Nigeria arrests creator of Pinkoin cryptocurrency

Nigerian authorities arrested Omotade-Sparks Amos Sewanu, the founder of the largest pyramid scheme InksNation, whose activities caused losses exceeding 32 million naira (over $77,800). The information was released by the local Economic and Financial Crimes Commission (EFCC).

The Sokoto Zonal Office of the EFCC have arrested Omotade-Sparks Amos Sewanu, operator of the Inks Nation Ponzi Scheme.
The suspect who had been at large, was finally arrested on Thursday May 27, 2021 and has made useful statement. https://t.co/fw6w4ByUVU

— EFCC Nigeria (@officialEFCC) May 30, 2021

According to the agency, since 2019 Sewanu urged Nigerians to invest in the digital currency Pinkoin he had created, promising several-fold profits.

“The suspect allegedly promised to eradicate poverty in Nigeria within six months, paying every citizen 120,000 naira ($291) each month, including newborns,” EFCC said.

As part of the InksNation project, he issued the Pink Card payment card. To bolster trust in the company, Sewanu claimed to be a partner of the EFCC. He did not hold a licence to operate a financial institution.

In the summer of 2020, the Nigerian Blockchain Technology Association classified Pinkoin as a Ponzi scheme. Sewanu had been on the run since November 2020.

The suspect has been arrested pending trial.

In March, the United States District Court for the Southern District of New York ordered Benjamin Reynolds, the operator of the bitcoin pyramid Control-Finance, to pay $143 million in restitution to clients and $429 million in penalties.

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