The Economic and Financial Crimes Commission (EFCC) has initiated legal proceedings against Jesam Michael, CEO of Afriq Arbitrage System (AAS), over allegations of defrauding investors of approximately 87 million. Michael was arrested by the Nigeria Police Force at Murtala Mohammed International Airport in Lagos on January 29, 2025, following an extensive investigation into the operations of AAS
AAS, which claimed to offer investors a 63.5% monthly return through cryptocurrency arbitrage trading, has been under scrutiny after numerous investors reported being unable to withdraw their funds for over 18 months. Despite promises of high returns, the platform allegedly operated without transparent trading practices or verifiable financial records.
Investigations revealed that Michael transferred assets recovered from a previous fraud case into his personal accounts, raising concerns about the legitimacy of his operations. Furthermore, he failed to provide credible evidence of the platform's trading activities or a viable plan to reimburse affected investors.
In response to the growing number of complaints, a petition demanding the refund of investors' capital has garnered significant support, highlighting the widespread impact of the alleged fraud.
The EFCC's lawsuit marks a significant step in addressing financial crimes in Nigeria's burgeoning cryptocurrency sector. Authorities urge affected individuals to come forward with information to aid in the ongoing investigation.
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