A Federal High Court in Abuja has fined two Nigerian crypto firms, Egomsinachi Road Autos Limited and Chimera Log & Haulage Services Limited, $30,000 (N50 million) for conducting unlicensed transactions involving Tether (USDT) and the Nigerian naira.
The ruling follows a plea agreement facilitated by the Economic and Financial Crimes Commission (EFCC).
Justice Joyce Abdulmalik also imposed an additional fine of N500,000 ($897) on each company, payable to the Nigerian government.
The court’s decision marks the third such conviction for unlicensed crypto trading in Nigeria, reinforcing the country’s stringent stance on illegal crypto activities.
Both firms were charged with violating Nigeria’s Money Laundering (Prevention & Prohibition) Act, 2022, by failing to report their transactions to the EFCC’s Special Control Unit on Money Laundering.
The firms were found to be engaging in unauthorized USDT-to-naira trades without the necessary licenses from the Nigeria Autonomous Foreign Exchange Market.
Chukwubuka Felix Ogumba, the director of the two companies, pleaded guilty to the charges. Following this, EFCC attorney Ogechi Ujam requested a conviction based on the agreed plea bargain.
The case is part of efforts by Nigerian authorities to regulate cryptocurrency operations, which has seen other firms, like Official Gredo, Paparaxy Global Ventures Limited, and Lemskin Technologies Limited, face significant penalties for similar offenses.
Meanwhile, a new study from the University of Surrey, in partnership with the EFCC, has revealed significant insights into cryptocurrency fraud trends in Nigeria.
According to the study, young Nigerian men are predominantly involved in these high-stakes crimes, with 100% of convicted cryptocurrency fraudsters being male and nearly two-thirds under 30.
The study also found that a substantial portion of their targets are American, with 55% of fraud cases focusing on U.S. victims.
