Nigerian Court Fines Two Crypto Firms Over Illegal USDT To Naira Transaction

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

According to local Nigerian media outlet Nairametrics, the Federal High Court in Abuja convicted two crypto companies, Egomsinachi Road Autos Limited and Chimera Log & Haulage Services Limited, for carrying out unlicensed Tether (USDT) to naira transactions.

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

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

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

The report noted that both companies were charged with failing to report any of their transactions to the Special Control Unit on Money Laundering of the EFCC, as stipulated under Section 11(3) of the Money Laundering (Prevention & Prohibition) Act, 2022.

The two firms were found to have engaged in unlicensed USDT to naira trading, a violation of the country’s financial regulations.

Additionally, the firms were accused of operating in the specialized financial sector without the proper authorization, as they were not licensed dealers in the Nigeria Autonomous Foreign Exchange Market.

Chukwubuka Felix Ogumba, director of the two companies, pleaded guilty to the charges. Following this, EFCC attorney Ogechi Ujam requested the judge to convict the companies according to the plea bargain settlement.

Ogumba’s lawyer, Chikaoso Ojukwu SAN, confirmed the plea bargain agreement and urged the court to approve it. The judge also ordered Ogumba to submit an affidavit of good behavior to the court.

Previously, two other Nigerian crypto firms, Paparaxy Global Ventures Limited and Lemskin Technologies Limited, were ordered to pay 160 million NGN ($95,661) to the federal government after being indicted for conducting unauthorized transactions.