The Economic and Financial Crimes Commission (EFCC) continues its crackdown on unlicensed cryptocurrency trading in Nigeria. The Federal High Court in Abuja has convicted two companies—Egomsinachi Road Autos Limited and Chimera Log & Haulage Services Limited—for conducting unauthorized transactions involving US Dollar Tether (USDT) and the Nigerian Naira without the required banking license.
Background
Several Nigerian crypto companies allegedly involved in illegal financial activities, such as manipulating Naira values and laundering money through unregistered cryptocurrency exchanges, are under investigation by the EFCC. Earlier cases involved Paparaxy Global Ventures Limited and Lemskin Technologies Limited, which refunded N160 million to the government after being charged with unauthorized transactions.
In the latest case, Justice Joyce AbdulMalik presided over the court proceedings, concluding with the conviction of both companies after they entered into a plea bargain with the EFCC.
Court Rulings and Penalties
The EFCC stated that Egomsinachi Road Autos Limited and Chimera Log & Haulage Services Limited had failed to report their transactions to the Special Control Unit on Money Laundering (SCUML), violating the Money Laundering (Prevention and Prohibition) Act of 2022. The companies were accused of trading USDT for Naira and engaging in specialized financial activities without a valid license, despite not being authorized dealers in the Nigeria Autonomous Foreign Exchange Market.
As a result, the court ordered the forfeiture of N50 million—N25 million from each company’s account—to the EFCC recovery account. Additionally, both companies were fined N500,000 each, payable to the Federal Government.
Plea Bargain Process
During the hearing, Chukwubuka Felix Ogumba, director of the two companies, admitted guilt on behalf of the businesses. Justice AbdulMalik questioned Ogumba to ensure he voluntarily agreed to the plea deal, to which he confirmed. The judge then proceeded with the conviction, as recommended by EFCC lawyer Ogechi Ujam.
Ogumba’s defense lawyer, Chikaoso Ojukwu (SAN), also confirmed the plea agreement and urged the court to approve it.
Conditions Imposed by the Court
In addition to the financial penalties, the court required Ogumba to swear an affidavit of good behavior as a condition for the companies moving forward.
Previous Convictions
This case marks the third recent conviction related to illegal crypto trading in Nigeria. On October 31, 2024, Justice Inyang Ekwo of the same court convicted another company, Official Gredo, and ordered it to forfeit N140 million to the Federal Government.
Ongoing EFCC Actions
The EFCC continues to monitor and take action against individuals and companies involved in unauthorized cryptocurrency transactions as part of its broader goal to regulate Nigeria’s crypto space and curb illicit financial activities.
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