Court Denies Bail to Afriq Arbitrage CEO Jesam Michael Over Alleged $844K Crypto Investment Fraud
The Federal High Court in Abuja has rejected the bail application of Jesam Michael, the CEO of Afriq Arbitrage System (AAS), a cryptocurrency investment platform, who is facing accusations of fraud involving over $844,000, $10,000, and ₦590 million.
On Friday, Justice Emeka Nwite ruled that Michael’s bail request could not be considered until after his formal arraignment, as the Economic and Financial Crimes Commission (EFCC) has already filed charges against him. The EFCC claims that between September 2022 and June 2023, Michael and AAS solicited investments from the public under the pretense of cryptocurrency trading, despite not having the required financial institution license. The commission also alleges that Michael tried to flee the country before his arrest, presenting a high flight risk.
During the hearing, Michael’s lawyer, Emmanuel Agabi (SAN), argued that his client had been in custody for 90 days and that the nature of the charges shouldn’t prevent a bail hearing. However, EFCC prosecutor Mary Babatunde countered, asserting that the charges were formally filed on April 16, 2024, and that the defendant should be arraigned before any consideration of bail. She also noted that additional victims had come forward with new petitions, and no surety could guarantee Michael’s appearance at trial.
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Justice Nwite agreed with the prosecution, emphasizing that the case should proceed to arraignment first. “The proper venue to consider bail is the court where the charge is pending,” the judge stated.
Court documents show that Michael and AAS face seven charges under the Banks and Other Financial Institutions Act (BOFIA), 2020, including operating as an unlicensed financial institution and unlawfully managing investments. The EFCC maintains that Michael deceived investors by promising high returns on cryptocurrency arbitrage without the necessary legal approval to collect deposits or manage funds.
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