BREAKING: Nigerian court convicts crypto firm for unlicensed USDT-Naira trading

BREAKING: Nigerian court convicts crypto firm for unlicensed USDT-Naira trading

A Federal High Court in Abuja has convicted a Nigerian crypto dealing company, Official Gredo Limited, for illegally conducting USDT to Naira transactions without a banking licence.

Justice Inyang Ekwo convicted Official Gredo on Wednesday in accordance with the company’s plea bargain arrangement with the Economic and Financial Crimes Commission (EFCC).

The court ordered the forfeiture of N140 million held in the company’s account to the EFCC recovery account.

The sentencing in suit no: FHC/ABJ/CR/308/2024 followed a guilty plea by Nnamdi Okereke, the company’s director, when the amended money laundering charge was read to him.

At the arraignment on Wednesday, the company was accused of failing to report in writing to the Nigerian Financial Intelligence Unit (NFIU) a single transfer of N76,462,500.00 paid from Renderstack Technologies Ltd into the Providus Bank Ltd account No. 5400608751 operated by Official Gredo, as specified under section 10(1)(b) of the Money Laundering (Prohibition) Act, 2011.

The company and Okereke among several firms and individuals were indicted by the EFCC for negotiating United States Dollar Tether (USDT) against the Naira with the public, despite not being an authorized dealer in the Nigeria Autonomous Foreign Exchange Market.

Okereke pleaded guilty to the one-count charge.

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Subsequently, EFCC lawyer Martha Babatunde, Esq., and the defendant’s counsel, I.O. Offodili, urged the court to affirm the contents of the plea bargain as agreed by the parties.

According to the plea bargain, the defendant admitted committing the offenve and has restituted N140,000,000 to the EFCC, being part of the amount associated with the disputed transaction.

Passing his ruling, Ekwo convicted the company and affirmed the plea bargain agreement.

The judge stated that the plea bargain agreement between the complainant and the defendant should not prevent further investigations from being carried out on other persons or companies with respect to the case.

“The Defendant shall forfeit the sum of N140,000,000 recovered by the Economic and Financial Crimes Commission in the course of the investigation to the Federal Government of Nigeria.

“The sum of N140,000,000 being the amount restituted by the Defendant shall be deducted from the account of CZMUNCH FABRICATORS AND WIRING VENTURES—CHIMERA LOGISTICS AND HAULAGE SERVICES, with account number 5435830566 domiciled in Moniepoint Microfinance Bank, which will be transferred to the EFCC Recovery Account,” Ekwo said.

The judge subsequently sentenced the company to a fine of N1 million, which would be paid to the Federal Government of Nigeria.

Ekwo held that the defendants should pay the amounts within 14 days or the EFCC should bring the director back to be sent to prison.

BREAKING: Nigerian court convicts crypto firm for unlicensed USDT-Naira trading