Nigerian crypto firm convicted for illegal USDT-Naira transactions, forfeits N140m
The Federal High Court in Abuja has convicted Official Gredo Limited, a Nigerian cryptocurrency trading company, of illegally converting USDT to Naira without the required banking license.Justice Inyang Ekwo issued the verdict on Wednesday, following a plea deal between Official Gredo and the Economic and Financial Crimes Commission.
The court ordered that N140 million be forfeited from the company's account and sent to the EFCC recovery account.
The lawsuit, suit number. FHC/ABJ/CR/308/2024, arose from a guilty plea by the company's director, Nnamdi Okereke, who acknowledged to a revised money laundering accusation.
During the court hearings, the firm was accused of failing to record a transfer of N76,462,500 from Renderstack Technologies Ltd to its Providus Bank account, as required by the Money Laundering (Prohibition) Act of 2011.
According to Nairametrics, Official Gredo and Okereke were among several individuals and firms indicted by the EFCC for engaging in unauthorized trading of United States Dollar Tether (USDT) against the Naira in the public market despite not being authorized as dealers in the Nigeria Autonomous Foreign Exchange Market.
Both the EFCC's counsel, Martha Babatunde, and the defendant's attorney, I.O. Offodili, asked the court to uphold the plea bargain. Under the terms of the deal, Okereke admitted to the violation and agreed to pay N140 million in restitution for the disputed transaction.
In his verdict, Justice Ekwo confirmed the plea bargain and stated that it would not impede additional investigations into other persons implicated. He directed that Okereke stay available to help the EFCC with continuing inquiries.
The judge ruled that the N140 million be forfeited to the Federal Government, with the funds withdrawn from a linked account held by another firm, CZMUNCH Fabricators and Wiring Ventures—Chimera Logistics and Haulage Services.
Additionally, the court ordered a punishment of N1 million on Official Gredo, which must be paid to the Federal Government within fourteen days. Failure to comply could lead to the director's imprisonment.
This conviction joins a growing list of legal cases against Nigerian cryptocurrency firms for unlawful transactions. Two other companies, Paparaxy Global Ventures Limited and Lemskin Technologies Limited, were recently ordered to refund N160 million to the federal government for similar infractions.
The EFCC's probe is ongoing, as it looks into a number of accounts tied to potential cryptocurrency manipulation and laundering activities.
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