Jesam Michael, the embattled chief executive officer of Afriq Arbitrage System (AAS), is reportedly setting his sights on Nigeria’s lower legislative chamber despite facing serious allegations linked to a failed cryptocurrency scheme that left thousands of investors stranded
Michael, whose company is accused of withholding funds belonging to investors estimated at over $1.6 billion, is said to be preparing a bid to represent the Yakurr/Abi Federal Constituency of Cross River State in the 11th National Assembly.
Bail, Court Proceedings, and Regulatory Concerns
According to one of the affected investors, who identified himself as Ebenezer Udeagha (a pseudonym), Michael recently regained his freedom after fulfilling strict bail conditions imposed by a Federal High Court in Abuja.
Udeagha disclosed that the court granted Michael bail on February 9, setting the sum at ₦300 million. In addition, the court required him to provide sureties with verifiable landed properties in high-value areas of Abuja, including Asokoro, Maitama, and Gwarimpa.
“It took him several weeks to meet those conditions,” Udeagha explained. “He was eventually released last Friday after perfecting his bail.”
He further revealed that during a separate court session on February 23, the Securities and Exchange Commission (SEC) stated that Michael had operated AAS without securing the necessary licenses and approvals required to run such a financial operation.
Regulators reportedly told the court that the company failed to comply with basic operational requirements before launching, effectively rendering its activities illegal from the outset. The case remains ongoing, with further hearings scheduled for March.
Political Ambition Sparks Backlash
Michael’s reported political ambition has triggered outrage among investors who are still unable to access their funds.
Udeagha claimed that the AAS founder recently informed followers of his intention to contest in the 2027 general elections under the African Democratic Congress (ADC).
Describing the move as “shocking and deeply insensitive,” the investor questioned the motive behind the decision.
“He has not made any meaningful effort to refund investors, yet he is now talking about running for public office,” he said. “It feels like he wants to use political power as a shield while leveraging the very funds we lost to build a new public image.”
He further alleged that Michael could attempt to win public support by funding community projects with money allegedly sourced from investors, a move he described as both unethical and disturbing.
Jesam Michael Defends Move Into Politics
In response to growing speculation, Michael addressed his supporters through AAS’ official Telegram channel, confirming his political aspirations.
He framed his decision as a broader mission to influence policy within Nigeria’s rapidly evolving digital economy.
According to him, his experience navigating regulatory challenges in the crypto space highlighted the need for more knowledgeable representation in government.
Michael argued that innovation in blockchain and cryptocurrency often outpaces regulation, leaving room for misunderstanding and poor policy decisions.
He maintained that his goal is to contribute to the development of fair and forward-thinking regulations that protect investors while encouraging technological growth.
“I believe those who understand the digital asset ecosystem firsthand should play a role in shaping the laws that govern it,” he stated, while assuring investors that AAS’ long-term vision remains unchanged.
Community Verification and Political Platform
Checks across local online communities, including Facebook groups focused on Yakurr and Abi local government areas, appear to confirm that discussions around Michael’s political ambition are already gaining traction.
He is expected to run under the platform of the African Democratic Congress (ADC), with some grassroots support already emerging in parts of his home constituency.
Background: Rise and Collapse of AAS
Afriq Arbitrage System launched in January 2023, positioning itself as a cryptocurrency trading platform promising high returns through arbitrage strategies.
Within a short period, the platform attracted over 50,000 investors from 127 countries, many of whom were drawn by aggressive marketing and promises of consistent profits.
However, barely two weeks after operations began, users started reporting difficulties withdrawing funds from their accounts.
When concerns escalated, Michael attributed the issues to alleged cyberattacks and claimed urgent technical interventions were required.
By April 10, 2023, the platform had completely shut down, leaving investors unable to access their funds.
Subsequent investigations revealed that Michael had earlier obtained a Special Control Unit Against Money Laundering (SCUML) certificate from the Economic and Financial Crimes Commission (EFCC), a development critics argue may have lent the platform an undeserved sense of legitimacy.
He was eventually arrested on January 30, 2025, and his trial on fraud-related charges began in June of the same year at a High Court in Abuja.
In a related development, his transactional lawyer, Obeten Okoi, was also arrested in September 2025 over alleged involvement in the scheme.
Despite the ongoing legal battle, Michael’s recent release on bail and subsequent political move have intensified scrutiny, raising questions about accountability, regulatory oversight, and the intersection of wealth, influence, and politics in Nigeria.
