Topic: Nigeria SEC proposes 10 Years Jail Terms For Crypto Ponzi Scheme Operators - page 2. (Read 737 times)

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.

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.
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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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

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.

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.

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.

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......

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.

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. 

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.

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.