With the high prevalence of Ponzi schemes out there, SiBAN is commending the efforts of the Securities and Exchange Commission. The SEC has saddled itself with the responsibility of tracking Ponzi schemes and plans to clamp down on them soon.
The SEC described the scheme as “money doubling.” However, a number of illegal fund managers have continued to rear their ugly heads in the space. They promise what unsuspecting members of the public consider mouth-watering profits that they can’t resist. These are Ponzi schemes that eventually burn investors’ fingers and negatively affect genuine investment opportunities.
SiBAN Chairman Paul Ezeafulukwe expressed his concerns about Ponzi schemes and their effect on Nigeria’s emerging blockchain & cryptocurrency space. “I acknowledge the SEC’s effort so far towards cleaning up the market and ensuring investor safety.”
“As a self-regulatory body in the blockchain and cryptocurrency space, we are concerned with the prevalence of Ponzi schemes in the country. Unfortunately, most of these Ponzi schemes pretend to deploy blockchain-powered or crypto-based investment opportunities to investors.”
Mr Ezeafulukwe, who is presently implementing internal measures at SiBAN, promised to help sanitize the space. “From time to time, SiBAN has published public notices to this effect, warning unsuspecting members of the public to stare clear of such illegal schemes.”
Our members, who are at the forefront of innovations, are prohibited from involving themselves in such schemes. And we continue to help sanitize the blockchain and cryptocurrency space in this regard.
However, SiBAN would need some level of institutional support from the SEC. There is a lot more we can do to protect investors and create new opportunities for the Nigerian economy.
Beyond public notice, SiBAN strongly believes that the SEC needs to effectively boost awareness of the illegal activities of Ponzi schemes in Nigeria across social media.
According to the General Secretary of SiBAN, Senator Ihenyen, “Nigeria’s cyberspace needs to be safer for all, including investors”. I see a need to develop an anti-Ponzi scheme or anti-scam awareness campaign that will go beyond the traditional media. Adequate awareness needs to be channeled toward social media such as Facebook, Instagram, LinkedIn, and Twitter. From there, there is the world of instant messaging, such as Telegram and WhatsApp.
The SEC needs to decentralize its awareness campaigns effectively. From our experience, Ponzi-scheme promoters use these channels more.”
Doris Ojuederie, the Chairperson of SiBAN’s Ethics, Complaint, and Disciplinary Committee, echoed the same point stated above. “We are a decentralized community, which makes SiBAN well-positioned to help SEC understand the space better and reach places. By working with us, SEC’s anti-Ponzi scheme awareness campaigns could be taken to Facebook, WhatsApp, Telegram, and other online communities.
“To play well and play effectively, we recognize that players need to engage regulators continually. And vice versa. More so, this will give the SEC an opportunity to understand our ecosystem. This will go a long way to send the guys with bad intentions far away while real projects attract investments and thrive.” Doris Ojuederie stated,
SiBAN advises members of the public always to be alert. Last year, SiBAN introduced its scamalert@siban.org.ng, a dedicated email address for any person who wishes to alert SiBAN about any scam in Nigeria’s blockchain & cryptocurrency space.