Crypto

'Disturbing surge in cryptocurrency fraud' led by young, tech-savvy Nigerian men

Published

1 year ago

January 1, 2025

Press Room

'Disturbing surge in cryptocurrency fraud' led by young, tech-savvy Nigerian men

New research shows 55% of cases involve American victims

SURREY, England — In an eye-opening study that sheds new light on the evolving landscape of digital financial crime, researchers have uncovered a striking pattern in Nigerian cryptocurrency fraud: all convicted perpetrators are male, and nearly two-thirds are under 30 years old. This revelation comes from recent research conducted through an unprecedented collaboration between academic institutions and Nigeria’s Economic and Financial Crimes Commission (EFCC).

The study arrives at a critical moment in global digital finance. Nigeria has emerged as the third-largest player in Bitcoin transactions globally, trailing only Russia and the United States, with cryptocurrency transactions reaching approximately $400 million. This surge in digital currency adoption reflects both opportunity and risk in Africa’s most populous nation, where only 36.8% of adults have access to traditional banking services.

“Our research reveals a disturbing surge in cryptocurrency fraud,” says study lead author Dr. Suleman Lazarus, a cybercrime expert at the University of Surrey, in a statement. “We’re observing a rising generation of young, tech-savvy male offenders who adeptly exploit digital platforms and cryptocurrencies to perpetrate high-stakes fraud.”

The research, published in Current Issues in Criminal Justice, reveals a clear geographical targeting pattern, with 55% of cases involving American victims. This international reach demonstrates how digital currencies have transformed the scope and scale of financial crimes, enabling fraudsters to operate across borders with unprecedented ease.

What makes these findings particularly intriguing is the fraudsters’ educational background. Despite the technical nature of cryptocurrency transactions, only a quarter of convicted fraudsters held university degrees, challenging assumptions about the expertise required for such crimes.

The digital toolbox of these fraudsters primarily consists of mainstream social media platforms. Facebook emerged as the preferred platform, used in 27% of cases, followed by Gmail at 22% and Instagram at 14%. These familiar platforms serve as hunting grounds where fraudsters establish trust before executing their schemes.

The financial scale of these operations is staggering. While some cases involved modest sums around $1,000, others reached heights of $475,000 in cash, with one case involving 1,200 Bitcoin – approximately $81.96 million. These figures underscore the lucrative nature of cryptocurrency fraud and its potential for devastating financial impact.

Bitcoin dominates as the preferred cryptocurrency for fraudulent activities, featuring in 46% of cases. This preference likely stems from Bitcoin’s decentralized nature and the relative anonymity it provides, presenting significant challenges for law enforcement in tracking and recovering stolen funds.

“As cryptocurrencies continue to gain popularity, our research serves as a wake-up call for law enforcement agencies, policymakers, and the general public to remain vigilant against the evolving threats in the digital financial landscape,” warns Dr. Lazarus.

The study illustrates how Nigerian cybercrime has evolved from traditional advance-fee scams to sophisticated cryptocurrency operations, reflecting broader changes in global financial systems and highlighting criminal enterprises’ adaptability. In a digital age where cryptocurrency promises financial inclusion and opportunity, this research serves as a crucial reminder of the shadow economy emerging alongside legitimate digital finance.

Paper Summary

Methodology

The study employed a structured approach, examining court records and case files of convicted cryptocurrency fraudsters from two major EFCC commands in Nigeria. Researchers analyzed 22 cases, documenting the fraudsters’ methods, preferred platforms, victim locations, and financial gains. This approach provided verifiable data from official sources, though it necessarily focused only on cases that resulted in convictions.

Results

The findings paint a clear picture: all convicted fraudsters were male, predominantly under 30, with relatively low formal education levels. They primarily used social media platforms, with Facebook being the most common tool. Most targeted American victims, using Bitcoin as their preferred cryptocurrency. Financial gains varied significantly, demonstrating the range of schemes employed.

Limitations

The research faced several constraints. The sample size of 22 cases, while providing valuable insights, represents only convicted cases, potentially missing more sophisticated operators who evade detection. Additionally, the focus on two EFCC commands might not represent the entire country’s cryptocurrency fraud landscape.

Discussion and Takeaways

The research reveals an urgent need for international collaboration in combating cryptocurrency fraud. The predominance of young male offenders and their focus on American targets suggests a need for targeted intervention strategies and enhanced cross-border cooperation in law enforcement.

Funding and Disclosures

The study, conducted in collaboration with Nigeria’s EFCC, underwent ethical clearance from both the University of Portsmouth (clearance number 1110) and the EFCC. The research team reports no conflicts of interest, with one author’s EFCC employment providing valuable access to case files while maintaining ethical research standards.

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Crypto

Decade-Old Bitcoin Wallets Reemerge and Shift $37 Million as BTC Hits 2026 Low

Published

9 hours ago

June 6, 2026

Press Room

Decade-Old Bitcoin Wallets Reemerge and Shift Million as BTC Hits 2026 Low

Key Takeaways

Ancient Bitcoin 2014 Wallet Stirs

A dormant bitcoin ( BTC) address, first seen on Nov. 12, 2014, and untouched ever since, transferred 165.50 BTC this week at block height 952452. After remaining inactive for more than a decade, the Pay-to-Public-Key-Hash (P2PKH) address reemerged onchain, moving its holdings in a single transaction. The owner decided to move this cache amid bitcoin’s latest price downturn as BTC tapped the lowest value of 2026 on Friday.

At the time, the address‘s entire stash of 165.50 BTC was valued at just $60,738. Even after bitcoin’s recent pullback, those same holdings are now worth approximately $10.2 million, illustrating the dramatic 16,693.44% appreciation accumulated during more than a decade of dormancy.

The 2014 wallet that moved 165.50 BTC. Image source: Mempool.space.

The funds migrated from the original P2PKH wallet through a series of newly created Pay-to-Witness-Public-Key-Hash (P2WPKH) addresses before ultimately settling in a P2WPKH address that now holds 204.67 BTC, valued at approximately $12.6 million.

Two 2017 Addresses Shift 434.26 BTC

Following the 2014-era transfer, two wallets dating back to 2017 moved a combined 434.26 BTC. The first transaction took place at block height 952454, transferring 115 BTC valued at approximately $7.1 million from a P2PKH address created on May 9, 2017. The second wallet shifted 319.26 BTC, worth roughly $19.7 million, in a separate transfer. That address too, was first seen on May 9, 2017.

Btcparser.com image of three dormant bitcoin transfers. — The three large and dormant wallets that moved on June 5, 2026, for the first time since the addresses were first funded and created.

On that day, 9 years and 26 days ago in 2017, BTC was trading at $1,709 per coin, placing the value of the holdings at a fraction of their current worth. The latest movements add to a growing list of dormant-era wallets that have resurfaced in 2026, often drawing attention from onchain analysts and market observers.

Onchain Trail Reveals Movement, Not Motive

While the transfers coincided with bitcoin’s recent price weakness, the transactions themselves offer no indication that the coins were sold, as the funds remain visible in newly assigned addresses. However, they may have been offloaded to an over-the-counter (OTC) desk or temporary address from a custodian.

Of course, the identities behind the wallets and the motivations for awakening holdings that sat idle for nearly a decade remain unknown.

Crypto

Nevada attorney general warns of cryptocurrency kiosk scams

Published

20 hours ago

June 6, 2026

Press Room

Nevada attorney general warns of cryptocurrency kiosk scams

CARSON CITY, Nev. (FOX5) — Nevada Attorney General Aaron Ford is warning residents about a growing scam involving cryptocurrency kiosks found in gas stations and convenience stores.

The machines, commonly called Bitcoin or crypto ATMs, convert cash into digital currency that can be sent to unknown third parties. The transactions cannot be reversed and are nearly untraceable, making it extremely difficult to recover stolen money.

Scammers typically begin with an unsolicited phone call, text, email or pop-up message that creates a sense of fear and urgency, Ford’s office said. The criminals often impersonate someone the victim would trust, such as a relative or representative of a legitimate organization. They claim an emergency exists that can only be resolved by depositing funds into a cryptocurrency kiosk.

MORE ON FOX5: Scam alert: Fake jail calls, bank spoofing on the rise across Nye County

The scammer then provides instructions about how to complete the transaction, which sometimes include a QR code associated with the scammer’s digital wallet.

According to FBI data cited by AARP, cryptocurrency kiosk scams disproportionately impact older adults. In 2025, cryptocurrency kiosks were used in scams that led to more than $389 million in reported losses.

“One of the most important ways to protect yourself from scams is to stay informed — scammers are consistently changing their tactics to fool you in new ways,” Ford said. “If a person asks you to use a cryptocurrency kiosk to transfer money, stop and consider if the interaction feels above board. When in doubt, follow your gut.”

Nevadans who believe they may have been victims of a scam, including one involving cryptocurrency kiosks, can file a complaint with the Office of the Attorney General.

Crypto

Bitcoin Slides Below $60K as Traders Trigger $1.57B Liquidation Wave Across Crypto

Published

1 day ago

June 5, 2026

Press Room

Bitcoin Slides Below K as Traders Trigger .57B Liquidation Wave Across Crypto

Key Takeaways

Liquidations Pass the Billion-Dollar Mark

Bitcoin plunged below $60,000 on Friday amid a market-wide sell-off that shaved approximately $200 billion from the crypto economy. According to Bitstamp data, the cryptocurrency nosedived to $59,743, briefly widening its losses since June 1 to more than $14,000—a decline of nearly 20% in five days.

While it bounced back to $61,000 shortly after tapping the new year-to-date low, the cryptocurrency was still down by nearly 4% in 24 hours. The drop widened bitcoin’s year-to-date losses to 30% and briefly pushed its market capitalization below $1.2 trillion, a level last seen in October 2024. The bearish sentiment extended to altcoins, some of which logged double-digit losses, driving the crypto economy’s aggregate market cap down to $2.23 trillion.

Meanwhile, the market mayhem pushed liquidations past the $1 billion mark for the fourth time in five days. As expected in a declining market, long bets accounted for a disproportionate share of the leveraged positions erased, making up $1.28 billion of the $1.57 billion total. Bitcoin alone saw $381 million in long positions wiped out, compared with $111 million in shorts.

While a handful of critics attribute bitcoin’s downward spiral to Strategy’s disposal of a mere 32 bitcoins, market analysts argue the scale of the capitulation points to deeper structural vulnerabilities. The sheer velocity of the sell-off suggests a broader institutional exit and systemic liquidations that far outweigh the ripple effects of an otherwise negligible corporate divestment.

However, this alternative view did not stop “Mad Money” host Jim Cramer from accusing Strategy Executive Chairman Michael Saylor of “murdering bitcoin.” Saylor, facing criticism stemming from the sale, responded by publishing a comprehensive essay on X detailing what he calls the “Four Ideologies of Bitcoin.” In the essay, Saylor argues that as bitcoin transitions from a technical experiment to a global asset, its community is dividing into four distinct yet overlapping schools of thought that define its future.

The Four Ideologies of Bitcoin

The first school of thought, championed by maximalists, views bitcoin as a moral and civilizational advance. They emphasize its role as the dominant, incorruptible digital monetary network that provides superior property rights and economic hope to those facing financial misery.

Capitalists, on the other hand, focus on scaling bitcoin by integrating it as “digital capital” into global financial systems. This group advocates for corporate treasuries, institutional custody, and bitcoin-backed credit and securities, arguing that market incentives will ultimately drive the network’s growth and defense.

Saylor identifies technologists as a group that believes the protocol must responsibly and continuously evolve to address future technical threats, such as quantum computing, while improving base-layer privacy, scalability, and usability.

Lastly, the Strategy chairman sees fundamentalists as the guardians of bitcoin’s first principles, such as absolute decentralization, self-custody, running personal nodes, and censorship resistance, aiming to protect the protocol from institutional capture or dilution.

Saylor concluded his essay by arguing that a healthy bitcoin ecosystem requires a synthesis of all four groups. Rather than choosing between purity and adoption, Saylor noted that the network’s ultimate path forward relies on keeping the core protocol sacred and stable while allowing the global economy to build on top of it.