The Nigerian police high command has allegedly been compromised in handling the case of Jesam Michael, CEO of Afriq Arbitrage System (AAS), who was arrested for fraud and financial misconduct.
Sources informed SaharaReporters that Michael, identified as one of Nigeria’s cryptocurrency fraudsters, is accused of defrauding investors of $87.6 million. Numerous victims claim they have been unable to withdraw their principal funds or promised returns from AAS for over 18 months.
Additionally, sources disclosed that the police hierarchy has been protecting Michael, even going as far as arresting and detaining over four individuals for cyberbullying in connection to his case. These individuals were held by the Special Investigation Unit of the Inspector General of Police (IGP).
A source revealed that the police high command is compromised, stating that Jesam Michael duped subscribers of over $87.6 million, yet managed to get the police to arrest and detain over four persons for cyberbullying. Although they were later released, they were detained for a considerable period because of him.
Further investigations revealed that after Michael’s arrest by the Nigeria Immigration Service, in collaboration with the police, the police hierarchy is allegedly working on securing his release. A source stated that now that he is arrested by Immigration along with the police, efforts are already underway to get him bailed out.
On January 30, 2025, SaharaReporters reported that Michael’s arrest followed an investigation into Afriq Arbitrage System’s financial dealings and the management of investors’ funds.
According to Nigerian police spokesperson Muyiwa Adejobi, the case began when Michael reported to the IGP Special Investigation Unit (SIU) that he was defrauded of $87 million by Abayomi Segun Oluwasesan. While Oluwasesan admitted to fraud, he disputed the amount involved. Suspicion grew when Michael transferred the recovered assets into his personal name instead of Afriq Arbitrage System’s, raising concerns about his true intentions.
Further investigations into AAS operations revealed that investors had been unable to withdraw their funds or returns for over 18 months. Despite multiple requests from law enforcement, Michael failed to provide credible proof of legitimate trading activities, a repayment plan for affected investors, or verifiable medical records for a surgery he claimed had impacted his ability to manage AAS operations.
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In a statement, the police said his lack of credible evidence, especially concerning his claimed health issues, which he suggests hindered his ability to grant full system access, raised serious questions about his credibility and the integrity of AAS.
Documents obtained by SaharaReporters reveal that Michael was involved in a similar scheme in the United States, where he withdrew funds from a cryptocurrency platform before it was shut down by the State of California.
In May 2022, his firm stopped honoring investor withdrawal requests, citing technical issues. Shortly thereafter, the platform’s website ceased operations.
Exclusive documents revealed that the State of California ordered a shutdown of Michael’s cryptocurrency firm, Cryptos OTC Trading Platform Limited, in 2022 for violating sections 25110 and 25401 of the state’s Corporations Code.
The Department of Financial Protection and Innovation (DFPI) in California described the platform as a Ponzi scheme, emphasizing that the company fraudulently lured investors into a High Yield Investment Program (HYIP).
According to official records, Michael’s firm promised a 3% daily return to investors, used a referral system structured like a pyramid scheme, prevented investors from withdrawing funds by falsely claiming technical issues, and eventually disappeared after claiming its website had been hacked.
To date, investors have not received their principal investments or promised returns, and the company has ceased communications.
The California Commissioner stated that in connection with the offer or sale of these securities, COTP made material omissions to potential investors, including failing to disclose that the offer or sale of its investments was not qualified in California, failing to disclose the identities of the individuals operating and managing COTP, and failing to disclose that it used investor funds to pay purported profits to other investors in the manner of a Ponzi scheme.
With Michael now in police custody in Nigeria, concerns remain about whether law enforcement will properly prosecute him or continue shielding him as alleged. As investors continue demanding justice, the handling of this case may test the credibility of Nigeria’s law enforcement agencies and their commitment to tackling financial crimes.
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