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    HomeNewsUS Blocks Nigerian’s Cryptocurrency Fraud, Imposes $50,000 Fine

    US Blocks Nigerian’s Cryptocurrency Fraud, Imposes $50,000 Fine

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    By Aaior K. Comfort

    The Kansas Attorney General’s Office has successfully blocked an attempt by Bimbo Toyin Akinyemi, a Nigerian national, to defraud a Kansas resident of cryptocurrency. This action, detailed in a statement titled “State of Kansas, U.S., Thwarts Attempt by Nigerian Crypto Scammer to Defraud Resident, Attracting Over $50,000 in Civil Penalties,” reveals the extent of the fraudulent scheme.

    According to BitKE, a platform known for reporting on cryptocurrency activities in Africa, Akinyemi promised substantial returns on a cryptocurrency investment. Court documents show that on July 15, 2023, Akinyemi entered into an agreement with the victim to purchase Bitcoin and deposit it into an ‘investment wallet address’ provided by Akinyemi. The victim was promised returns ranging from $500 to $1,240.

    Akinyemi exploited the victim’s lack of knowledge about cryptocurrencies by obscuring the traceability of the transactions and falsely claiming that depositing funds into the digital wallet would activate it as an investment account. After receiving the deposits, Akinyemi transferred the funds to his own account and issued a fraudulent $1,000 cheque, which was never cashed.

    The Kansas Attorney General’s Office has mandated that Akinyemi refund the victim’s $250 investment and has imposed $50,000 in civil penalties for five violations, along with $4,000 in investigation fees and all court costs. Akinyemi’s wallet, which contained half of a Bitcoin valued at over $28,900 and additional digital currency worth more than $4,000, was seized by authorities.

    A default judgment was issued against Akinyemi after he failed to respond to court summons and petitions. In addition to the financial penalties, Akinyemi has been banned from engaging in consumer transactions within Kansas.

    “Cryptocurrency is a borderless asset that allows international scammers to target and defraud Kansans from the comfort of a keyboard,” said Nathanial Castillo, First Assistant Attorney General. “Scammers understand that convincing victims to send cryptocurrency increases their chances of escaping detection. Kansans should always thoroughly scrutinize anyone they meet online before sending payment in cryptocurrency.”

    The U.S. Department of Justice and the FBI were also involved in the investigation.

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