Jesam Michael, CEO of Afriq Arbitrage System, has been remanded in custody by the Federal High Court in Abuja over charges of fraud involving $854,416.36 and N590 million, linked to his cryptocurrency trading platform. The Economic and Financial Crimes Commission (EFCC) alleges that between September 2022 and June 2023, Michael solicited funds without regulatory approval, defrauding investors and laundering money.

The EFCC’s seven-count charge includes defrauding investors with false promises of safe, high returns and converting proceeds from unlawful activities. Michael was arrested in January 2025 and denied bail pending arraignment, with the EFCC preparing witnesses from Nigerian financial regulators.

Afriq Arbitrage, launched in early 2023 and promising 63.5% monthly returns, collapsed amid withdrawal issues and allegations of a Ponzi scheme. Investigations revealed lack of blockchain backing and regulatory permits, deepening suspicions about Michael’s operations.

This case underscores Nigeria’s intensified crackdown on crypto fraud amid a booming but risky digital asset market, highlighting the challenges of regulating cryptocurrency platforms to protect investors while fostering innovation.