Nigeria SEC proposes 10 Years Jail Terms For Crypto Ponzi Scheme Operators

[Ishicryptic]

This is a good step in the right direction for our SEC to protect innocent Nigerians from these scam projects that our celebrities and other criminal minded persons with the intentions of scamming their fans and others that are not knowledgeable about cryptocurrency, that it is a hub for scammers. But my worry is the same as most members that have commented on this thread, our main problem in this country is not enacting laws but the execution of the laws and from my observation in this our country, laws are meant for the ordinary citizens. We've seen cases where the high and might will commit crime and nothing will happen to them but if an ordinary person commits less than that crime, the full weight of the law will come down on the person.

This move by SEC will go a long way to sanitize the crypto space in Nigeria, so that people will not label every cryptocurrency as scams, that is if every offenders are punished I hope that the proposed law will be passed by the legislatures and our judiciary will have the intergrity to prosecute whoever is found guilty, no matter the position of the person in the society, that is the kind of action that will deter Nigerians with criminal intentions to scam people.

[Orpichukwu]

~snip~

Because we believe there is no active law in the country and they don't punish the offenders, and judgement is always biased, that does not mean that we should not have those laws set in the first place.

one thing I know for sure is that we can not always be getting expected result from all cases but every criminal can't go scort free and if their is existing laws then what's needed is to be pressured, this is not just common here in Nigeria but also in other countries their are some elite which are protected they get punished for their crimes but not to the extent we might want

[Felicity_Tide]

Earlier this year, some celebrities and prominent personalities launched pump and dump token, Ponzi schemes to defraud their followers and other innocent Nigerians, taking advantage of the country's current economic circumstances to steal millions of Naira from investors to fund their lavish lifestyle. The Nigerian Securities and Exchange Commission has proposed a bill to the Senate that would require convicted Ponzi scheme operators to serve a 10-year jail sentence and pay N20 million. This is a courageous step to protect our crypto space and further stop tarnish the reputation of the crypto community in Nigeria.

What do you guys think about the new bill proposal? Will it scale through or abandoned just like the old proposed bill under Buhari Govemment.

Here we go again!. Another news headline that puts the Nigeria security and exchange commission in front of all newspapers. We all know that every law and bill that has been brought and passed in this country are always one sided, and doesn't governed everyone in the country. Okay fine, the Senates finally approve the bill, will the davido and sabinus incident be raised?, Or the SEC will treat them as old cases and start a fresh job?.

The real people that we are losing billions of naira to are just there. I think this bill won't make any changes.

[Zigabel]

while only the immediate past CBN governor Emefiele stole billions in the naira redesign policy and is living large while the case against him is as good as dead. Justice in Nigeria is compromised and the less influential are made to face the law while we keep seeing big players being above the law and escaping justice from time to time and there is no guarantee that this law being vetted now would clamp down top musicians or influencers or even politicians who already has influence in the government and bring them to justice.

Pumping and dumping coins  and promoting ponzi schemes is a normal thing now in Nigeria, but it is important to note that these schemes are backed by some notable big boys undercover. I was discussing about these pump and dump schemes with a friend and he advised me to create a coin if I can and bring $5000 for promoting it, he mentioned to me that he knows some big boys that can invest $30000 each into it so that we can pump it and dump when significant investments starts coming in. I had to reason from two angles immediately, the guy might be an instant scammer looking for an opportunity to scam me of $5k or there might be some really big players out there financing these schemes from their hideouts and I doubt the law can catch up with them. Scamming now is done from many angles and even if the small players are brought to justice, these big players undercover would still continue the bad job and constantly escape justice with their influence.

In as much as I wouldn't support any form of illegalities and fraudulent before regardless of the magnitude, I don't support this idea of having the small boys and probably less privileged to suffer he full wrath of the law probably because they cannot afford a good lawyer or they happen to have almost no influence in the society so anything can be done to them and they be used to set as examples to others meanwhile we know the obvious ones who are extorting the nation and stealing from the national reserve for their own personal benefits yet they don't get jail terms but to continually appear in court till the case is thrown away, such a sad and biased justice system.

[Franctoshi]

Earlier this year, some celebrities and prominent personalities launched pump and dump token, Ponzi schemes to defraud their followers and other innocent Nigerians, taking advantage of the country's current economic circumstances to steal millions of Naira from investors to fund their lavish lifestyle. The Nigerian Securities and Exchange Commission has proposed a bill to the Senate that would require convicted Ponzi scheme operators to serve a 10-year jail sentence and pay N20 million. This is a courageous step to protect our crypto space and further stop tarnish the reputation of the crypto community in Nigeria.

https://www.google.com/amp/s/nairametrics.com/2024/11/18/nigerian-crypto-industry-endorses-bill-proposal-to-jail-ponzi-operators/%3famp=1

What do you guys think about the new bill proposal? Will it scale through or abandoned just like the old proposed bill under Buhari Govemment.

I became worried when I saw this trend gradually scaling up, because this would have painted Bitcoin and crypto Business in Nigeria so badly if this trend had continued, and where it would have given birth to many different scams, and where this may lead to clear reason for the agency in charge to now place permanent ban on crypto transactions in Nigeria. I could recall one big name celebrity that got involved in this scam coin,  this celebrity don't in any way have the suffering masses at heart, they're only concerned about how they would enrich their pockets, But thanks to the SEC for doing their job by swinging into action when it was supposed. This is the sole reason for that commission.

[nelson4lov]

~Snipped
[...]

I get your point and doubt the culprits will be punished even though the bill has just been introduced and already approved. I welcome the passage of a bill and the establishment of a judicial process that will prevent future criminals from launching bogus Ponzi schemes to defraud. Eminent persons and celebrities have tarnished the image of the country along with themselves by involving themselves in lucrative projects and they should be properly punished and those who have been cheated should be given proper compensation.

It is true that the administration has a lot of leeway in taking legal action against prominent people and I expect that the bill will continue to be effective as it becomes law very soon.

Crypto investor confidence in the government should be further enhanced by ensuring the protection of the crypto space and the protection of investors from fraudsters.

The "law" lol — if we're all being honest it only happens to the poor man / average man. The rich are exempted from it or do you think someone like a top musician (whose name I won't mention) that have promoted countless ponzi schemes and scams in the past but didn't even get off with a slap on the wrist. Or is it the law against spraying of bank notes at parties that rich people still do and don't goto jail for? We have already forgotten Yamaha bello.

My point is, passing a bill like this is one thing, the implementation is never possible as long it affects all classes of people.

[Coyster]

Both of us know very well that these laws are just for the newbies in the industry and not in any way going to indict the big players, a clear-cut example is

This story no dey as people think am, many people no dey like read the full story before drawing their conclusion. Yes dem been sentence this student to 14 years imprison, but with an option to pay a fine of N200,000. We know say him go pay the fine, he was charged with 7 counts, so the judge give am 2 years on each count, but with the option of fine.

while only the immediate past CBN governor Emefiele stole billions in the naira redesign policy and is living large while the case against him is as good as dead.

You say Emefiele dey live large? Lol. When last you see am, he is looking like someone who has added 25 years to his age in just a few months. He is still in DSS custody and the case against him is not dead.

[Roseline492]

Earlier this year, some celebrities and prominent personalities launched pump and dump token, Ponzi schemes to defraud their followers and other innocent Nigerians, taking advantage of the country's current economic circumstances to steal millions of Naira from investors to fund their lavish lifestyle. The Nigerian Securities and Exchange Commission has proposed a bill to the Senate that would require convicted Ponzi scheme operators to serve a 10-year jail sentence and pay N20 million. This is a courageous step to protect our crypto space and further stop tarnish the reputation of the crypto community in Nigeria.

https://www.google.com/amp/s/nairametrics.com/2024/11/18/nigerian-crypto-industry-endorses-bill-proposal-to-jail-ponzi-operators/%3famp=1

Is a good move by the Nigerian security and exchange Commission to have seen the overview of the selfish interest of those celebrities in taking advantage of the vulnerable Nigerians who are looking for a way to survive the hardship, however I hope the government will implement it because this is the kind of bill that shouldn't be talking likely because it does not only protect the poor citizens but also the reputation of our beloved country in view of the world, actually is good they make this move so that the government will no those there motive are for scamming people and this measure will certainly reduce the scamming rate in the country because nobody would want to spend 10 years in jail.

[Asiska02]

What do you guys think about the new bill proposal? Will it scale through or abandoned just like the old proposed bill under Buhari Govemment.

I can’t recall that a bill like this was passed under the Buhari government but since we can’t see the impact of it and can see a rise in the number of Ponzi scheme in Nigeria today, that means that bill was never implemented. I really like this bold move taken by this administration to clamp down on this Ponzi schemes that celebrities are using as clickbait to lure their followers and those newbies into crypto space by scamming them of large amount of money. This is to say that the Nigerian government is aware of their scandals and how they earn money from people through this means.

They are actually tarnishing the image of cryptocurrency and any newbie that got into the space through this means and are scammed off their money, they may never trust or have anything to do with cryptocurrency because they’ll term it as an illegal or Ponzi scheme that people make money from which in the real sense it is never it. The Nigerian government have sent a big warning and it’ll go through to them, the influencers to think twice if they’re ever trying to do something like this again as it’s now a new trend for them. I hope the bill gets implemented and action is taken immediately on those found wanting of it.

[Justbillywitt]

This is a good move from the sec. I think the bill will pull through and will not be abandoned, because the politicians are not benefiting directly from the crypto Ponzi schemes that are perpetuated by these so called celebrities. You and I know the political class of this country very well, anything that's not benefiting them directly, they will make sure they bring it down. So I strongly believe that this bill will pull through and won't be abandoned. If this country can be coming up with meaningful bills as this one, I think we are heading on the right track. Because I wonder why the so called celebrities will lunch a coin just to defraud their loyal fans. But the problem is even if they sentence a celebrity for lunching a Ponzi crypto scheme, and the person is convicted. With the level of corruption in this country will the celebrity serve the jail term? Well let them do it for doing sake, at least it will reduce the influx of crypto Ponzi scheme in the country.

[laijsica]

Earlier this year, some celebrities and prominent personalities launched pump and dump token, Ponzi schemes to defraud their followers and other innocent Nigerians, taking advantage of the country's current economic circumstances to steal millions of Naira from investors to fund their lavish lifestyle. The Nigerian Securities and Exchange Commission has proposed a bill to the Senate that would require convicted Ponzi scheme operators to serve a 10-year jail sentence and pay N20 million. This is a courageous step to protect our crypto space and further stop tarnish the reputation of the crypto community in Nigeria.

https://www.google.com/amp/s/nairametrics.com/2024/11/18/nigerian-crypto-industry-endorses-bill-proposal-to-jail-ponzi-operators/%3famp=1

What do you guys think about the new bill proposal? Will it scale through or abandoned just like the old proposed bill under Buhari Govemment.

I became worried when I saw this trend gradually scaling up, because this would have painted Bitcoin and crypto Business in Nigeria so badly if this trend had continued, and where it would have given birth to many different scams, and where this may lead to clear reason for the agency in charge to now place permanent ban on crypto transactions in Nigeria. I could recall one big name celebrity that got involved in this scam coin,  this celebrity don't in any way have the suffering masses at heart, they're only concerned about how they would enrich their pockets, But thanks to the SEC for doing their job by swinging into action when it was supposed. This is the sole reason for that commission.

Some scammers are using celebrities' pictures to commit fraud on various token or gambling sites. If celebrities are involved in token fraud, they should be punished. Sometimes, if fraudsters have launched Ponzi schemes by using their pictures or videos, it should be investigated and innocent people should not be punished. Many prominent people on social media use pictures or AI videos to promote various tokens or crypto currencies and create inspiration among ordinary people and fall into the trap of fraud by investing. Social awareness is needed to protect your funds from the eye-catching ads spread on social media and you have a responsibility to keep the people around you aware of this.

Yes, the celebrity you are talking about is involved in this and this should be known to the crypto people in Nigeria and he is not sorry now. Enacting the bill introduced in the Senate soon to bring guilty ponzi scheme operators to justice could help prevent future crypto-related crimes.

[igebotz]

This story no dey as people think am, many people no dey like read the full story before drawing their conclusion. Yes dem been sentence this student to 14 years imprison, but with an option to pay a fine of N200,000. We know say him go pay the fine, he was charged with 7 counts, so the judge give am 2 years on each count, but with the option of fine.

Never seen anyone in Nigeria sentenced to jail for Internet fraud without an option of fine and the fines are always within 100k- 200k. Internet fraud cases are not as strict as other financial crimes cases like tax evasion and money laundering.

I can’t recall that a bill like this was passed under the Buhari government but since we can’t see the impact of it and can see a rise in the number of Ponzi scheme in Nigeria today, that means that bill was never implemented

This is the same bill, it was never implemented under the last administrator

[Lida93]

Earlier this year, some celebrities and prominent personalities launched pump and dump token, Ponzi schemes to defraud their followers and other innocent Nigerians, taking advantage of the country's current economic circumstances to steal millions of Naira from investors to fund their lavish lifestyle. The Nigerian Securities and Exchange Commission has proposed a bill to the Senate that would require convicted Ponzi scheme operators to serve a 10-year jail sentence and pay N20 million. This is a courageous step to protect our crypto space and further stop tarnish the reputation of the crypto community in Nigeria.

https://www.google.com/amp/s/nairametrics.com/2024/11/18/nigerian-crypto-industry-endorses-bill-proposal-to-jail-ponzi-operators/%3famp=1

What do you guys think about the new bill proposal? Will it scale through or abandoned just like the old proposed bill under Buhari Govemment.

Okay. First of this is a welcome development in the crypto ecosystem in Nigeria as I understand that this bill is not going to deter or reduce crypto scam schemes but will also encouraged more crypto investors into the market.

Unfortunately, Nigeria is known for its attractive laws but lacking in implementation according to the letter especially when it has to do with influential and wealthy personalities getting to fault the laws. You see a situation where a scammer scams the community of #100 million scam but is told to pay back #20 million as fine option.

I think the laws against crypto scammers would need to be given a different approach from other conventional laws and it should be strictly applied to send a strong message intending scammers and also make potential investors feel some sense of security within the space too.

[GiftedMAN]

Earlier this year, some celebrities and prominent personalities launched pump and dump token, Ponzi schemes to defraud their followers and other innocent Nigerians, taking advantage of the country's current economic circumstances to steal millions of Naira from investors to fund their lavish lifestyle. The Nigerian Securities and Exchange Commission has proposed a bill to the Senate that would require convicted Ponzi scheme operators to serve a 10-year jail sentence and pay N20 million. This is a courageous step to protect our crypto space and further stop tarnish the reputation of the crypto community in Nigeria.

https://www.google.com/amp/s/nairametrics.com/2024/11/18/nigerian-crypto-industry-endorses-bill-proposal-to-jail-ponzi-operators/%3famp=1

What do you guys think about the new bill proposal? Will it scale through or abandoned just like the old proposed bill under Buhari Govemment.

I became worried when I saw this trend gradually scaling up, because this would have painted Bitcoin and crypto Business in Nigeria so badly if this trend had continued, and where it would have given birth to many different scams, and where this may lead to clear reason for the agency in charge to now place permanent ban on crypto transactions in Nigeria. I could recall one big name celebrity that got involved in this scam coin,  this celebrity don't in any way have the suffering masses at heart, they're only concerned about how they would enrich their pockets, But thanks to the SEC for doing their job by swinging into action when it was supposed. This is the sole reason for that commission.

I acknowledge the actions taken by the SEC at least it will put an end to the series of scam that has been done by the celebrities in the country, the trend was going to affect crypto traders in the country and Bitcoin investors would have been affected more because when ever you talk about cryptocurrency in the country Bitcoin will always be mentioned in the mouth of the people because most of them only know Bitcoin as the only cryptocurrency.

As the cryptocurrency scam which more than two celebrities has promoted and used to scam people, I'm expecting the SEC to also implement laws against promotion of other fake news by the celebrities because millions of Nigerians has been scammed as a result of what the celebrities promote.

[Emjay24]

In as much as SEC newly proposed bill to the senate sounds interesting especially as it is channeled to put an end to Ponzi scam in Nigeria, we all know that if successful, will only be applicable to the poor masses. The main culprits will continue fearlessly as "they are above the law".

The senate on the other hand, will not even take it seriously because they are not benefiting anything directly from it, whilst the authorities responsible for punishing offenders will only see it as an opportunity to collect bribe.

[Coyster]

Never seen anyone in Nigeria sentenced to jail for Internet fraud without an option of fine and the fines are always within 100k- 200k. Internet fraud cases are not as strict as other financial crimes cases like tax evasion and money laundering.

I no dey too follow many cases of internet fraud in our country, but i think say e go dey based on the amount of money wey the internet fraudster steal and how much (both in cash and properties) was forfeited when arrested. Anytime wey dem convict internet fraudster, dem dey seize their properties, so i believe say that wan follow for why dem dey get light sentencing. Money laundering on its own na bigger offense than internet fraud, i no really know much about the penalties for tax evasion in Nigeria.

[Tungbulu]

while only the immediate past CBN governor Emefiele stole billions in the naira redesign policy and is living large while the case against him is as good as dead. Justice in Nigeria is compromised and the less influential are made to face the law while we keep seeing big players being above the law and escaping justice from time to time and there is no guarantee that this law being vetted now would clamp down top musicians or influencers or even politicians who already has influence in the government and bring them to justice.

Only those who are not from this country would be expecting justice to take its course because we all know that there's nothing like justice in this country, we've got laws but those laws are only applicable to poor masses, the less imfluencial and the financial derailed, and if for any reason you choose to take laws into your own hands, they make an example outta you and others use your case to learn.

Just few months ago, a video of a so called senator was trending all over social media where he literally harassed a citizen of the country and clearly stated that no one in the country had the power to oppose him, not even the IGP or anyone in the country, and what happened? The matter was swept under the carpet and truly, no one did anything about it. I'm pretty sure if this unapologetic attitude was portrayed by an ordinary citizen, he'd be rotting in jail now. The government has absolutely no regard for humanity, they only care about their selfish interests and nothing more.

[Mpamaegbu]

Na nice way to go be dat. I hope the National Assembly will speed it up and make it stand. At least all those scammers as celebrities go begin exercise caution because dem go sabi sey na prison dem dey play wit if dem ever try am. D things wey David, Sabinus, Brainjotter and many crypto influencers like dat one on SM who calls himself the most influential crypto person in Africa living large in Dubai, nor good at all. Imagine how loved those celebrities were (I'm sure that trust and love have been badly damaged now) but they played on the ignorance of their fans. Na David first try am last bull run and as there was no repercussions na im make more celebrities join am dis bull season. If this isn't checkmated, more will join sooner than we expect it.

[Oshio-man]

Earlier this year, some celebrities and prominent personalities launched pump and dump token, Ponzi schemes to defraud their followers and other innocent Nigerians, taking advantage of the country's current economic circumstances to steal millions of Naira from investors to fund their lavish lifestyle. The Nigerian Securities and Exchange Commission has proposed a bill to the Senate that would require convicted Ponzi scheme operators to serve a 10-year jail sentence and pay N20 million. This is a courageous step to protect our crypto space and further stop tarnish the reputation of the crypto community in Nigeria.

https://www.google.com/amp/s/nairametrics.com/2024/11/18/nigerian-crypto-industry-endorses-bill-proposal-to-jail-ponzi-operators/%3famp=1

What do you guys think about the new bill proposal? Will it scale through or abandoned just like the old proposed bill under Buhari Govemment.

There is something I notice about our representatives in d government house,  anything that will not favour dem, it will be difficult for dem to approve it for citizens to enjoy, if u look at those people forming celebrities in d country, u will no that dey are children of d people in d government position or dey have influence to d highest authority in d country which dey will never allow such law to hold their children or relatives to spend some years in prison, I nearly fall victim to that scam token dey launched, hoping it will bring good name to naija celebrities if people make income from d token, but it cause people to loss millionaires and those naija celebrities that used that token to scam people go free without d invitation of EFCC, and Senate house, if house of representatives and Senate house can approve d proposes to protect d image of crypto and their users, I think it will make many people to no d important of crypto.

[Josefjix]

Okay. First of this is a welcome development in the crypto ecosystem in Nigeria as I understand that this bill is not going to deter or reduce crypto scam schemes but will also encouraged more crypto investors into the market.

Unfortunately, Nigeria is known for its attractive laws but lacking in implementation according to the letter especially when it has to do with influential and wealthy personalities getting to fault the laws. You see a situation where a scammer scams the community of #100 million scam but is told to pay back #20 million as fine option.

I think the laws against crypto scammers would need to be given a different approach from other conventional laws and it should be strictly applied to send a strong message intending scammers and also make potential investors feel some sense of security within the space too.

The law doesn't care much about the fine but being convicted of a crime is enough damage on your reputation already and it destroys every hope of you ruling the country or occupying important political offices. It also go as far as not allowing you to visit some certain countries as some countries do not allow convicted felony into their countries or offer any job for them.

You do not expect someone that stole 2 billion to cough out the same amount, being convicted of the crime is enough judgement.