By Our Reporter
The Economic and Financial Crimes Commission (EFCC) has warned Nigerians against investment in Bitcoin which it described as a high risk activity.
The Head, Media and Publicity of the Commission, Mr Wilson Uwujaren disclosed this in a statement on Monday.
Uwujaren said that the risk factor of Bitcoin investment stemmed from the fact that the terrain was largely unregulated and prone to fraud.
He said that it had become necessary to raise the alarm following the rate Nigerians send petitions to the commission on fraudulent investments that promised high return with little risks to investors.
“This trend indicates that investment scams continue to thrive in spite of the enforcement and public enlightenment interventions by the commission and other stakeholders.
“The direct implication is that hapless citizens are losing their hard-earned money to fraudsters, compounding the nation’s economic woes,” he said.
According to him, many have lost and are still losing money to Ponzi schemes, forex trading and most recently Bitcoin trading.
He said that though risk-taking was considered by some as the driver of investment decisions, “the commission wishes to warn the public against taking unmitigated risk in desperation to earn a windfall.
“While the commission will continue to investigate and prosecute persons complicit in fraudulent investment schemes, it is incumbent on the investing public to be circumspect in their investment decisions,” he said.
Uwujaren said that any investment that promised returns that looked too good to be true needed to be considered a red flag.
“Nigerians are by this notice, warned to be wary of fraudulent schemes and are hereby enjoined to resist the temptation of quick gain that could end in misery,” Uwujaren said.
