A Nigerian man has been fined over $50,000 after his attempt to defraud a United States citizen of cryptocurrency was foiled.
The Kansas Attorney General’s Office said Bimbo Toyin Akinyemi, a Nigerian national, promised the victim a large return for investing in cryptocurrency.
Court documents show that Akinyemi and his victim had an agreement on 15 July 2023, where the victim was to purchase Bitcoin and deposit it into Akinyemi’s ‘investment wallet address,’ with an expected return of $500 to $1,240.
BitKE reported the news on Monday via its X handle.
Akinyemi exploited the victim’s lack of understanding of cryptocurrencies, misleading him by concealing the traceability of fund transfers and falsely claiming that depositing funds into a digital wallet would ‘activate’ it as an investment account. After receiving the deposits, he transferred the funds to his own account.
🇺🇸 🇳🇬REGULATION | State of Kansas, U.S., Thwarts Attempt by Nigerian Crypto Scammer to Defraud Resident Attracting Over $50,000 in Civil Penalties
According to the Attorney General’s Office, the victim is entitled to a refund of the $250 investment and Akinyemi is responsible… pic.twitter.com/uEuLa5kmC8
— BitKE (@BitcoinKE) September 9, 2024
A fraudulent $1,000 cheque was then sent to the victim, which was never cashed.
The Kansas Attorney General’s Office stated that the victim is entitled to a refund of their $250 investment, and Akinyemi is responsible for $50,000 in civil penalties for five violations, $4,000 in investigation fees and expenses, and all court costs.
The Charities and Financial Scams Unit of the Attorney General’s Office filed a lawsuit against Akinyemi under the Kansas Consumer Protection Act.
Authorities seized Akinyemi’s wallet, which reportedly contained half of a Bitcoin valued at over $28,900, as well as other digital currency worth more than $4,000.
A local judge issued a default judgment against Akinyemi after they failed to respond to the summons and petitions sent to their email address. In addition to the financial penalties, Akinyemi has been prohibited from engaging in consumer transactions within the state.
