The Federal High Court in Abuja has convicted two more Nigerian crypto companies, Egomsinachi Road Autos Limited and Chimera Log & Haulage Services Limited, for illegally conducting USDT-to-Naira transactions without a banking license.
Justice Joyce AbdulMalik convicted the two companies on Thursday following a plea bargain arrangement with the Economic and Financial Crimes Commission (EFCC).
The court also ordered the forfeiture of N50 million held in the companies’ accounts to the EFCC recovery account.
This marks the third reported conviction by the Federal High Court for illegal crypto trading.
On October 31, 2024, Nairametrics reported that Justice Inyang Ekwo of the court, in suit no: FHC/ABJ/CR/308/2024, convicted Official Gredo and ordered the forfeiture of its N140,000,000 to the Federal Government.
What Transpired in Court
- At their arraignment on Thursday, the companies were charged with failing to report any of their transactions to the Special Control Unit on Money Laundering (SCUML) of the EFCC, contrary to Section 11(3) of the Money Laundering (Prevention & Prohibition) Act, 2022.
- They were accused of trading United States Dollar Tether (USDT) for Naira and engaging in specialized financial activities without a valid license, despite not being an authorized dealer in the Nigeria Autonomous Foreign Exchange Market.
- When the charges were read to Chukwubuka Felix Ogumba, director of the two companies, he pleaded guilty on their behalf.
- The EFCC lawyer, Ogechi Ujam, then urged the judge to convict the companies in line with the plea bargain agreement.
- The judge asked Ogumba if he had voluntarily entered into the plea bargain, to which he responded affirmatively.
Ogumba’s lawyer, Chikaoso Ojukwu SAN, confirmed the plea bargain agreement and urged the court to approve it.
Subsequently, Justice AbdulMalik convicted the companies and ordered them to forfeit N25,000,000 each to the Federal Government of Nigeria, which had been recovered by the EFCC during the investigation.
The court also imposed a fine of N500,000 on each company, to be paid to the Federal Government of Nigeria.
The judge further ordered that the convicts, through their Director, must depose to an affidavit of good behaviour before the Court.
Nairametrics reports that these companies are among several firms and individuals indicted by the EFCC for illegally negotiating United States Dollar Tether (USDT) against the Naira with the public, despite not being authorized dealers in the Nigeria Autonomous Foreign Exchange Market.
What you should know
- The verdict highlights the EFCC’s ongoing legal clampdown on Nigerian crypto firms engaged in unlicensed USDT-Naira transactions.
- Nairametrics had previously reported that two Nigerian crypto companies, Paparaxy Global Ventures Limited and Lemskin Technologies Limited, refunded N160,000,000 to the federal government after being indicted for allegedly conducting unauthorized financial activities.
- The case is part of the EFCC’s continuing investigation, which revealed that several bank accounts are linked to individuals allegedly using virtual cryptocurrency exchange platforms to manipulate the value of the Naira and launder proceeds from illegal activities.
