EFCC Charges Crypto Platform Afriq Arbitrage System with Unlicensed Operation and Fraud

The Economic and Financial Crimes Commission (EFCC) of Nigeria has filed criminal charges against cryptocurrency trading platform Afriq Arbitrage System (AAS) and its CEO, Jesam Michael, alleging their involvement in an unlicensed investment scheme that defrauded investors of over $844,000, $10,000, and ₦590 million. 

According to the EFCC’s investigation, the alleged fraudulent activities took place between September 2022 and June 2023. During this period, Michael and his company were charged with soliciting public investments without securing authorization from the Central Bank of Nigeria (CBN) or any recognized financial regulator.

Authorities claim AAS marketed itself as a secure investment opportunity, enticing individuals to deposit funds with assurances of guaranteed returns and instant withdrawals. One of the charges specifically accuses Michael and AAS of misleading an investor into transferring $844,416.36 in USDT, based on false assurances regarding the security and recoverability of the funds.

The EFCC asserts that Michael was aware these claims were false. In addition to fraud-related charges, the commission has accused the defendants of operating within the financial services sector, including investment management, without the necessary licensing.