A Federal High Court in Abuja has approved a freezing order against five bank accounts implicated in the alleged fraudulent diversion of N48 million investment aimed at purchasing a crypto mining rig package in 2023.
Justice Emeka Nwite issued the interim order on November 28, 2024, following a motion ex parte filed by the Economic and Financial Crimes Commission (EFCC).
The case follows a petition signed by Usman Abbas Esq and forwarded to the EFCC.
It states that the suspects, Dimeji Christopher and several others, allegedly “presented a crypto mining investment opportunity to the complainants with promises of mouthwatering returns, which prompted the complainants to invest a total of N48,000,000 through several payments to various bank accounts provided by the suspects.”
According to the EFCC, the suspects subsequently allegedly failed to deliver the promised return on investment or refund the capital investment, hence the petition and ongoing investigation.
A mining rig is a specialized computer system used in mining cryptocurrencies.
EFCC Investigation
- In the motion marked FHC/ABJ/CS/1188/2024, exclusively seen by Nairametrics, EFCC lawyer Sabina M. Dabak Esq told the court that the funds in the five bank accounts, which are the subject of the reliefs sought, are part of an ongoing investigation by the EFCC.
- The lawyer added that the situation involves the alleged obtaining of funds by false pretences and criminal breach of trust.
- The lawyer argued that there is a need to preserve the funds that have been paid into the named accounts, including those of Meta Consultants Limited, pending the conclusion of the investigation.
- In the affidavit accompanying the motion, dated November 27, 2024, Austin Elem, an EFCC operative, stated that the sums received by Dimeji Christopher, the Director of Meta Consultants Limited, from the complainants were intended for the purchase of a mining rig package as per the sales/hosting agreement executed by both parties.
“Investigation so far has revealed that the suspect did not use the funds for the intended purpose but instead disbursed the funds to accomplices and for personal use,” he added.
- The deponent further stated that the investigation had not uncovered any investment in crypto mining or any other business by the suspect on behalf of the petitioner, and the funds in the accounts are suspected to be proceeds of crime.
- The deponent also disclosed that the suspect, who initiated and authorized the transfers to different accounts, has been on the run since the investigation began but was recently arrested by the EFCC’s Kano State Zonal Directorate.
- He submitted that the investigation is ongoing to uncover the full details of the transaction and the persons involved.
What Transpired in Court
At the resumed hearing on November 28, 2024, EFCC lawyer Stanley Obilo Esq urged the court to extend the freezing order granted to the Chairman of the Economic and Financial Crimes Commission or any officer authorized by him, directing the identified banks to stop all outward payments, operations, or transactions (including any bills of exchange) concerning the bank accounts, pending the conclusion of the ongoing investigation and prosecution.
- He requested that the freezing order be extended for another 90 days and to approve the interim order in the interest of justice.
- In response, Justice Nwite stated that after reviewing the EFCC’s motion and affidavits, “the application is meritorious.”
- He granted the EFCC’s request, except that the new interim order will last for 60 days.
“Case adjourned to January 29, 2025, for a report,” Nwite ruled.
What You Should Know: When a freezing order is made by a trial court, the banks are required to comply by blocking transactions in the affected accounts.
However, since the trial court’s order is interim, the affected parties are entitled to approach the court to have it set aside, or the order may expire if the anti-graft agency’s request for renewal is not granted.