Court jails two Chinese nationals over cyber-terrorism, N3.4bn fraud

The Federal High Court in Lagos has convicted two Chinese nationals, Huang Haoyu and An Hongxu, for cyber-terrorism and a N3.4 billion fraud linked to cryptocurrency, investment and romance scams.

Justice Daniel Osiagor delivered the judgment on Wednesday after the defendants changed their pleas from not guilty to guilty during the proceedings.

The court sentenced each man to a cumulative 46 years in prison, with an option of a N56 million fine. They were also ordered to perform three days of community service and to be repatriated to China after serving their sentences.

Huang and Hongxu were arrested on 19 December 2024 during an EFCC operation in Lagos that led to the apprehension of 792 suspected cybercrime operatives. The operation, code-named “Eagle Flush,” targeted networks involved in online financial scams.

They were arraigned alongside Friday Audu and Genting International Co. Ltd. on seven counts of cyber-terrorism, internet fraud and money laundering involving N3,407,824,740.78 and $2,562,203 allegedly traced to the syndicate.

At Wednesday’s hearing, defence counsel Bridget Omateno informed the court that Huang and Hongxu wished to change their pleas. After the charges were re-read, both men admitted guilt. Mr Audu maintained his plea of not guilty, and his trial was adjourned to 29 April.

Prosecuting counsel Bilikisu Bala-Buhari had urged the court to impose the maximum penalties provided by law.

According to the EFCC, the defendants recruited Nigerian youths to pose as foreign nationals on online platforms to defraud victims through cryptocurrency investment and romance schemes. Investigators alleged that the operation was structured to access computer systems in ways capable of destabilising Nigeria’s economic and social systems.

The offences contravene provisions of the Cybercrimes (Prohibition, Prevention, etc.) Act, 2015, as amended in 2024, and the Money Laundering (Prevention and Prohibition) Act, 2022.

The EFCC also alleged that between August and December 2024, the defendants retained N3.4 billion in a Union Bank account belonging to Genting International Co. Ltd., knowing the funds were proceeds of unlawful activities.

In a statement, EFCC spokesperson Dele Oyewale said investigations showed that Mr Audu incorporated the company at Huang’s direction to facilitate the scheme.

The court ordered the forfeiture to the Federal Government of items recovered from four properties in Victoria Island and Ikoyi. The recovered assets include 1,596 mobile phones, 43 computers, 194 routers, a network server, thousands of SIM cards, 126 air-conditioning units, generators, vehicles, office furniture and bunk beds.

Earlier, Justice Osiagor granted Mr Audu bail in the sum of N50 million with two sureties, one of whom must be a serving director and property owner with verifiable title documents deposited in court. Bail had previously been denied to Huang and Hongxu after the EFCC argued they posed a flight risk.