The FBI has launched a sweeping investigation into Izunna Okonkwo, a high-flying Nigerian-American tech entrepreneur and co-founder of Pastel, over allegations that he played a central role in an insider trading and money laundering network believed to have generated more than $41 million from covert trades executed across several major U.S. companies.
Okonkwo, celebrated for his appearance on the Forbes 30-under-30 list in 2023 and admired as one of Africa’s rising tech visionaries, is now named as a person of interest in federal court filings tied to the scheme.
U.S. prosecutors described the network as an elaborate financial pipeline that leveraged confidential corporate acquisition plans for massive illicit gain.
According to documents submitted to the U.S. District Court for New Jersey, Okonkwo allegedly traded securities using classified, advanced acquisition information supplied by investment banker, Gyunho Justin Kim, with brokerage transactions reportedly executed through channels linked to Pakistan-born U.S. resident, Saad Shoukat.
A federal investigator familiar with the inquiry said the collaboration was deliberate and coordinated, stating: “This was not a casual or one-off trade. It evolved into a repeated, structured pattern intended to exploit privileged intelligence for shared profit.”
Court filings revealed that the trio’s relationship dates back to college networking and corporate internships in 2018.
However, investigators believe the association shifted into a criminal enterprise that relied on encrypted messaging apps, concealed brokerage accounts, and cross-border digital access points to conceal their activities and bankroll significant returns.
Furthermore, the FBI said digital footprints traced back to a London residence linked to Okonkwo raised red flags when it was discovered that the same address had been used to log into both his and Shoukat’s trading accounts during periods when sensitive deals were underway.
One filing reviewed by prosecutors indicated that Okonkwo agreed to allow trades conducted through his brokerage accounts in exchange for half of all profits generated.
“The agreement demonstrated an intentional financial partnership aimed at maximising profit while obscuring identity,” another law enforcement official indicated during the inquiry.
The filings outlined major corporate takeovers in which Okonkwo allegedly benefited, including Pfizer’s $5.4 billion acquisition of GBT, Amgen’s takeover of Five Prime, and Biogen’s buyout of Reata, profits that reportedly stretched from six-figure windfalls to multi-million-dollar margins.
The investigation also noted that only days after allegedly receiving $3.5 million tied to confidential Pfizer intelligence, Okonkwo’s Lagos- and Atlanta-based startup Pastel announced that it had raised $5.5 million in seed funding, further heightening questions around the source of the company’s capital pipeline.
Pastel, co-founded in 2021 alongside two fellow Stanford alumni, had been widely praised for developing offline software solutions for African small businesses.
Media profiles described the founders as redefining access to digital financial management tools in underserved markets.
However, the emerging scandal has cast a shadow over the startup’s celebrated reputation.
A legal analyst monitoring the case stated: “Allegations at this scale place enormous reputational pressure on any tech company, especially one backed by global investors.”
Federal prosecutors confirmed that the suspected insider trading ring pulled a combined profit of at least $41 million, naming Okonkwo among the beneficiaries.
While Kim already faces charges of wire fraud, insider trading, and money laundering, U.S. authorities have not yet clarified whether Okonkwo is in custody or will be extradited.
Records show that Okonkwo has operated his business ventures between Nigeria and the United States, maintaining a presence in Lagos’ rapidly expanding tech district of Yaba, as well as commercial space in Atlanta used during Pastel’s expansion phase.
Attempts to reach Okonkwo directly were unsuccessful. His startup’s spokesperson also declined to comment regarding the FBI inquiry.
As global scrutiny intensifies around regulatory compliance in venture-backed tech environments, this case signals a new phase in how cross-border tech founders may be held accountable for financial crimes committed across national jurisdictions.