Nigerian Police Arrest Seven, Trace ₦3.6bn in Crypto-Linked Cybercrime to Bybit P2P

What To Know:

• Nigeria’s National Cybercrimes Centre (NPF-NCCC) arrested seven suspects across multiple, separate cybercrime investigations.
• One case traced roughly ₦3.6 billion in alleged fraud proceeds, converted into USDT via peer-to-peer trades on Bybit.
• The crypto-linked case centres on a tech company owner accused of laundering funds from an alleged international investment fraud scheme.
• The other arrests (business email compromise, impersonation, SIM fraud) are related NPF-NCCC cases disclosed at the same time.

What Happened

On 26th August, Akaninyene Ezima, Assistant Inspector-General in charge of the Nigerian Police Force National Cybercrimes Centre, announced the arrest of seven individuals linked to cyber-related offences, including a ₦3.6 billion cryptocurrency laundering operation. 

The Case

The AIG confirmed that the suspects were arrested on the 13th of August 2026 at Agiliti, Lagos. The arrest was made following a petition by Ugwu Francisca & Co on behalf of complainants Elizabeth and Prince Iruaregbon.

The complainants, via the petition, allege that they lost over 56 million naira after they were convinced to invest in a WhatsApp-based stock trading platform that promised high returns. 

The suspect admitted to running a technology company called Kestart Technology, which police alleged was used as a front to convert the proceeds from the fraud.

Examination of the suspect’s company account with Save Heaven Microfinance Bank showed terminal cash inflows and outflows of 3.2 billion naira between October 30th 2025, and May 31, 2026.

The investigation also revealed that the suspect converted an estimated 3.6 billion naira of fraud proceeds to USDT via Bybit P2P transactions. The suspect is reported to have confessed to engaging in P2P crypto trading on Bybit. 

Modus Operandi: From WhatsApp Investment to Bybit P2P

The scheme follows a familiar pattern. Victims are lured into fake high-yield investment schemes, in this case a WhatsApp Stock Trading platform. 

Once the victims transferred their funds, the suspect likely used Kestart Technology and accounts at Save Haven Microfinance Bank to consolidate the cash.

Microfinance infrastructure often provides rapid transaction speeds and high daily limits. For high-volume fraud operations such as this, it is an attractive channel.

​To complete the laundering process and move the funds beyond the reach of local enforcement, the suspect systematically converted the naira proceeds into Tether (USDT). Criminals are often under the false assumption that transactions involving cryptocurrency cannot be traced. 

The suspect likely routed transactions through Bybit’s P2P marketplace to create a complex web of transactions intended to break the paper trail back to the original victims.

The fraud followed the typical setup, and crypto only enters the conversation as an off-ramp for the fraud funds.

The Other Suspects

In a separate raid dubbed “Operation Broken Mask,” police arrested another suspect on July 20 in Lekki, Lagos, in connection with an alleged business email compromise scheme.

The investigation was jointly conducted with Germany’s Federal Police and the Royal Canadian Mounted Police after forensic analysis reportedly uncovered more than 12.5 million victim email logs across 50-plus countries.

In Anambra State, two suspects were also arrested over alleged identity theft and impersonation unrelated to crypto.

Where the Actual Chokepoint Sits

The fraud didn’t involve an on-chain hack or obfuscation. The suspect didn’t use mixers or cross-chain bridging to move money undetected. They relied on the mechanics of P2P trading. 

Bybit itself isn’t accused of any wrongdoing here, and P2P trading functioned exactly as it’s meant to, which is a marketplace connecting a buyer and a seller directly. With P2P, the platform facilitates rather than custody-controlling the trade.

P2P trading, which is popular in Nigeria, comes with a high risk of scams. This could arise in the form of third-party fraud where a buyer pays you via stolen funds or a stolen bank account.

What’s Next

Police say investigations are ongoing and suspects will be prosecuted once complete, with charges potentially falling under Nigeria’s Money Laundering Act, Cybercrimes Act, and Advance Fee Fraud Act.

Authorities also said they intend to pursue forfeiture of funds and associated crypto assets, with a stated goal of facilitating restitution to victims where possible.