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- The firms gamble on the movement of the price of cryptocurrencies through the CFD trading account, and also, they trade the underlying coins via exchanges.
- It is estimated that hundreds of millions of Naira have been suffered losses.
- A significant lawyer Chuks Arubaleze notified that cryptocurrency scams are present danger which may become difficult to control if something serious action is taken to foreclose them.
Cryptocurrency scams are now knocking the door of Nigeria. These fake firms are asserting to offer digital currencies on a large scale to Nigerians. On the other hand, the monetary authorities and law enforcement agencies seem powerless.
How these firms act?
The firms gamble on the movement of the price of cryptocurrencies through the CFD trading account, and also, they trade the underlying coins via exchanges.
These schemes are Ponzi or pyramid schemes whose activities extent various illegal offences such as money laundering and terrorism, human trafficking, drug trafficking, and support for radical movements.
It is estimated that hundreds of millions of Naira have been suffered losses. As the Nigerians are keen to escape hitting economic hardship, these scams offering them digital currencies buffet.
What do the experts say?
A cybersecurity expert Anthony Ogbo cautioned that losses will continue to ascend unless financial regulatory authorities develop a tough financial system and regulation that will adopt cryptocurrency.
Exploiting weak regulations and the inability to sustain with the false promise of technology, it is too hard for the firms to resist the dangle.
A significant lawyer Chuks Arubaleze notified that cryptocurrency scams are present danger which may become difficult to control if something serious action is taken to foreclose them.
Further adding to this Arubaleze stated that these scams carry all the qualities of bank fraud, wire fraud and processing unauthorized money transfer. If the authorities are serious to take stem measures, it will be enough to begin to crack down on the operators.
A victim of one of the schemes Binus Yaro said that even after making an official complaint to the Nigerian Police about this issue he could not justice. As per Yaro, the police did not invite the promoter of the scheme.
Like many other victims of the scams, Yaro was offered by a fraudulent firm through the telegram chat group. He was then assured that once the payment was made, he will get 100 interest within an hour. Yaro continued to make the payment and notified the firm, which in return demanded additional money to multiply his initial investment.
When Yaro requested to give the returns as it was a one-off investment, the firm did not answer him till today and also, removed him from their group.
In Nigeria, the situation of cryptocurrency is uncertain. However, the Securities and Exchange Commission (SEC) and Central Bank of Nigeria (CBN) have issued very strong notices about the drawbacks of investing in the crypto markets.
