Saturday, July 20, 2019

Two Nigerians Allegedly Scam Victims Over 50 Bitcoins in Fraudulent Investment Schemes

Two Nigerians, Onwuemerie Ogor Gift, and Kelvin Usifoh have been charged with a 13-count indictment by the United States Attorney’s Office District of Oregon. The duo allegedly scammed over 50 bitcoins while running a fraudulent scheme, according to U.S. justice department of April 24.

Onwuemerie Ogor Gift and Kelvin Usifoh Get Indicted for Bitcoin Fraud

Per the report, Onwuemerie Ogor Gift and Kelvin Usifoh have been indicted for a Bitcoin fraud. The court charges the duo with 1 count charge each for conspiring to commit wire fraud and money laundering. They have also been charged with 11 counts of wire fraud.

While revealing the events that took place, the court outlined that the duo had begun the business in December 2017 and ran it till June 2018. Three websites were used to promote the scheme and these are boomcurrency.com, wealthcurrency.com, and merrycurrency.com. In a bid to garner investors interest, they had promised investors 20 to 50 percent returns on investments and with no risks.

The Duo Encouraged Victims to Transfer Their Bitcoin to Them

Ogor Gift and Kelvin Usifoh purportedly encouraged their victims to transfer Bitcoin to accounts which they control. Victims were told that the funds will be invested with the use of unique trading methods which will yield a constant high-interest rate.

However, the accused allegedly scammed its investors over 50 Bitcoins which is currently valued at $270,000 dollars. It can be assumed that the value was higher given that Bitcoin’s average price within the 6 month period was around $6,400. The earnings were then converted to Nigeria’s fiat currency, Naira.

Three People Fell a Victim to the Scam

More details reveal that three people fell a victim to the scam; one residing in Oregon and the other two in Philadelphia. One of such victims was scammed 10.88 Bitcoins. There was, however, a fourth victim whose picture was used to create a false persona in order to scam other people.

On April 9, BTCNN informed that some Nigerians were complaining that Paxful, a peer-to-peer cryptocurrency exchange has stopped them from accessing their wallets on the platform. A number of these traders had begun to allege that they had been scammed by the platform.

BTCNN on April 13 also informed of Global Coin Community Help, a Ponzi scheme in Ghana, a West African country. It had scammed 110,000 investors over $25.7 Million (GHC135 million) in 2018 alone. The government, on the other hand, has been creating awareness of the risks involved in investing in cryptocurrency. Another government officially hinted that anyone who trades Bitcoin is doing so illegally.

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