In a landmark ruling, the Federal High Court in Abuja has convicted Official Gredo Limited, a Nigerian crypto trading firm, for engaging in illegal cryptocurrency transactions without proper authorization. The case revolves around the firm’s unlicensed exchange of USDT (Tether) against the Naira, in violation of Nigerian financial regulations.
Background of the Case
The court’s decision follows a plea bargain agreement reached between the Economic and Financial Crimes Commission (EFCC) and Nnamdi Okereke, the director of Official Gredo Limited. The company was accused of conducting USDT-Naira trades without being a licensed operator in the Nigeria Autonomous Foreign Exchange Market. Official Gredo failed to report a transaction amounting to N76,462,500, which was transferred into its Providus Bank account by Renderstack Technologies Ltd, breaching the provisions of the Money Laundering (Prohibition) Act, 2011.
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Guilty Plea and Forfeiture of N140 Million
During the arraignment, Okereke pleaded guilty to a money laundering charge brought against him, leading the court to convict the company. As part of the plea bargain, Official Gredo forfeited N140 million held in its account to the Federal Government. This sum was transferred from a bank account associated with another company linked to the case, CZMUNCH Fabricators and Wiring Ventures.
Justice Inyang Ekwo, who presided over the case, emphasized that the plea deal does not preclude further investigations into other individuals or companies involved. The judge also imposed a N1 million fine on Official Gredo, to be paid within fourteen days or risk having its director sent to prison.
A Broader Crackdown on Illegal Crypto Trading
This conviction is the latest in a series of actions by the EFCC targeting illegal cryptocurrency activities in Nigeria. Earlier in 2024, two other crypto firms, Paparaxy Global Ventures Limited and Lemskin Technologies Limited, were also penalized for operating without proper financial institution licenses. Both companies refunded a combined N160 million to the federal government after similar charges were brought against them for their involvement in Naira manipulation and money laundering through cryptocurrency platforms.
The Growing Challenge of Cryptocurrency Regulation in Nigeria
Nigeria remains one of the largest crypto markets in Africa, but the regulatory environment is tightening as authorities crack down on unauthorized digital asset transactions. The EFCC’s ongoing investigations have uncovered multiple cases where individuals and firms have used virtual currency exchanges to manipulate the value of the Naira and launder proceeds from illegal activities.
With this latest conviction, the Nigerian government is sending a strong message that crypto firms must adhere to established financial regulations or face severe consequences.