Key Points
- The U.S. Securities and Exchange Commission (SEC) has charged three Nigerians for a $2.9 million Bitcoin fraud scheme.
- The defendants allegedly used fake websites and social media to impersonate financial professionals and defraud at least 28 victims.
The U.S. Securities and Exchange Commission (SEC) has accused three Nigerian nationals of carrying out a fraudulent Bitcoin scheme, defrauding investors of $2.9 million.
The individuals allegedly impersonated legitimate financial professionals using fake websites, social media, and voice-altering software, targeting a minimum of 28 victims.
The Defendants and Their Tactics
The accused, namely Chibuzo Augustine Onyeachonam, Stanley Chidubem Asiegbu, and Chukwuebuka Martin Nweke-Eze, are said to have posed as brokers and advisers from reputable U.S. firms.
They reportedly crafted websites that mirrored actual professionals, complete with fabricated testimonials from purported clients. They utilized social media and group chats to entice investors into trusting them.
The victims were instructed to purchase Bitcoin (BTC) through legitimate exchanges and then transfer the funds to the fraudsters’ blockchain wallets. To make the scam more believable, the accused created phony investment platforms that displayed false portfolio growth, deceiving investors into thinking they were making profits.
Legal Proceedings
The SEC has lodged charges in a New Jersey federal court, alleging the defendants of breaching U.S. securities and investment laws. The SEC is demanding penalties that encompass returning the stolen funds with interest and levying fines.
In a separate action, the U.S. Attorney’s Office in New Jersey has initiated criminal charges against the three individuals.
