Alleged N1.8trn fraud: Investors seek EFCC, SEC’s probe of cryptocurrency firm

At least 14, 000 Nigerian investors have prayed the Economic and Financial Crimes Commission (EFCC) to investigate activities of a cryptocurrency firm, MTS/TOFRO, over alleged N1.8 trillion investment fraud.

The petitioners, though their lawyer, Ebuka Nwaeze, also urged the Securities and Exchange Commission (SEC) to investigate the extent of the firm’s compliance with the commission’s regulations and the allegation of its collapse.

While a petition addressed to the EFCC’s chairman was received on Aug. 6, the petition written to the SEC DG was received on Aug. 13.

The certified true copies of the documents were made available to newsmen on Thursday in Abuja.

Nwaeze urged the EFCC to investigate the matter, trace, recover and redistribute the funds of his clients and prosecute any person found culpable in the alleged unlawful activity.

He said this would serve as a deterrence “to other fraudulent characters from doing so and to altogether shore up the cyber security reputation of Nigeria.”

It reads: “We are solicitors to Nigerians of various walks of life who engaged in digital trading on the cryptocurrency trading platform known as MTS/TOFRO crypto trading platform.

“Our clients number over 14 million Nigerians, who are registered traders on the trading platform, where legitimate exchange and trade of digital assets were being carried out under an ostensibly secure digital platform.

“Our clients’ enlistment and participation on the platform was in good faith, being that MTS/TOFRO is a reputable organisation registered in the United States of America and its platform enjoys wide participation in America as well as in various counties in Europe.”

The lawyer alleged that the operators of the platform capitalised on the SEC’s call for regulation of crypto trading platforms to convince investors that they were already in the process of registration and reopening of the platform after full compliance, while they closed down their physical offices.

He said many of his clients, being law abiding citizens, considered and found the activity of the platform to be in consonance with the National Digital Economy Policy and Strategy (2020-2030), which encourages Nigerians to participate in the digital economy.

He said this was so since the Federal Government “proclaimed active pursuit of digital transformation to create jobs and increase the contribution of the digital economy to the Nigerian GDP from about 14.3% to 21% by the year 2030.”

The EFCC’s Head, Media and Publicity, Dele Oyewale, confirmed that the commission received the petition.

“The matter involving MTS/OFRO is currently before the commission,” he said.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled:  Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

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