Paxful Nigerian Users Saga; Millions of Dollars Trapped

Wilfred Michael 

Wilfred Michael

News reporter

08 April 2019,
12:44
Paxful Nigerian Users Saga; Millions of Dollars Trapped

The United Global Resolve for Peace (UGRP), a Nigerian non-profit organization has reportedly submitted a petition to the country's watchdog known as the Economic and Financial Crimes Commission (EFCC).

According to a report by the local news agency, Punch, the petition is against Estonia-based cryptocurrency exchange, Paxful who has allegedly shut down accounts belonging to some Nigerian users.

The exchange has thus, restricted these users access to their crypto holdings worth millions of dollars and failed to reply messages from the affected individuals on how to resolve the matter.

The Punch quotes a section of the petition signed by UGRP's executive director, Shalom Olaseni as reading thus with regards to the seized funds,

“Paxful is ripping them [users] of their life investment in cryptocurrency by suspending their accounts, deactivating their wallets and refusing to return the value in their accounts to them even after an investigation and finding that they were not involved in any fraudulent activities.”

The petition goes ahead to claim to out of the $20 million profits that Paxful reported in 2018, Nigerian users accounted for up to 40% trading activity on the exchange.

A fraction of those figures came from Samuel Olanrewaju, a Paxful user who claimed the exchange denied him access to 3BTC (appr. $15,600) following the closure of Nigerian user accounts.

The exchange, on the other hand, did not offer enough insight into the closure but reportedly told Punch that “all accounts that have been shut down have a reason for it.”

Paxful also added, “we will not shut down any account unless they violate our TOS (Terms of Service).”

As per the report, the Nigerian EFCC has started investigations into the matter even though the country has most times warned citizens against using cryptocurrencies.

In another development, Stmarket.co reported earlier today that U.S based crypto exchange, Kraken is facing a $900,000 lawsuit by a former employee, Jonathan Silverman.

 

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