The Federal Excessive Courtroom in Abuja has remanded the CEO of a cryptocurrency buying and selling platform Afriq Arbitrage System (AAS), Jesam Michael, on the Correctional Centre over an alleged funding fraud case involving $844,416.36, $10,000, and N590 million, instituted by the {Economic} and {Financial} Crimes Fee (EFCC).
The remand order was authorized after Michael’s bail was once more denied following the studying of a seven-count cost earlier than Justice Obiora Egwuatu of the Federal Excessive Courtroom, Abuja, on Tuesday.
The decide noticed that about 50,000 victims are affected by the funding fraud and emphasised the necessity for a speedy trial whereas the suspect stays in custody.
The EFCC alleged that Michael and his firm, between September 2022 and June 2023, in Abuja, whereas not being a {bank} or an authorised entity to take deposits, invited the general public by ads to deposit funds with Afriq Arbitrage System Restricted.
This, in line with the Fee, is in contravention of Part 44(1) of the Banks and Different {Financial} Establishments Act, 2020, and is punishable below the identical Act.
The EFCC additional accused Michael and his firm of partaking within the specialised enterprise of monetary companies, together with funding administration, with out a legitimate license.
“That you just, JESAM MICHAEL UBI, and AFRIQ ARBITRAGE SYSTEM LIMITED, between October and December 2024 in Abuja, throughout the jurisdiction of this Honourable Courtroom, transformed the cumulative sum of N590,000,000.00 (5 Hundred and Ninety Million Naira), being a part of the funds generated from the sale of properties recovered from Oluwasesan Abayomi—specifically, Ologolo Road, off Lekki-Epe Expressway, and No. 1 Nnamdi Azikiwe Street, Lakowe Golf Property, Lekki, Lagos—understanding that the funds constituted proceeds of illegal exercise. You thereby dedicated an offence opposite to Part 18(2)(b) of the Cash Laundering (Prevention and Prohibition) Act.”
“That you just, JESAM MICHAEL UBI, and AFRIQ ARBITRAGE SYSTEM LIMITED, someday in 2022 in Abuja, with intent to defraud, induced Ladi Musa Audu to deposit the sum of $844,416.36 USDT into the Afriq Arbitrage System funding scheme, below the false illustration that the funding was protected and refundable upon request. You knew this illustration to be false, thereby committing an offence opposite to Part 1(2) of the Advance Payment Fraud and Different Associated Offences Act No. 14 of 2006 and punishable below Part 1(3) of the identical Act.”
“That you just, JESAM MICHAEL UBI, and AFRIQ ARBITRAGE SYSTEM LIMITED, someday in February 2023 in Abuja, with intent to defraud, induced Sir Augustine E. Ibolo to deposit the sum of $10,000.00 USDT into the Afriq Arbitrage System funding scheme, below the identical false assurances. This additionally constitutes an offence below the identical Advance Payment Fraud Act,” the EFCC prices, filed by E.E. Iheanacho, SAN, partly learn.
On the arraignment earlier than Justice Obiora Egwuatu on Tuesday, Uchenna Njoku SAN introduced his look for Michael and the corporate, whereas Martha Babatunde, counsel for the EFCC, introduced her look.
“Before now, the defendant has no prison document,” the senior lawyer mentioned, emphasizing that the EFCC had granted Michael administrative bail.
She contended that there are over 50,000 traders affected by the rip-off and that the EFCC was nonetheless receiving petitions in opposition to Michael.
“That additional to paragraph 3 (1), the Fee remains to be receiving different petitions in opposition to the Applicant and investigation has revealed that there are over 50,000 traders into the Applicant’s failed funding scheme,” her affidavit partly reads.
Ruling on the bail software, Justice Egwuatu mentioned a suspect is entitled to bail in keeping with Constitutional provisions.
The decide noticed that the EFCC had granted the suspect bail however later opposed the granting of bail by the courtroom.
Having thought of the information, the decide mentioned it’s in one of the best curiosity of Nigeria and the affected traders “to refuse the defendant bail.”
Nairametrics beforehand reported that Justice Emeka Nwite, a trip decide on the time, had on Could 9, 2025, refused the bail software of Jesam Michael.
Justice Nwite refused the bail movement filed by Michael’s authorized group, emphasizing {that a} cost had already been filed in opposition to him.
The decide directed that his arraignment should happen earlier than any bail software could be thought of.
