BREAKING: FG receives N160 million refund from two firms indicted for ‘unlicensed’ USDT-Naira trading 

This is contained in a plea bargain agreement the companies entered with the Economic and Financial Crimes Commission (EFCC), exclusively seen by Naijaonpoint, from sources familiar with developments on the matter.

The plea bargain deals were also announced before Justice James Omotosho of the Federal High Court in Abuja on Monday, October 14, 2024, by the EFCC lawyer, Ogechi Ujam.

Naijaonpoint had earlier reported that Nigeria’s anti-graft agency, the 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.

At the resumed sitting on Monday before Justice Omotosho, the EFCC’s separate case against Oty Stanley and Paparaxy Global Ventures Limited (first and second defendant), as well as Chinedu and Lemskin Technologies (first and second defendant), was announced, and the two individuals stepped into the dock when called.

EFCC counsel Ujam then informed the court that the company had proposed a settlement and that a plea bargain agreement had been formalized.

She requested a short date for the adoption of the plea bargain agreement.

“This matter is adjourned to October 22, 2024, for the adoption of the plea bargain agreement,” Justice Omotosho ruled in the two cases.

According to the plea bargains exclusively seen by Naijaonpoint, Paparaxy has restituted N140 million to the FG, while Lemskin refunded N20 million.

The defendants admitted that, not being authorized dealers in the Nigeria Autonomous Foreign Exchange Market, they negotiated United States Dollar Tether (USDT) against the Naira with the public and conducted specialized business of other financial institutions without a valid license.

The defendants acknowledged failing to report a single transfer to the Special Control Unit on Money Laundering (SCUML), contrary to Section 10(3) of the Money Laundering (Prohibition) Act, 2011.

The defendants restituted the amounts, agreeing that it is part of the benefit they derived from committing the offenses.

Part of the plea bargain deal includes that the directors of the two companies shall depose to an affidavit of good behavior before the Court.

Naijaonpoint gathered that an amended charge has been instituted against the two companies alone, which will be read on the next adjourned date, paving the way for a verdict on the two businesses by the court.

This development follows intelligence from the National Security Adviser, which alleged money laundering, foreign exchange contraventions, and terrorism financing activities on certain cryptocurrency exchange platforms.

The Federal High court had approved an order freezing 1,146 accounts for 90 days (from April 25, 2024, to July 23, 2024) over illegal financial transactions.

The Federal High court had approved an order freezing 1,146 accounts for 90 days (from April 25, 2024, to July 23, 2024) over illegal financial transactions.

Before obtaining the freezing order, EFCC counsel Ekele Iheanacho SAN urged Justice Emeka Nwite of the FHC 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 individuals—Ejiogu A. Chinedu, Nnamdi F. Okereke, Oty Ugochukwu Stanley, and Chukwuebuka F. Ogumba—along with some firms listed as their co-defendants, were sued by the FG in various charge sheets and suit numbers exclusively seen by Naijaonpoint, allowing the defendants’ legal team to contest the allegations in different courts.

Naijaonpoint gathered that Nnamdi have also entered plea bargain with the EFCC.

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 offenses between 2021 and January 2024.

The Foreign Exchange (Monitoring and Miscellaneous Provisions) Act defines any foreign exchange negotiation not permitted by law as an offense.

A plea bargain is allowed in law for  exploration by a party

It allows an accused person to admit being guilty to a crime in exchange to a lesser conviction.