Bitcoin Brutal Crash: Nigerians Raise Alarm Over Losses From Illicit Cryptocurrency Schemes

As the saying goes, Knowledge is the key. In an ever-growing world where new technological advances are happening every minute, it is necessary to stay abreast of the facts.

Top crypto asset by market cap, Bitcoin had a wild run in December 2017; it hit its ATH of $20,000 which put it in the spotlight, thus attracting global attention. In Nigeria, one of the most populous nations in Africa, this singular move brought BTC to its shores and made it popular. However, some scammers have taken advantage of this to swindle unsuspecting individuals of their hard-earned money. This unsuspecting individuals are new to cryptography and don’t seem interested in the technicalities, but one thing is common to these individuals, they are seeking new ways to make quick and extra income as the nation’s economy continues to falter under the current government.

As shared by a report, the modus operandi of these schemes goes thus, the schemes pretend to be legitimate, but the truth is they share semblance with the pyramid and Ponzi schemes, then the initiators claim that they make profits by predicting the price movement of cryptocurrencies through a CFD trading account while others say they make their income from transactions on different coins through crypto exchanges.

In the last few days saw Bitcoin (BTC) price plummet from 28.35% from $7,650 to $5,500, the carnage continued and Bitcoin descended rapidly by 24%. This brought the price to $4,679, a new 2020 low and a price last recorded since April 2019.

Greed, Ignorance Remains the Bane
The most common reason why people lose their money to fraudulent schemes is greed which stems from the inordinate desire to make quick cash. Ignorance has also been attributed as these scammers make rhetoric on the 2017 BTC wild run promising investors huge ROI within a short time. Not only on the part of Nigerians, but regulatory bodies also seem to be in oblivion about the latest advancements in the crypto space. The Nigerian police likewise know little or nothing about cryptocurrencies and Blockchain therefore the hand of the law is shortened in dealing with the real perpetrators of this evil.

Security and Exchange Commission (SEC) which is the regulatory body for digital assets and securities stated recently that a regulatory framework is in the offing for the digital currency sector. A cybersecurity pro, Anthony Ogbo expatiated more that the solution lies in the government creating a robust financial system and regulation to accommodate cryptocurrencies and also providing crypto education for law enforcement agencies.