The Federal High Court in Abuja on Friday refused the bail application of Jesam Michael, CEO of the Afriq Arbitrage System (AAS) cryptocurrency trading platform, amid charges of an alleged $844,416.36, $10,000, and N590 million investment fraud instituted against him by the Economic and Financial Crimes Commission (EFCC).
Justice Emeka Nwite ruled on the motion filed by Michael’s legal team, emphasizing that a charge had already been filed against him, and his arraignment must take place before any bail application can be considered.
Nairametrics previously reported that the EFCC filed charges against Michael and his cryptocurrency company for alleged investment fraud involving $844,416.36, $10,000, and N590 million.
The seven-count charge was disclosed in an EFCC affidavit presented before Justice Nwite in April, as part of the Commission’s response to Michael’s bail application.
Bail Request Dispute
At the bail hearing before vacation judge Justice Nwite on April 22, 2025, Emmanuel Agabi, counsel for Michael and the company, argued that his client had already been in custody for 90 days under the police and EFCC.
Agabi submitted a further affidavit in support of his client’s release, stating that the nature of the alleged offence should not warrant denial of bail.
Mary Babatunde, counsel for the EFCC, responded that she had filed an affidavit to show cause why Michael should not be granted bail, as directed by Justice Obiora Egwuatu, the original judge assigned to the fundamental rights case.
She noted that at the time Michael’s lawyers filed for bail, no formal charge had been filed.
However, she said the EFCC has since filed a charge dated April 16, 2024, and intends to arraign Michael once the case is assigned to a judge.
The EFCC stated that Michael was arrested while attempting to leave Nigeria and is unlikely to return to face trial, given the gravity of the charges and weight of the evidence.
The Commission argued that no number of sureties could guarantee his appearance in court.
“The temptation to jump bail is high, especially now that the charges have been filed,” the EFCC stated.
“The EFCC has also received additional petitions from several other victims of the applicants’ alleged offences.”
Court’s Ruling
Ruling on the bail application on Friday, Justice Nwite said he had considered the submissions of both parties.
- He held that, given the nature of the case and the fact that a charge has already been filed, the interest of justice would be best served by addressing the bail application in the court where the charge is pending, so that arraignment and bail can be handled together.
- Therefore, the judge ruled that the bail application is refused.
What You Should Know
According to the EFCC’s charge previously reported by Nairametrics, Michael and his company, between September 2022 and June 2023 in Abuja, allegedly invited the public to deposit funds with Afriq Arbitrage System Limited, despite not being a bank or an authorized financial institution.
This, according to the Commission, contravenes Section 44(1) of the Banks and Other Financial Institutions Act, 2020, and is punishable under the same Act.
The EFCC further accused Michael and his company of engaging in the specialized business of financial services, including investment management, without a valid license.
This allegedly resulted in investment fraud amounting to $844,416.36, $10,000, and N590 million.
