According to a ‘wanted’ feature on The Nation, a Nigerian newspaper, the founder of InksNation and Pinkcoin, Omotade-Sparks Amos Sewanu, is wanted by the EFCC.
The Economic and Financial Crimes Commission of Nigeria (EFCC) issued the wanted warrant for Amos Sewanu over a fraud case involving funds worth 32 million Naira (over $80,000).
The statement placed in the wanted section in The Nation newspaper said:
The Public is hereby notified that Omotade-Sparks Amos Sewanu of Inksnation whose photograph appears above is wanted by the Economic and Financial Crimes Commission EFCC in a case bordering on obtaining by false pretense, names Dropping and Fraud to the tune of thirty Two million Naira Only (32,000,000) while claiming to have floated an online digital currency called Pinkoin.
Pinkcoin, the flagship project under Inksnation, grew to prominence this year as the pyramid scheme promised large returns. Over 200,000 members joined the project’ chat group, with many hitting the streets in Nigeria to onboard new users.
Before declaring Amos Sewanu wanted, the Security and Exchange Commission of Nigeria flagged the Pinkcoin and Inksnation as unregulated and asked the public to avoid the project.
A circular published by SEC Nigeria in June 2020 said:
The attention of the Commission has been drawn to the activities of iBSmartify Nigeria the promoters of a Blockchain known as iBledger (iBcashcryptocurrency) and InksNation.
In view of the above, the general public is hereby WARNED that any person dealing with the said entity and others in the same business in any manner whatsoever, does so at his/her own risk.
Major groups and influencers in the Nigerian cryptocurrency ecosystem called out Pinkcoin right from the start. These warnings were met with criticism by supporters of the project. Some even believed that Pinkcoin was ‘god-sent.’
SiBAN, Nigeria’s Blockchain Association, also issued a statement on Pinkcoin after the project claimed to be a member of the organization.