Afriq Arbitrage System (AAS) or Afriq JM Arbitrage System labels itself as a “digital currency trading platform that uses high-frequency trading and algorithms” to trade cryptocurrencies for profit. The platform claims to pay out anywhere between 1.65% to 5% in daily interest to investors while requiring them to invest at least $20 to earn the returns.
However, an independent Afriq Arbitrage System (AAS) review reveals that the platform operates on a ponzi-like model and thus poses a significant risk to investors. This report is presented for informational purposes to allow readers to reach their own conclusions about AAS, which understandably would be similar to ours.
What is Afriq Arbitrage System (AAS)?
According to its website, Afrique Arbitrage System is the easiest way to invest in cryptocurrency. Users do not require any trading or investing skills. Instead, they simply have to deposit at least $20 to earn the minimum 1.65% interest.
Where does the profit come from? The entities behind AAS claim to have developed “high-frequency trading and algorithms to automatically buy digital currencies at lower prices and sell them at higher prices to generate returns.” AAS also claims to have “built a world-class digital exchange” that has created a top-notch wealth space for investors globally.
The platform appears to mainly target Nigerians, led by its CEO Jesam Michael, who has built a cult-like following of so-called “Spartans” by claiming to be half-man, half-spirit.
AAS functioned for at least 90 days from the start of 2023, marking its three months in operation back on March 31. However, the platform appears to have run into a deep crisis that has led to investors being unable to withdraw their funds for several months. Or so it is meant to appear to the public.
Further investigation uncovers that Afriq Arbitrage System (AAS) deploys an age-long ponzi-driven earning system. Investors must especially be wary of the facts present below, especially as AAS looks all set to relaunch its attempt to defraud unsuspecting investors.
Is Afriq Arbitrage System Legit?
Afriq Arbitrage System is largely fraudulent and operates on an unsustainable business model that would eventually lead to irrecoverable losses for investors. The facts below speak for themselves.
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Bogus Company Registration
One of the strongest pointers that the Afriq Arbitrage System (AAS) uses to attract unsuspecting investors is that the platform is incorporated in the United States with a Certificate of Good Standing from the Colorado Secretary of State, Jena Griswold.
(Source: AAS website)
However, the said certificate is largely bogus and does not prove that the company is reputable as it wants users to believe. According to information on the Colorado Secretary of State (SoS) website, the certificate simply means that the entity has met “statutory filing requirements.”
The agency quickly reminds the investing public that the “office does not review or verify information submitted in those filings. This office also does not regulate or investigate business practices or operations.”
(Source: Colorado Secretary of State’s website)
Meanwhile, the latest information from the SoS database shows that the company Afriq Arbitrage System LLC was voluntarily dissolved on July 5. A voluntary dissolution means that the company’s shareholders have decided to close the business.
This information is especially noteworthy as Afriq has not updated its website to reflect its current corporate standing or informed its community. Coupled with an earlier attempt to deliberately pose as reputable using a bogus certificate of good standing, it adds to evidence that the business is fraudulent.
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Unsustainable Returns and Opaque Business
Afriq Arbitrage System operates a Ponzi-like model that pays investors a guaranteed 1.65% daily return. The unsustainable profits were evidently sourced from deposits by new registrants within the period the scheme lasted. The platform periodically offered up to 5% in daily interest, paying out 5% of these returns to investors who encourage their friends to sign up.
The platform also includes other bogus measures, such as a $10k withdrawal limit, trading cycles, and a promise of being able to handle 3.5 million withdrawals within a minute.
Despite claims of being decentralized and using a liquidity pool, AAS never publicly disclosed the exchanges on which it traded user funds or its cryptocurrency addresses. Users must deposit assets and trust that the “system” trades funds on their behalf. There is no public data on the amount it has received from investors, how much it has earned, or indeed the number of users.
Additionally, neither its CEO nor team has demonstrated the technical prowess required to build the proprietary Algorithmic or High-Frequency Trading infrastructure that underpins AAS business. The official AAS social media handles are rife with bold cap texts and grammatical errors that are below par with the system the company has claimed to build.
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Public Binance Disclaimer
While the founders of Afriq Arbitrage System have occasionally claimed affiliation with Binance liquidity pools, the leading cryptocurrency exchange has publicly issued a disclaimer against AAS.
In a post dated May 19, 2023, Binance’s Africa-focused Twitter handle tweeted:
#Binance is not affiliated, connected or associated with AAS Afriq Arbitrage System in any way. Any claim that Binance is associated with or endorses AAS Afriq Arbitrage System is unauthorized and false.
Please stay vigilant and safe & watch out for AAS Afriq Arbitrage System.
— Binance Africa (@BinanceAfrica) May 19, 2023
Afriq Arbitrage did not accept or deny Binance’s allegations which likely exacerbated issues for its already troubled community. Since April 2023, AAS investors have reported being unable to withdraw funds from the platform. The founder claims the platform suffered a security breach.
Is the Afriq Arbitrage System (AAS) Hack an Exit Strategy?
After a period of lengthy silence between mid-April and June, AAS broke its media hiatus with an update on June 25. Hackers had allegedly stolen an undisclosed amount from the platform. The company also alleged that one of its web developers, Abayomi Segun Olasesan, collaborated with external agents to execute the hack and that the culprits are now under custody.
Nearly two weeks following the alleged hack, the shady company is yet to disclose how much it lost to the attack, the number of affected users, and its compensation plan. Instead, Afriq Arbitrage System (AAS) claims to be readying to resume operations while supposedly pursuing justice against its attackers. This approach is typical of how fraudulent entities exit the scene after swindling investors.
The foregoing evidence suggests that such a reopening would be another deliberate attempt to separate unsuspecting investors from their hard-earned money. A falsified reputation, unsustainable returns, and a public disclaimer from the world’s largest crypto exchange are only a handful of pieces of evidence showing that Afriq Arbitrage is fraudulent.
