The Economic and Financial Crimes Commission of Nigeria —organisation incharge of tracking down fraudulent activities in the country is set to investigate Paxful NG.
According a petition by United Global Resolve for Peace, a Non-Governmental Organisation. The accounts of many Nigerians trading on Paxful had been deactivated and the funds in it trapped.
UGRP Executive Director, Shalom Olaseni had signed a petition in correspondence to the allegations noting that illegal actions were taken despite the fact that accounts were fraudulent free.
The petition reads— “A few days ago, our organisation was approached by some Nigerians who complained bitterly that Paxful Incorporated, the company that owns the online cryptocurrency trading and exchange platform, ‘https://paxful.com’ has been ripping them 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 investigation and finding that they were not involved in any fraudulent activities.”
It added, “The respondent has, through willful disregard for contract and rules of commercial transaction, done a lot to rob Nigerians of their hard-earned money by its unrestrained activities of blocking their accounts and stating that investigation will be conducted. At the end of the investigation, the respondent always comes out to say the vendor has done nothing wrong and thereafter release their accounts without the funds in it”.
One of the victims affected, Samuel Olarenwaju said that he had lost up to $60,000 worth of bitcoin from Paxful following the event unfolding from the platform. Samuel claimed the issue started long time ago around November 2018, during which individuals accounts were shut down on the claims of possessing unverified accounts.
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We found out that Paxful had an upgrade in its verification process . Requiring users with some specific volume of trade to verify account. But upon verifications users will then lose their funds. Samuel testified he was investigated of having double profile after which he was found innocent but he can’t access his funds worth over $60,000.
Paxful however denied allegations posed against them over shutting down accounts indiscriminately. Saying that only errant ones were deactivated.
“All accounts that have been shut down have a reason for it. We will not shut down any account unless they violate our TOS (Terms of Service),” an emailed statement from the company said.
Tony Orilade, the acting EFCC spokesman said, “Based on the acknowledgement stamp on the petition, I can confirm that we have received it and we would investigate the allegations.”
More details will be released as they unfold.