One of Nigeria’s most brazen crypto scams, Inksnation remains operational and still invites new investors some three months after the country’s Securities and Exchange Commission (SEC) deemed its activities illegal. The SEC has previously warned Nigerians against investing with the scam saying doing so would be at own risk as there is no legal recourse in event of the scam collapsing.
False Blockchain claims
The SEC warning had been prompted by fears that Nigerians are falling victim to yet another giant scam that rides on the growing popularity of cryptocurrencies. Described as the “World’s First Charitable Trust DAO”, the Inksnation masterminds claim they can “end poverty in any country in less than 9 months (by) incentivizing goodness, promoting love and equitable distribution of wealth.” On their website, the scammers offer a convoluted and sometimes confusing explanation of their operations and how the business generates revenues for investors.
Prior to the SEC warning, another organization, the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), went as far as to label Inksnation’s purported crypto coin, pinkoin a scam.
SIBAN says, “Inksnation is not on any blockchain” while the scam’s purported blockchain, the Inksledger “is not public and may as well be inexistent.”
Still, it appears the warnings have not had the desired effect as desperate Nigerians still flock to the scam. At the same time, the masterminds behind Inksnation seem unfazed by any possible legal consequences, as they are reported to have enlisted the services of a prominent Nigerian law firm, which specializes in blockchain and crypto law.
Besides enlisting the services of the law firm, the creators of the scam have also tapped into the religious beliefs of potential victims. Enterprising scammers now exploit Nigeria’s well-known background as a divided but deeply religious state to fend off scam allegations.
For instance, in a letter addressed to…