In line with a recent report by native news media ‘Punch’, Estonia-based renowned cryptocurrency firm named ‘Paxful Inc.’ has been accused of defrauding several of Nigerian investors worth in millions of dollars of cryptocurrencies via allegedly arbitrary account closures.
In line with the report, the Nigerian non-profit organization named UGRP [United Global Resolve for Peace] filed a petition recently on 2nd April with the country’s monetary watchdog, EFCC [Economic and Financial Crimes Commission], that outlines Paxful Inc.’s alleged malign practices and their impact on its Nigerian user base.
Signed by UGRP executive director named ‘Shalom Olaseni’, the petition adds:
“Cryptocurrency related trading and exchange platform namely ‘https://paxful.com’ has been splitting them of their life investment in cryptocurrency by suspending their accounts, deactivating their wallets and moreover refusing to return the worth in their accounts to them even after the ongoing investigation and finding that they weren’t involved into any illicit activities.”
The petition accuses the firm of “willful disregard for contract and rules of business transaction” in failing to re-activate access to user funds even when acknowledged investigations were found to be baseless.
The petition additional claims that Paxful generated around $20 Mln in profit via the exchange earlier in 2018, with Nigerian customers alleged to have provided for 40% of the revenue from trades in Bitcoin [BTC], Ethereum [ETH], Litecoin [LTC] along with other alternative cryptocurrencies.
One among the victim of this ‘alleged‘ scheme ‘Samuel Olanrewaju, told Punch news he had lost access to around 3 Bitcoins [BTC] that are worth over $15,750 USD at the reporting time, since November last year, claiming that the firm had incorrectly alleged him of making a fake user profile, and thereafter refused to further respond to his queries.
Paxful has for its part firmly denied its account and wallet closures have been arbitrary, claiming in an email to Punch that “all accounts that that have terminated, have a reason for it. We’ll not terminate any account unless they violate our TOS [Terms of Service].”
Acting EFCC interpreter ‘Tony Orilade’ confirmed with the news outlet that the watchdog had received the petition and would investigate the allegations within the upcoming few days.
Even earlier in March last year, the NDIC [Nigeria Deposit Insurance Corporation] ‘warned‘ its citizens against the employment of cryptocurrencies, outlining that they’re not approved by Nigeria’s central bank and also consequently not insured by the NDIC.