Nigerians lose millions in crypto Ponzi schemes

• As Nigeria’s economy is failing under the present administration, the citizens are looking for new ways to make quick profits.
• The regulatory authorities in the nation have been silent and are unable to take corrective actions to protect investors against crypto fraud.

According to local Nigerian news reports, the nation’s law enforcement authorities are helpless as large-scale fraudulent crypto companies have been taking advantage of millions of unsuspecting citizens. As Nigeria’s economy is failing under the present administration, the citizens are looking for new ways to make quick profits. However, this has only resulted in them losing the little money they had. 

Reportedly, the firms that have appeared to be genuine are, in fact, Ponzi schemes. A few owners of these schemes have told investors that they generate revenue by speculating on the price movement of cryptocurrencies via a CFD trading account. Others have claimed that they profit from purchasing and selling different assets through exchanges.

The regulatory authorities in the nation have been silent and are unable to take corrective actions to protect investors against fraud. Anthony Ogbo, a cybersecurity expert, said that the government should create an efficient financial system and regulation to accommodate crypto. He noted that until this happens, investors will continue to fall victim to scams. 

Unfortunately, we lack the ability to keep up with the fast-changing digital space. And the authorities are not helping matters; they are so lethargic.

It appears that the Nigerian Police know very little about cryptocurrencies and blockchain technology. Binus Yaro, one of the victims of these Ponzi schemes, said that he did not get any justice after filing a complaint with the police after he had been scammed.