The Federal High Court in Abuja has convicted two other Nigerian crypto companies, Egomsinachi Road Autos Limited and Chimera Log & Haulage Services Limited, of illegally conducting USDT to Naira transactions without a banking license.

Justice Joyce AbdulMalik on Thursday sentenced the two companies following a deal with the Economic and Financial Crimes Commission (EFCC).

The court also ordered the forfeiture of N50 million held in the accounts of the companies to the EFCC recovery account.

This marks the third reported conviction by the Federal High Court for illegal cryptocurrency trading.

On 31 October 2024, Nairametrics reported that Justice Inyang Ekwo of the court, in case no: FHC/ABJ/CR/308/2024, convicted official Gredo and ordered the forfeiture of N140,000,000 to the Federal Government.

What happened in court

• At their hearing on Thursday, the companies were accused of failing to report any of their transactions to the EFCC’s Special Monitoring Unit on Money Laundering (SCUML), contrary to Section 11(3) of the Money Laundering (Prevention and Prohibition) Act, 2022 .
• They were accused of trading US Dollar Tether (USDT) with Naira and engaging in specialized financial activities without a valid license despite not being an authorized dealer in Nigeria’s autonomous foreign exchange market.
• When the charges were read to Chukwubuka Felix Ogumba, the director of the two companies, he pleaded guilty on their behalf.
• EFCC counsel, Ogechi Ujam, then urged the judge to sentence the companies in line with the plea agreement.
• The judge asked Ogumba if he voluntarily entered into the plea agreement, to which he replied in the affirmative.

Ogumba’s lawyer, Chikaoso Ojukwu SAN, confirmed the plea agreement and urged the court to approve it.

Justice AbdulMalik later convicted the companies and ordered them to forfeit £25,000,000 each to the Federal Government of Nigeria, which were recovered by the EFCC during the investigation.

The court also fined each company N500,000 to be paid to the Federal Government of Nigeria.

Next, the judge ordered that the convicts, through their director, submit to a sworn statement of good behavior before the Court.

Nairametrics reports that these companies are among several firms and individuals indicted by the EFCC for illegally trading US Dollar Tether (USDT) against the Naira to the public despite not being authorized dealers in Nigeria’s autonomous foreign exchange market.

What you should know

• The verdict highlights EFCC’s ongoing legal clampdown on Nigerian crypto firms involved in unlicensed USDT-Naira transactions.
• Nairametrics had earlier reported that two Nigerian crypto companies, Paparaxy Global Ventures Limited and Lemskin Technologies Limited, have returned N160,000,000 to the Federal Government after they were indicted for engaging in unauthorized financial activities.
• The case is part of the ongoing investigation by the EFCC which revealed that several bank accounts are linked to individuals who are alleged to be using virtual cryptocurrency exchange platforms to manipulate the value of the Naira and launder the proceeds of illegal activities.

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