Court sets July 22 to rule on Afriq Arbitrage’s CEO bail application over fraud case

A Federal High Court in Abuja has fixed July 22, 2025, to rule on a fresh bail application filed by Jesam Michael Ubi, Chief Executive Officer (CEO) of the cryptocurrency trading platform Afriq Arbitrage System (AAS).

Michael is being prosecuted by the Economic and Financial Crimes Commission (EFCC) on a seven-count charge bordering on money laundering and advance fee fraud, in connection with an alleged investment scam involving $844,416.36, $10,000, and N590 million.

Justice Obiora Egwatu fixed the ruling date on Monday after Michael’s new counsel, Kanu Agabi (SAN), moved the latest bail request, which was opposed by the prosecution counsel, Geraldine Ofulue.

Agabi, a former Attorney General of the Federation, assured the court that the defendant would not abscond, citing the involvement of a strong legal team. However, Ofulue reminded the court that bail had already been denied on several grounds, including the safety of the defendant, due to the large number of alleged victims—estimated at over 500,000.

On May 9, while acting as a vacation judge, Justice Egwatu declined to hear an earlier bail application on the grounds that Michael had not yet been arraigned. A subsequent request was denied on June 10, with the judge ordering the defendant’s remand in prison and citing ongoing petitions from additional victims.

The judge noted that the EFCC had revealed there were over 50,000 investors in the failed scheme and that keeping Michael in custody was in his own interest, pending the conclusion of trial. He ordered that Michael be transferred from EFCC custody to Kuje prison and directed an accelerated hearing.

Trial commenced in June, with the prosecution already calling two witnesses before the fresh bail request was filed.

According to the charge sheet marked FHC/ABJ/CR/134/2025, Michael and Afriq Arbitrage System Ltd were accused of luring investors to deposit funds into their platform without authorisation, in violation of Section 44(1) of the Banks and Other Financial Institutions Act, 2020.

The EFCC also alleged that the firm operated without a license and engaged in investment management and financial services. Between October and December 2024, the defendants allegedly converted N590 million, reportedly proceeds of criminal activity, linked to the sale of recovered properties from one Oluwasesan Abayomi.

One of the counts also accused Michael of inducing Ladi Musa Audu to invest $844,416.36 USDT in the platform under the false promise of safety and refundability, an offence under Section 1(2) of the Advance Fee Fraud and Other Related Offences Act No. 14 of 2006.

The EFCC said the case illustrates a broader crackdown on unauthorised financial services and crypto fraud in Nigeria.