Nigerian Crypto Launderer Admits Guilt: $2.5M Stolen from US Victims
Crypto crime hits another grim milestone as a Nigerian national cops to laundering millions.
From scam to slammer: The defendant’s plea exposes the dark underbelly of digital asset exploitation—proving even decentralized finance isn’t immune to old-school fraud.
Follow the money (if you can): While blockchain promises transparency, this $2.5M heist shows how quickly crypto can vanish into jurisdictional shadows. Another win for 'trustless' systems—unless you're the one holding the empty bag.
Wall Street bankers watching this unfold between martini lunches: *slow clap* for crypto’s 'disruptive' approach to financial crime.
Romance Scam Money Laundering Network Tied to Crypto
According to court documents, the scheme ran from 2016 to 2019 and involved six U.S. victims. The individuals were recruited through social media and dating platforms and persuaded to send money under false pretenses, such as medical emergencies or legal fees.
Authorities said one Massachusetts victim unknowingly received funds from five others and then transferred the money to Nwadavid via cryptocurrency.
The transactions were processed through LocalBitcoins, an online peer-to-peer platform. Nwadavid allegedly directed the transfers while abroad using online access credentials.
He was indicted in January 2024 and arrested in April 2025 upon arrival at Dallas-Fort Worth International Airport from the United Kingdom.
Security Company Accused of Moving $123M via Crypto
Australian authorities recently charged four people in connection with an alleged A$190 million (~US$123 million) laundering scheme involving cryptocurrency and a Gold Coast security firm. The group moved illicit funds through courier services and converted them into crypto, blending them with legitimate business revenue.
The network used dead drops in multiple cities and air transport to MOVE cash into Queensland. Some of the funds were funneled through a car dealership and a sales promotion company.
Authorities seized around A$21 million (~US$13 million) in assets, including 17 properties and several vehicles, and carried out 14 search warrants in Brisbane and the Gold Coast.
Law enforcement agencies are expanding cross-border coordination and blockchain surveillance to track crypto-linked fraud. Peer-to-peer platforms and foreign exchanges often limit recovery, especially when victims are used to move funds unknowingly.
Authorities warn that enforcement tools are still catching up. While blockchain data offers visibility, gaps in regulation and technical capacity continue to hinder timely intervention.
Frequently Asked Questions (FAQs)
How was the scam structured across multiple victims?Victims were recruited separately, but one was used to channel funds from others. This layering technique helped obscure the source and destination of the money.
What sentencing could Nwadavid face?He faces up to 20 years for each count, as well as fines, restitution, and deportation following any sentence.
Are romance scams increasingly linked to crypto?Yes. Law enforcement has observed a growing trend of using cryptocurrency to launder proceeds from relationship-based fraud.
