Four Nigerian cryptocurrency dealers and many companies have been charged with felonies by the Federal Government of Nigeria for allegedly conducting business with other financial institutions without a proper banking license, including USDT to Naira trades.
The FG filed lawsuits against the individuals—Ejiogu A. Chinedu, Nnamdi F. Okereke, Oty Ugochukwu Stanley, and Chukwuebuka F. Ogumba—as well as a few companies named as co-defendants in a number of charge sheets and suit numbers that Nairametrics obtained exclusively.
The defendants are accused of breaking the Banks and Other Financial Institutions Act of 2020, and the government is asking the Federal High Court in Abuja to punish them for this.
THE MATRIX had earlier exclusively reported that Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC), on September 4, 2024, secured an order from the Federal High Court to freeze N548.6 million in bank accounts belonging to suspected crypto users on platforms like ByBit, KuCoin, and others, based on their alleged role in naira fluctuations.
Read Also: SEC In Principle, Approves Quidax, Busha As Legalised Crypto Exchanges
EFCC counsel, Ekele Iheanacho, urged the court to freeze the bank accounts listed in its schedule, which belong to various individuals, some of whom are either currently being prosecuted or investigated for unauthorized foreign exchange dealings, money laundering, and terrorism financing, pending the conclusion of the investigation and prosecution.
The development follows intelligence from the National Security Adviser, which alleged money laundering, foreign exchange contraventions, and terrorism financing activities on certain cryptocurrency exchange platforms.
In charges filed between June and July 2024, the defendants were accused of conducting the specialized business of another financial institution without a valid license, thereby committing an offense between 2021 and January 2024.
The prosecution also stated that the defendants, not being authorized dealers in Nigeria’s Autonomous Foreign Exchange Market, allegedly negotiated United States Dollar Tether (USDT) against Naira with the public, thereby committing an offense contrary to and punishable under Section 29(1)(c) of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act.
Read Also: Nigerian SEC Set To Issue Crypto Exchanges Licenses To Promote Industry
The act referred to describes any foreign exchange negotiation not permitted by law as an offense.
USDT refers to Tether, a cryptocurrency pegged to the U.S. dollar.
Some of the firms listed as co-defendants include Egomsinachi Road Autos, Plip Global Ventures, and Paparaxy Global Ventures.
The legal teams of both the prosecution and defendants will now present their arguments in court, eventually paving the way for a judgment.
