Nigerian Court fines two crypto firms over illegal USDT to naira transaction

Nigerian authorities fined two crypto firms $30,000 for trading USDT to naira without a license.

According to local Nigerian media outlet Nairametrics, the Federal High Court in Abuja found two crypto companies, Egomsinachi Road Autos Limited and Chimera Log & Haulage Services Limited, guilty of executing unlicensed Tether (USDT) into naira.

Judge Joyce AbdulMalik ordered the two firms to pay a fine of NGN 50 million, equivalent to $30,000, following a plea agreement facilitated by the Economic and Financial Crimes Commission.

The court also imposed an additional fine of NGN 500,000 ($897) on each company, payable to the Federal Government of Nigeria.

This marks the third case in which the Federal High Court in Nigeria has convicted companies for illegal crypto trading. Crypto firm Official Gredo was previously convicted for unlicensed crypto activities and ordered to forfeit NGN 140 million to the government.

The report stated that both companies were charged with failing to report their transactions to the EFCC’s Special Money Laundering Control Unit under Section 11(3) of the Money Laundering (Prevention and Prohibition) Act, 2022.

The two firms were found to be trading USDT to naira without a license, which violated the country’s financial regulations.

Additionally, the firms were accused of operating in the specialized financial sector without appropriate permits as they were not licensed dealers in the Nigerian Autonomous Foreign Exchange Market.

The director of the two companies, Chukwubuka Felix Ogumba, admitted the charges. Thereafter, EFCC lawyer Ogechi Ujam requested the judge to sentence the companies according to the plea bargain agreement.

Ogumba’s lawyer, Chikaoso Ojukwu SAN, confirmed the plea bargain agreement and urged the court to confirm it. The judge also directed Ogumba to submit a statement of good conduct to the court.

Previously, two other Nigerian crypto firms, Paparaxy Global Ventures Limited and Lemskin Technologies Limited, were ordered to pay NGN 160 million ($95,661) to the federal government after they were accused of engaging in unauthorized transactions.