Jesam Michael, the Chief Executive Officer of cryptocurrency trading platform, Afriq Arbitrage System (AAS), has continued to exert influence from his cell at the Kuje Custodial Centre in Abuja, Chronicles Reporters has gathered.
Although remanded for alleged fraud, Michael is said to be leveraging his ties with senior officers in the Nigeria Police Force and the Department of State Services (DSS) to pursue personal vendettas and protect his interests.
According to leaked audio recordings, Michael allegedly paid N250,000 as a bribe to the Commissioner of Police in Cross River State, Rashid Afegbua, through a police legal officer, to ensure that his former lawyer, Obeten Okoi, was detained. Okoi was accused of falsifying documents in a property transaction worth N68 million.
Sources revealed that Michael’s real problem with his lawyer, who is also his kinsman, stemmed from suspicions that Okoi leaked sensitive details about his fraudulent dealings. This, according to him, led to his arrest and current prosecution.
Michael, who has been described as an international fraudster, was arraigned by the Economic and Financial Crimes Commission (EFCC) on June 10, 2025, before Justice Obiora Egwuatu. He faced seven-count charges bordering on fraud and engaging in financial services without a valid licence.
Following the arraignment, Justice Egwuatu denied him bail and ordered that he remain in custody.
Investigations by the EFCC revealed that Michael had defrauded Nigerians of $844,416.36, $10,000, and N590 million through fraudulent cryptocurrency transactions.
The presiding judge noted that the scam affected as many as 50,000 victims. He stressed the need for an accelerated trial to ensure justice is served while Michael remains in prison.
According to the EFCC, Michael and his company, Afriq Arbitrage System Limited, between September 2022 and June 2023, unlawfully solicited and received deposits from the public in Abuja. The commission stated that neither Michael nor his firm was a licensed financial institution, making his actions a violation of Section 44(1) of the Banks and Other Financial Institutions Act, 2020.
Chronicles Reporters learnt that Michael had first been arrested in February by the Nigeria Police Force in connection with the same investment scam.
In one of the leaked audio tapes, Michael was heard in a conversation between a supposed DSS operative and a police officer, identified as Bar. Victor Otu, who presented himself as the Commissioner of Police in Calabar. The DSS operative reportedly said she had spoken with the supposed Commissioner, who assured her that Obeten Okoi would not be granted bail.
Audio excerpt: “I called him the same day you gave me the number, maybe around 8 or 9 pm. He was at home. I greeted him and introduced myself, then confirmed if he was the CP in Calabar, and he said yes. I pleaded with him not to grant the suspect bail, and he assured me he wouldn’t. Later, I called to update you.”
Another leaked call featured a man identified as Barr. Edet, to whom Otu allegedly gave Michael’s contact. The call revealed how N250,000 was extorted under the guise of ensuring Okoi remained in detention.
In the recording, the caller challenged the impersonation, saying: “Why would you claim to be the CP, Cross River State? Otu told us you were the Commissioner, and we believed him. He even said the Inspector-General of Police called you personally, which was why the suspect wasn’t released. I gave him N250,000 because of this. Why would he use your name to deceive us?”
The caller went on to add: “The suspect’s name is Barr. Okoi Obeten. He was accused of falsifying land documents worth N68 million. The Area Command at Ugep arrested him before Otu insisted he be transferred to Calabar. On arrival, Otu gave us your number, claiming you were the CP. That’s why I’ve been addressing you as such. But now I know I was deceived.”
Meanwhile, Okoi has denied any wrongdoing. Speaking to Chronicles Reporters, he maintained that he was being blackmailed by Michael, who suspected him of leaking information that led to his arrest.
Okoi explained: “I only supervised the land purchase and prepared the agreement. Michael’s younger brother, Donatus Okoi, was the one who paid directly to the vendors. The issue arose when a surveyor discovered that the land was smaller than what was initially claimed. This was later resolved in a family meeting, but Michael stopped communicating with me afterwards. Shortly after, he was arrested.”
He further stated: “Michael is only trying to use the police to intimidate me because he believes I provided information about his fraud. The leaked voice notes clearly reveal his plot to humiliate and deal with me. He never transferred any money to my account for land purchase. All payments were made directly to sellers.”
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