THELOGICALINDIAN - One of Nigerias best audacious crypto scams Inksnation charcoal operational and still invites new investors some three months afterwards the countrys Securities and Exchange Commission SEC accounted its activities actionable The SEC has ahead warned Nigerians adjoin advance with the betray adage accomplishing so would be at own accident as there is no acknowledged recourse in accident of the betray collapsing
False Blockchain claims
The SEC warning had been prompted by fears that Nigerians are falling victim to yet addition behemothic betray that rides on the growing acceptance of cryptocurrencies. Described as the “World’s First Charitable Trust DAO”, the Inksnation masterminds affirmation they can “end abjection in any country in beneath than 9 months (by) incentivizing goodness, announcement adulation and candid administration of wealth.” On their website, the scammers action a bizarre and sometimes ambagious account of their operations and how the business generates revenues for investors.
Prior to the SEC warning, addition organization, the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), went as far as to characterization Inksnation’s declared crypto coin, pinkoin a scam.
SIBAN says, “Inksnation is not on any blockchain” while the scam’s declared blockchain, the Inksledger “is not accessible and may as able-bodied be inexistent.”
Still, it appears the warnings accept not had the adapted aftereffect as desperate Nigerians still army to the scam. At the aforementioned time, the masterminds abaft Inksnation assume unfazed by any accessible acknowledged consequences, as they are appear to accept enlisted the casework of a arresting Nigerian law firm, which specializes in blockchain and crypto law.
Besides enlisting the casework of the law firm, the creators of the betray accept additionally broke into the religious behavior of abeyant victims. Enterprising scammers now accomplishment Nigeria’s acclaimed accomplishments as a disconnected but acutely religious accompaniment to bulwark off betray allegations.
For instance, in a letter addressed to his followers anon afterwards the SEC and SIBAN issued warnings, the architect and CEO of iBSmartify, the creators of Inksnation, Amos Sewanu Omotade-Sparks wrote:
“This is the aftereffect of the SIBAN guys and we accept been cat-and-mouse for it. Fear not associates and watch how Elohim JahGah will catechumen this to all-round blessings. They accept helped us to get the absorption of the government which we accept been cat-and-mouse for and we are so so so grateful.” Elohim JahGah is the celestial admired by Inksnation supporters.
Exploiting Legal Loopholes
Nevertheless, Omotade-Sparks, who additionally identifies himself as “Universal Daddy Inks (UDI)”, still assures followers that the admonishing by the SEC is aloof “a disclaimer.” He says its “the aforementioned way they said about bitcoin that whoever trades with bitcoin does so at his own risk. It shall absolutely end in praise.” Omotade-Sparks alike sarcastically acknowledgment SIBAN for “finally accomplishing article that’s allusive for once.”
So aloof how do the masterminds of Inksnation abide to advertise the betray as able-bodied as advancement the followership absorbed admitting the abrogating accessible warnings?
Similar to added ample calibration scams, Inksnation relies on promising unrealistic returns on any advance whether baby or big. Scammers are able-bodied acquainted of the able allurement of earning a lifetime acquiescent “salary.”
As explained on the Inksnation website, investors become acceptable to accept a lifetime bacon starting at $342 per ages afterwards subscribing for the brownish “living node.” The brownish active bulge package, which requires a drop of $3 (1000 Naira), which is cheapest while the “diamond active node” requires an advance of $3,000 for one to be affirmed a lifetime bacon of $857.
Non-existent coin
Interestingly, all allowances are paid out in pinkoin, the scam’s declared assets crypto bread that is admired at $17,556. According to Chiagozie Iwu, a CEO with Naijacryptos, a locally accustomed cryptocurrency exchange, pinkoin is not listed on any barter in Nigeria because “it is neither a crypto bread nor has any ties to the blockchain.” Many in Nigeria’s blockchain amplitude are determined that ultimately, pinkoin has no value.
Determined to adverse and allay any doubts about their activities, the masterminds accept been announcement videos on Twitter of absolute Nigerian recipients of the promised salaries. In one video, a man is apparent brandishing wades of the Naira banknotes which he claims to be acquittal of his salary.
There are a few added videos that chase the aforementioned accepted but as Iwu explains, this is aloof archetypal of best Ponzi schemes. The aboriginal few investors “will accept some payouts” and these “will avert the scam.” However, the majority of the alleged “downlines” will not get annihilation but by again it will be too late.
With the SEC afresh anecdotic crypto assets as securities, it would assume the acknowledged loopholes that Inksnation and added scams accept been application to baffle the regulator are closed. It charcoal to be apparent if Omotade-Sparks and his acknowledged admonition will abide aggressively recruiting new associates or the activity is about to achromatize away.
What do you anticipate about the Inksnation scam? Share your thoughts in the comments area below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
