SEC Charges Three Nigerians in Multi-Million Dollar Bitcoin Fraud Scheme

Three Nigerian citizens have been charged by the U.S. Securities and Exchange Commission (SEC) with scamming Bitcoin investors out of $2.9 million. According to the SEC, Chibuzo Augustine Onyeachonam, Stanley Chidubem Asiegbu, and Chukwuebuka Martin Nweke-Eze impersonated real financial professionals using a range of dishonest techniques, such as phony websites, social media, and sophisticated voice-altering software.

The three pretended to be financial advisors and brokers for reputable American companies. To gain the faith of possible investors, they produced phony websites that looked like those of real experts, complete with fake testimonials. The defendants attracted victims and persuaded them to invest in Bitcoin by using group chats and social media sites.

Manipulating Victims into Transferring Bitcoin

The scheme involved convincing victims to purchase Bitcoin from legitimate exchanges, only to have them transfer the funds directly into the fraudsters’ blockchain wallets. To make the scam appear more credible, the defendants created fake investment platforms that displayed false portfolio growth. This led victims to believe they were making profitable investments, further fueling the deception.

According to the SEC, the victims fell for the fraudulent tactics, and at least 28 individuals were scammed in total. By posing as reputable brokers and using sophisticated digital methods, the perpetrators were able to manipulate the victims into transferring significant amounts of cryptocurrency.

The SEC has taken legal action in a New Jersey federal court, charging the three individuals with violating U.S. securities and investment laws. The regulatory body is seeking to recover the stolen funds, along with interest, and impose fines. Additionally, the U.S. Attorney’s Office in New Jersey has filed criminal charges against the accused, intensifying the legal consequences they may face.