- The proposal is the Investment and Securities Bill (ISB) 2024, brought forward by Nigeria’s Securities and Exchange Commission
- The proposed law seeks a 10-year jail term for operators of Ponzi schemes in the country and/or a N20 million fine
- Rume Ophi, said if the bill is passed into law, it will help deter criminals from trying to scam people under the pretence of cryptocurrency investment or ponzi schemes
The crypto community in Nigeria has reacted to a fresh proposal to prosecute and jail Ponzi scheme operators in the country.
The proposal is the Investment and Securities Bill (ISB) 2024, brought forward by Nigeria’s Securities and Exchange Commission. The proposed law seeks a 10-year jail term for operators of Ponzi schemes in the country and/or a N20 million fine.
Reacting to the proposed law, influential figures in Nigeria's cryptocurrency sector think the bill should get a speedy hearing and be passed soon. Long-time cryptocurrency supporter and Flincap CEO Nathaniel Luz hailed the bill, claiming it would assist the sector in purging itself of dishonest players.
“It’s one way to clear out bad actors from the industry so we can have a vibrant finance and investment ecosystem,” he said.
Also, vocal Web3 analyst and crypto advocate Rume Ophi said if the bill is passed into law, it will help deter criminals from trying to scam people under the pretence of cryptocurrency investment or outright Ponzi schemes. He also added that if the bill is passed, it could hold people who have previously defrauded users accountable.
Nigeria has one of the world’s largest crypto markets, but scammers operating out of the country have given it a bad name. The scams do not just come in the form of romance scams and business email compromise (BEC) schemes; celebrities who have gained the trust of the populace also launch and endorse scam digital assets and coins that defraud their supporters.
For instance, early this year, one of the most popular afrobeats singers in the country, Davido, launched the $DAVIDO meme coin. The coin was built on the popular meme coin launchpad, Pump.fun, and launched on the Solana blockchain. With the trust of his followers, just a few hours after launch, it started trading, but in less than a week, the $DAVIDO meme coin lost all of its value.
Rume said that passing the bill would deal with celebrities who defraud their supporters through scam coins they launch or endorse. He also said it would reduce significantly the belief that cryptocurrency is synonymous with Ponzi schemes.
The SEC had previously presented the bill to former President Muhammadu Buhari and said that its goal was to increase the competitiveness of the country's securities market.
CZ in court again as FTX sues him, Binance for $1.8 billion clawback
Meanwhile, TheRadar earlier reported that Changpeng Zhao, founder and former chief executive officer of crypto exchange Binance, will have another day in court just weeks after he was released from prison.
This is because bankrupt crypto exchange FTX has sued Zhao, popularly known as CZ and Binance, to recover shares valued at $1.8 billion that it claims Sam Bankman-Fried, its jailed former chief executive, improperly repurchased in 2021.
