Investors urge EFCC to probe crypto firm over alleged N1.8 trillion scam

No fewer than 14,000 Nigerian investors have petitioned the Economic and Financial Crimes Commission (EFCC) to investigate the activities of a cryptocurrency firm, MTS/TOFRO, over an alleged N1.8 trillion investment fraud.
The petitioners, through 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 chairman was received on Aug. 6, the petition written to the SEC director-general was received on Aug. 13.
The certified true copies of the documents were made available to journalists on Thursday in Abuja.
Mr 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 deterrent “to other fraudulent characters from doing so and to altogether shore up the cybersecurity 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 countries 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 of media and publicity, Dele Oyewale, confirmed that the commission received the petition.
“The matter involving MTS/TOFRO is currently before the commission,” he said.
(NAN)
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