Nigeria: Financial Watchdog receives petition against account closure at crypto exchange rate

3 min read

The Paxful Inc. crypto company based in Estonia. has been accused of cheating thousands of Nigerian investors from millions of dollars in cryptocurrencies by allegedly random account closures.

The news was reported by the local media agency Punch on April 7.

According to the report, the Nigerian non-profit organization United Global Resolve for Peace (UGRP) filed a petition on 2 April with the country's financial watchdog, the Economic and Financial Crimes Commission (EFCC), in which the alleged malice of Paxful & # 39; s Inc. practices and their impact on its Nigerian customer base.

Signed by UGRP Director Shalom Olaseni, the petition claims that:

"Cryptocurrency trading and exchange platform, & # 39; https://paxful.com' has torn them of their life investment in cryptocurrency by suspending their accounts, deactivating their wallets and refusing the value in their accounts to them back even after investigating and finding that they were not involved in fraudulent activities. "

The petition accuses the company of "intentional contempt for contract and rules for commercial transactions" by not reactivating access to user funds, even after alleged investigations were found to be unfounded.

The petition further claims that Paxful generated a profit of $ 20 million through the 2018 exchange, with Nigerian customers claiming to have 40% of revenue from transactions in Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and other cryptocurrencies provided.

An alleged victim, Samuel Olanrewaju, told Punch news that since November 2018 he no longer had access to three BTC (worth $ 15,750), and claimed that the company had falsely accused him of creating a fake user profile and refused to respond to his questions afterwards.

Paxful, for its part, firmly denied access to his account and portfolio closures were arbitrary, and claimed in an email to Punch that "all accounts that have been closed have a reason. We will only close an account if it violates our Terms of Service (Terms of Service). "

The acting EFCC spokesman Tony Orilade confirmed with the news that the watchdog had received the petition and would investigate the allegations.

In March of last year, the Nigeria Deposit Insurance Corporation (NDIC) warned Nigerian citizens about the use of cryptocurrencies, noting that they were not authorized by the central bank of Nigeria and therefore not insured by the NDIC.

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Written by

Don Bradman

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