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

[Zigabel]

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.

This is a welcome development and I wish and hope it does scale through to the point of proper execution but on a second thought, the Nigerian government isn't in support of the usage of cryptocurrency due to regulatory issues so how then are they proposing a bill that will protect the crypto space, it sounds like a twisted irony to me, I just hope they aren't targeting at something because most times we have seen laws been made just to target a particular set of persons or to make sure to use it to achieve a goal thst will be beneficial to a prominent few, hopefully this isn't one of those schemes but for the protection of the crypto space it will be a good one

[Coyster]

Plenty of us for here get crypto knowledge, so we no go fit fall for crypto ponzi schemes, but e go so many Nigerians out there wey no know anything about crypto, but of course dem wan make money, so they easily fall prey when these celebrities promote these ponzi schemes and they lose their money through it.

I hope say dem go pass this bill into law, so many people dey only fall for these schemes because dem "trust" the celebrities wey dey promote am. These celebrities suppose they do their homework before advertising anything, but no, dem go just collect their money and promote anything with impunity.

[Promocodeudo]

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.

First and foremost I commend the Nigeria SEC for this singular act of theirs but as we all know the problem will always be the lower and upper chambers in the national assembly to take this bill serious, if this bill is been passed I think it will correct many things in Nigeria in regards to cryptocurrency.
Many people have been a victim of circumstance to this effect, though Nigeria is a bit backward in terms technology, in  Nigeria today the unwarranted victimization, molestation by EFCC and the suspicion of anything concerning crypto by the Nigeria security agents in general is attributed to as result of the dubious activities been carried out by some corrupt elements in defrauding unsuspicious Nigerians from the so called shitty scam coins, as a matter of urgency, this is a wise decision by the SEC and i will be very happy if the proposed bill finally sees the light of the day without being frustrated by the legislature.

At least with this, things can be done and seen differently in the Nigeria crypto space, it's a welcome development, we hope to see this come through soon.

[HajiBagi]

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.

This is a very good decision and this will serve as an example for the remaining people who are planning to do this kind of stuff and scam people, if they do not take this kind of decision they will take the country for granted which will make other people believe that Nigeria is a country where you can come with a plan and scam people because they know that people in Nigeria like anything that concern invest and earn a profit, many celebrities have taken Nigeria to a country where they will do something and nothing will happen.

I prefer they should be sentenced to 20 years in jail so that even when they later come out they will never enjoy themself, only God knows how many people will fall into their trap, some people will even go and use their life savings and later if he discovers it was a scam only God knows how he will feel, those people deserve many years in jail and it will be very good if the Nigeria security takes action without corruption in that case because we all know how some of our security behave most especially the EFCC.

[SmartCharpa]

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.

Honestly, this is a wise decision. Nigerian securities may have taken this seriously when it was presented to the former president. This year, many individuals became victims since our country is not used to dealing with such situations. All of these activities are illegal, but I'm curious why securities couldn't take action for a while now. If the bill had been stated earlier, those who were innocent would not have lost their money. All of these Nigerian celebrities make use of their fans. But I think the BrainJotter coin did not go popular like Davido and Sabinus.

However, our country's problems are difficult to predict at times, it's possible that they won't punish these individuals because they are wealthy, and we might not even hear about them again. Ten years in prison and twenty million is not a little punishment, and if they don't fail this time, it will serve as a warning for others who want to do the same in the future. Perhaps they will show concern for the innocent people who have been affected this time.

[Marvelockg]

I hope say dem go pass this bill into law, so many people dey only fall for these schemes because dem "trust" the celebrities wey dey promote am. These celebrities suppose they do their homework before advertising anything, but no, dem go just collect their money and promote anything with impunity.

sometimes i don't entirely blame this celebrity because a lot of their fanbase allows it look like they are God and that anything that comes from them is authentic. some people already know that some of these project that comes into being through these celebrity won't stand the taste of time but will choose to invest in them just to prove loyalty and just to chase after clout.

when Davido brought up a token, a lot of the people that bought it were only following after trend and didn't find it necessary to do their own research to be sure of the authenticity of the project, the rest of the story we know is just history. should the proposal pull through, its going to be a development that will help a lot of the people that easily fall prey of these.

[Yucky]

This is a welcome development and I wish and hope it does scale through to the point of proper execution

If the SEC really pulls through with this bill, then they would have achieved a groundbreaking feat in Nigeria. This is because Ponzi schemes, both in the crypto world and the non-crypto world in Nigeria, are getting out of hand. Other countries have even started classifying anything scam with the world "Nigerian prince" equating Nigerians with scammers. This is robbing us of international opportunities. Some people just come up with their own coins and influences, riding on Nigerians innocence and the situation we find ourselves in.

Because we are struggling and trying different things to make money, it's really not fair. Today, it's this coin; tomorrow, it's that coin. The next day, it's another coin. Knowing the current economic condition of Nigerians, we are looking for a breakthrough. People go ahead and try these coins ignorantly, putting their money in and everything is gone.

To think that our fellow Nigerians are the ones coming up with some of these Ponzi crypto schemes is really disheartening. So, if the SEC really passes this bill and it's pushed through and functional over the years, then they would have achieved a really good feat in Nigeria. I just hope the Nigerian syndrome doesn't come into play. They say something today, and tomorrow, those in high office who are part of the Ponzi scheme will look for a way to cripple it and we won't hear about it again.

If they can take it seriously, because some people don't believe in this bill they are passing then it would be a very good thing. It's going to be a good thing for Nigeria as a whole, to redeem our name and to help those in the crypto space. The little money Nigerians have will not be ignorantly used on scams created by our own people and I pray it works out.

[igebotz]

I prefer they should be sentenced to 20 years in jail so that even when they later come out they will never enjoy themself, only God knows how many people will fall into their trap, some people will even go and use their life savings and later if he discovers it was a scam only God knows how he will feel, those people deserve many years in jail and it will be very good if the Nigeria security takes action without corruption in that case because we all know how some of our security behave most especially the EFCC.

10 years Jail term should be OKay, it's a financial offense, not murder and shouldn't get sentenced like one. The only changes I would have love to see is if found guilty the scammer is ask to pay at 40% of stolen money to victims and ofcos some part to the FG as fine.

Sometimes i don't entirely blame this celebrity because a lot of their fanbase allows it look like they are God and that anything that comes from them is authentic. some people already know that some of these project that comes into being through these celebrity won't stand the taste of time but will choose to invest in them just to prove loyalty and just to chase after clout.

Sometimes they go as low as defending obvious murderers for the sake of stanship.

[Pi-network314159]

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.

Well I go talk say na welcome development, because the rate of scam for the country too much. My country Naija dey use any medium dey scam people and this thing don cause even our bitcoin matter dem don make am look thus like scam. If dem been no use bitcoin for fraudulent activities, no how wey dem for dey label bitcoin a ponzy sceme for those wey no no about bitcoin. I strongly support the SEC for the development and make them pass am into bill. Atleast E go reduce the rate of internet fraud.

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.

where dey fear me pass be say everything is possible for Naija meaning say them fit Catch some people and na money dem go take bail them. and the matter go die isap. But anyway make them first sign am into law make we see how e go be. Atleast na some fit bail themselves, why those wey no get reach 20m no fit afford to baiil themselves. Atleast with that fear go catch dem to reduce the rate of crime.

[Nwada001]

I prefer they should be sentenced to 20 years in jail so that even when they later come out they will never enjoy themself, only God knows how many people will fall into their trap, some people will even go and use their life savings and later if he discovers it was a scam only God knows how he will feel, those people deserve many years in jail and it will be very good if the Nigeria security takes action without corruption in that case because we all know how some of our security behave most especially the EFCC.

Laws are not made based on emotions; the 10-year jail term is enough if you ask me; beside, they are also subjected to paying the sum of $12,000 as part of the punishment for their crime, or #20,000,000, and the case of someone caught operating such a business will defer depending on the gravity of the offence; some properties will be confiscated if found linked to the Ponzi; 10 years is okay with other terms that will be given to them even when they are released. 

[Charles-Tim]

A 10 years Jail term or option fine of 20m should be enough for Davido, Sabinus, Brainjotter and co from another pump and dump projects.

I do not know much about the bill but it lacks clarity with the news. Ponzi scheme means you are luring investors to invest in a product, but which are lies as there is no product, but using late investos money to pay early investors. This is different from pyramidal scheme and some other hyip. Also this is different from the token that Davido created on Solana network to scam people. As long as such offers does not lead to exit scam, I do not think this kind of crypto means of making money from people would be among punishable Ponzi schemes. It is not even a Ponzi scheme by definition but effective like Ponzi scheme in making money. If it is cryptocurrencies, people should know how this works. No one I have read of even abroad that was imprisoned because of a crypto project become dumped and price fall.

[igebotz]

A 10 years Jail term or option fine of 20m should be enough for Davido, Sabinus, Brainjotter and co from another pump and dump projects.

I do not know much about the bill but it lacks clarity with the news. Ponzi scheme means you are luring investors to invest in a product, but which are lies as there is no product, but using late investos money to pay early investors. This is different from pyramidal scheme and some other hyip. Also this is different from the token that Davido created on Solana network to scam people. As long as such offers does not lead to exit scam, I do not think this kind of crypto means of making money from people would be among punishable Ponzi schemes. It is not even a Ponzi scheme by definition but effective like Ponzi scheme in making money. If it is cryptocurrencies, people should know how this works. No one I have read of even abroad that was imprisoned because of a crypto project become dumped and price fall.

Yes. However, when the creator removes all liquidity and new investors are obliged to pay liquidity to existing investors at the peak, the scheme transforms into a Ponzi.

Davido exited the coin and dumped the coins, those who still held them were unable to sell and have to wait for fresh buyers to provide liquidity for existing SELL orders.

It became, Paul paid Peter, Alex paid Paul......

[Sonia_123]

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.

This is a very good and intelligent bill from the NSEC, it will go a very long way to crub and reduce fraudster into ponzi in our country, with our present economic challenge,these fraudster don't even feel sorry for the citizens,they just map out their plans and start frauding people of their hard earned money,some even go as far as  borrowing to invest in their ponzi.
They render people cashless and homeless because in the bit to make more money,some persons sold off their building and valuables ,some have even lost their lives due to depression of these fake ponzi operators,and that is why a lot of persons don't believe you when you approach them, and trying to introduce and telling them how genuine Bitcoin investment is, they, compare Bitcoin with others and feel is a scam.
I am happy that for once, this government has taught it wise to see to this aspect of its citizens and bring a lasting solution this problem.

[uchegod-21]

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 never see my country as people wey serious to implement things. Sometimes them go get good ideas but implementation go be the wahala. This one of Ponzi scheme in the name of creating coins, I don cry for this matter for long time. The ignorant people go dey hail the criminals say dem dey into crypto, without knowing say na scammers dem be. If the government go fit fish them out, I go happy well well. This industry needs urgent and total sanitisation and sensitisation make people for dey aware.

Another wahala be say, police and other agencies go come dey use am even against innocent people wey no dey crypto Ponzi. Na the reality of we country.

[Moreno233]

This is a good move by the SEC even though it is already coming late because Nigerians have passed through hell in the hands of scammers using different level of ponzi schemes to shortchange their fellow citizens. It will difficult to even find a Nigerian, that is active on the internet and following up on crypto, who have not been a victim of one of those schemes because they make it look so legit.

My only worry is if they will be able to enforce this given the peculiarity of Nigeria where there are so many loopholes and people gey away with punishable offenses. Whatever be the case, this is a good move by the authorities.

[promise444c5]

For Ponzi schemes no doubt but ponzi schemes can come in different ways but it still involves investing... and most people seem to be using crypto as ponzi scheme maybe to those that has little or no knowledge about it , probably advert of people telling people to invest in some kinda unknown coin or likes ( there was a trending in the early 21, I think pink or so couldn't remember the name again,  they even gave card to people ).. apart from this, I think any one can do a rug pull, it's not really an illegal stuff though some people had been arrested from rug pulling before and that's related to NFT  I think and NFT is more like a crappy space at the moment... that's why people need to know what they are investing on besides, most people just gambles it.
If rug pull seem to be part of what they mean then it will come to identifying the identity of such person ( if the person the make a physical connection... it's simple ) but for ponzi schemes generally it's cool, it's going to get rid of those  people

[Samlucky O]

A 10 years Jail term or option fine of 20m should be enough for Davido, Sabinus, Brainjotter and co from another pump and dump projects.

I do not know much about the bill but it lacks clarity with the news. Ponzi scheme means you are luring investors to invest in a product, but which are lies as there is no product, but using late investos money to pay early investors. This is different from pyramidal scheme and some other hyip. Also this is different from the token that Davido created on Solana network to scam people. As long as such offers does not lead to exit scam, I do not think this kind of crypto means of making money from people would be among punishable Ponzi schemes. It is not even a Ponzi scheme by definition but effective like Ponzi scheme in making money. If it is cryptocurrencies, people should know how this works. No one I have read of even abroad that was imprisoned because of a crypto project become dumped and price fall.

Yes. However, when the creator removes all liquidity and new investors are obliged to pay liquidity to existing investors at the peak, the scheme transforms into a Ponzi.

Davido exited the coin and dumped the coins, those who still held them were unable to sell and have to wait for fresh buyers to provide liquidity for existing SELL orders.

I agree with you. What this so-called crypto scammers does is that on luching a new coin they  keep like 30 to %40 of the total supply of their coin to themselves and release %70 to %60 to the community making the coin a little bit more  scarce and making the demand high because people believe in that when a coin is scarce it attracts demand. By then people will be triggered to buy more and more then at the pick when they se that alot of liquidity has been added and the market cap is becoming higher at their own risk, they sell their %30-%40 knowing that the higher the price goes the riskier it is to them because sensitive investors may sell and left them with rugpul. So they become fast to sell and dump it on the investor. Investors sell and dump to the people who bought to HODl not knowing the coin is dead and can never grow again. So this tactics has been in existence for long and that is why we have so much pump and dump coin.

Even though it is not only Nigerians who does this but Nigerian has been labled on this. So I am in support on this. let it be implemented and let see how this goes. I know  even this has been signed to bill and its working effectively, people will still see Nigerians as not being God by foreigners but at least let it start and gradually it will take it full course.

[DubemIfedigbo001]

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's government.

Buddy you and I know that this is just another propaganda to make the Nigerian SEC look proactive in the sight of the public and feeling a sense of action towards the disheartening menace ousted by these web2 and web3 exploiters, If I read correctly, this bill was passed under the former president administration and it was not adopted and now it is being passed again under an even worse administration, what is the guarantee that it would even be adopted, and if it is finally adopted, what is the guarantee that it would be enforced on the big players?

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


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.

[Olatundespo]

This is a welcomed development but the only problem with proposals like this is that it is hard to enact and even harder to enforce especially if the celeb caught has close relationships with law enforcements, they'll just get away with a slap on the wrist. This is why I'm not too excited about the bill. We would still see celebs supporting ponzi schemes and launching their own pump and dump tokens to their unsuspecting followers. Until I see one celeb arrested and put in jail, nah. Not buying it.

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.

[MainIbem]

Buddy you and I know that this is just another propaganda to make the Nigerian SEC look proactive in the sight of the public and feeling a sense of action towards the disheartening menace ousted by these web2 and web3 exploiters, If I read correctly, this bill was passed under the former president administration and it was not adopted and now it is being passed again under an even worse administration, what is the guarantee that it would even be adopted, and if it is finally adopted, what is the guarantee that it would be enforced on the big players?

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


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.

Emefiele's own case was handled in a more better way, I'm not in support of his act but atleast he got embarrassed by the present government through the DSS and even though we know he'll be living his normal lifestyle in anywhere they kept him and claim it's a prison atleast he's been shamed by the public and some of the money he laundered has been recovered by the government, although we know they won't put it to good use. My pain is concerning yahaya bello that committed same crime and he's roaming scot-free with the so called security personnels we have claiming they don't know his whereabout. The question is, how then could they locate all these fraudsters they apprehend daily? If they could channel same early to our corrupt law makers and government officials I think it would help reduce the lootings here and there, it show how corrupt our security system is, they favour the rich and persecute the poor which is very bias.