The Economic and Financial Crimes Commission (EFCC) has warned Nigerians against trading in bitcoin, forex and other high risk investments that promises huge returns.
The anti-graft agency raised alarm at the rate at which Nigerians send petitions to the commission on fraudulent investments that promised a high return with little risk to investors.
Nigeria ranks as the second largest Bitcoin market in the world with over $500 million worth of Bitcoin traded over the last five years.
The agency said, “Though risk-taking is considered by some as the oxygen that drives investment decisions, the commission warns the public against taking unmitigated risk in desperation to earn a windfall.
“Investment in Bitcoin, for instance, is a high-risk activity as the terrain is largely unregulated, and prone to fraud,” the agency said.
According to EFCC, Nigerians are losing money to Ponzi schemes, forex trading and most recently, Bitcoin trading, compounding the nation’s economic woes.
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The commission said the trend was an indication that investment scams continued to thrive despite enforcement and public enlightenment interventions by the commission and other stakeholders.
“While EFCC will continue to investigate and prosecute persons complicit in fraudulent investment schemes, it is incumbent on the investing public to be circumspect in their investment decisions.”
The commission also reminded civil society organisations (CSOs) and non-governmental organisations (NGOs) that it had become mandatory to report to the Special Control Unit against Money Laundering (SCUML) any transaction through any formal financial channels in excess of $10,000 and any cash donations in excess of $1,000.
The Nigerian monetary authorities had earlier this year expressed concern over the use of cryptocurrencies, saying they were issued by unregulated and unlicensed entities and as such, its use in Nigeria contravened existing law.
The Central Bank of Nigeria (CBN) had on February 5, 2021 written to banks and other financial institutions, stating that dealing in cryptocurrencies and facilitating payment for cryptocurrency exchanges are prohibited.
