Full Story behind EFCC arrest of Inksnation Ponzi Scheme Operator

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There has been reported cases on the suspicious activities of Pinkoin and InksNation and the Economic and Financial Crimes Commission of Nigeria (EFCC) has reportedly declared the founder of the popular Nigerian cryptocurrency, Pinkoin, and the block chain project, InksNation, wanted following a fraud case to the tune of 32 million Naira (Approx. $82, 700).


The SEC (Security and Exchange Commission) Nigeria has previously flagged the products of InksNation, including Pinkoin, as illegal and warned the public about any business dealings with such investments. In response to this, Bitcoin KE reached out to Senator Ihenyen, Secretary General, SiBAN (Stakeholders in Blockchain Technology Association of Nigeria, for a clarification on this and received the following statement:

“On our path at SiBAN, we will continue to stand for what is legitimate, sustainable, and safe for our community and the members of the general public. If the allegation against Inksnation is found to be true, the persons I will be most worried about are the un-enlightened members of the public who may have made uninformed decisions when they decided to invest in such a project. It is best to be cautious about investing in projects that raise too many questions than answers. SiBAN, as Nigeria’s self-regulatory body in the blockchain space, did raise questions. The questions SiBAN raised informed its decision not to register Inksnation as a member when Inksnation applied for SiBAN membership. Our public statement concerning this remains public. In fact, concerned about investor safety, our members engaged the Inksnation community about the legitimacy and sustainability of the Inksnation project. But our genuine concerns were misinterpreted. We were attacked. Regardless of what comes out from this episode, it tells us that stakeholders in the blockchain & crypto space must keep investing in blockchain & crypto education and awareness. I believe that this is the best way to keep the community safe and investors protected, proactively. And this is where we need community support, including support from the media such as Bitcoin KE and other media platforms in the space. We will remain vigilant.”


Subsequently, operator of Inks nation Ponzi Scheme, Omotade Sparks Amos Sewanu who hails from Badagry was arrested on the 27th May, 2021 by the Sokoto Zonal Office of the Economic and Financial Crimes Commission. Through this inksnation platform, Omotade had floated a phony online digital currency called “Pinkoin” which lured many Nigerians to invest between One Thousand Naira to One Hundred Thousand Naira with a promise of unrealistic returns and went ahead to distribute a payment card called “Pink Card” to further confuse his victims. He equally made false claims that he was in partnership with the EFCC to persuade people to invest in his devious scheme. However, the scammer was not licensed to operate a financial institution. He will be arraigned in court at the conclusion of the investigation.

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