The U.S. Securities and Exchange Commission has charged three Nigerian nationals with defrauding investors of $2.9 million in Bitcoin. 

According to the SEC, the individuals used fake websites, social media, and voice-altering software to impersonate legitimate financial professionals, targeting at least 28 victims.

The defendants — Chibuzo Augustine Onyeachonam, Stanley Chidubem Asiegbu, and Chukwuebuka Martin Nweke-Eze — allegedly posed as brokers and advisers from well-known U.S. firms. 

They created websites mimicking real professionals, complete with fake testimonials from supposed clients. They used social media and group chats to lure investors into trusting them.

Victims were asked to buy Bitcoin (BTC) through legitimate exchanges and then transfer the funds to the fraudsters’ blockchain wallets. To make the scam more convincing, the defendants created fake investment platforms that showed false portfolio growth, tricking investors into believing they were making profits.

Legal action

The SEC filed charges in a New Jersey federal court, accusing the defendants of violating U.S. securities and investment laws. The SEC is seeking penalties that include returning the stolen funds with interest and imposing fines. 

Separately, the U.S. Attorney’s Office in New Jersey has filed criminal charges against the three individuals.