High-Profile Broker Accused of Orchestrating 2 Billion Naira Crypto Fraud

Nigeria’s anti-graft body, the Economic and Financial Crimes Commission (EFCC) of Nigeria has brought a prominent forex broker before a Federal High Court in Uyo, Akwa Ibom State, over allegations of a cryptocurrency scam exceeding 2 billion Naira.

Rufus John Isip, who owns ITM-IT Resources Limited, faces an 8-count charge related to fraudulent conversion, money laundering, and obtaining by false pretenses. The total amount in question is 2,022,081,172 Naira (Two Billion, Twenty-Two Million, Eighty-One Thousand, One Hundred and Seventy-Two Naira).

According to the EFCC, Isip was arraigned before Justice C. S. Onah of the Federal High Court in Uyo. As the director of ITM-IT Resources, Isip allegedly defrauded Michael Okon, Director of N-Rex Resources Limited, of 431,331,172 Naira under the guise of an investment in Vandera, an online investment platform whose domain is now up for sale on GoDaddy for the sum of USD$3,911.

Also, Isip is accused of converting 730,870,000 Naira (Seven Hundred and Thirty Million, Eight Hundred and Seventy Thousand Naira) into Bitcoin and transferring the funds into a Binance wallet.

Although Isip has pleaded not guilty, he has been remanded in custody, with the case adjourned to October 14, 2024, for the commencement of the trial.

The controversy surrounding Rufus John Isip first emerged online in 2022. Despite the serious nature of the allegations, he had been elusive until his recent court appearance.

Prior to his arrest, Isip was known for his extravagant lifestyle, often showcased his luxury cars and other acquisitions on social media, a common trait among individuals involved in cryptocurrency scams in Nigeria.

Isip’s frequent displays of luxury cars and other high-end acquisitions on social media, has drawn comparisons to another infamous Nigerian scammer, Ramon Abbas, known as Hushpuppi. Hushpuppi was apprehended by international authorities after his ostentatious online presence made him a target for investigation. Similarly, Isip’s lavish lifestyle may have contributed to the scrutiny that led to his current legal troubles.

Numerous Nigerian cryptocurrency scammers are deceiving unsuspecting individuals out of their hard-earned money by posing as real estate agents online and engaging in global dating scams. The global trend has resulted in a collaboration with international police to repatriate anyone caught in the country involved in the obscenity.

Terrorists Making Use of Cryptocurrency

In a separate development, Nigeria’s anti-graft body, the Economic and Financial Crimes Commission (EFCC), has emphasized that terrorists across the country are making use of Bitcoin and similar cryptocurrencies. The chairman of the commission, Ola Olukoyede, in July 2024 made the observation, saying cryptocurrency traders are assisting them in evading arrest, thereby making them untraceable.

While noting this, he mentioned that these traders do not know that those they are aiding are financiers of terrorism. He also stated that around 1,146 bank accounts that were recently frozen were found to be the leeways used by terrorists.

Speaking during an event organized by Civil Society Organizations at the Transcorp Hilton Hotel in Abuja, he said the EFCC is keeping an eye on cryptocurrency trading in an effort to nab those aiding and abetting terrorists across the country.