Nigerian Authorities to Probe Bitcoin Ponzi Scheme

cryptocurrency trading in Nigeria

The Nigerian Senate on Tuesday asked the Central Bank of Nigeria, Nigeria Deposit Insurance Corporation, National Orientation Agency and Nigerian Stock Exchange to embark on a national awareness campaign against investment in Bitcoin and Ponzi schemes in Nigeria.

This was due to a motion titled, ‘Urgent need to investigate the proliferation of Bitcoin, a form of Crypto-currency, to ascertain the worthiness of same as a form of investment in Nigeria’, sponsored by Benjamin Uwaiumogu (APC, Imo North). The lawmaker lamented the widespread of Ponzi and pyramid schemes in Nigeria that promise unusually high returns on investments.

The lawmaker also reminded the Senate that the MMM Nigeria collapse of 2016 that left millions of Nigerian wondering what happened to their money. “As Nigeria is recovering from the recession, it will be devastating for our citizens to lose their hard-earned money on schemes they could easily have avoided had they been properly advised by the government”, The Senate committee is expected to make recommendations within two weeks, Ekweremadu said.

On January 24, Central Bank of Nigeria Governor Godwin Emefiele likened the trade in the digital currency to gambling and urged for caution.

NairaEx CEO said, The growing popularity of Bitcoin in Nigeria has ushered in the re-emergence of Ponzi and cryptocurrency investment schemes, Nigerians need to protect themselves by performing their own due diligence to make sure they’re not caught up in a “too good to be true” cryptocurrency scam.

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BTC Nigeria Editorial