFCC) is responsible to fight agaginst crime, yet all their victims are giving seperate punishment fromone another.

A penalty I am very sure of is that every asset you own due to a crypto scam will be seized by the government and automatically belongs to them. That I am sure of.

Why do you use the word “victims”? In my opinion, the government agencies in Nigeria are cannot be trusted to protect the public and truly fight against crime. Their brand of justice comes with a price tag, those who can afford it get a slap on the wrist, while those who can’t get prison time.

[HajiBagi]

Thanks for passing this important information, but did you think the court that is punishing those who are caught for scam is in Nigeria? Because is if you look at our government for the past two years now they see anyone who is into crypto as a scammer, the reason why i said that is because our leaders had done everything to make sure they cancel anything that concern crypto because they think it is the problem of the country, our leaders had done, the president and the government don’t see anything good about crypto.

Another reason why i still don’t believe in those court is because of corruption, anything in this country is corrupt, they are the ones that we will take the case to seek justice and at the end they will favour anyone who has money, if you want to win a case in Nigeria you should have money if not you are just stressing yourself for nothing, i don’t pray to get scam and take the matter because i will spend more than what they scam me and nothing good will come out at the end.