The Federal High Court in Abuja has convicted Official Gredo Limited, a Nigerian cryptocurrency dealing company, for unlawfully conducting transactions converting USDT to Naira without the necessary banking license.
Justice Inyang Ekwo delivered the verdict on Wednesday, following a plea bargain agreement between Official Gredo and the Economic and Financial Crimes Commission.
The court ordered the forfeiture of N140 million from the company’s account to the EFCC recovery account.
The case, designated as suit no: FHC/ABJ/CR/308/2024, stemmed from a guilty plea by Nnamdi Okereke, the company’s director, who admitted to a revised money laundering charge.
During the court proceedings, the company was accused of failing to report a transfer of N76,462,500 from Renderstack Technologies Ltd to its account at Providus Bank, as mandated by the Money Laundering (Prohibition) Act of 2011.
Nairametrics reported that Official Gredo and Okereke were among several individuals and firms indicted by the EFCC for unauthorized trading of United States Dollar Tether (USDT) against the Naira in the public market, despite lacking authorization as dealers in the Nigeria Autonomous Foreign Exchange Market.
Both the EFCC’s lawyer, Martha Babatunde, and the defendant’s attorney, I.O. Offodili, requested the court to uphold the plea bargain. Under this agreement, Okereke acknowledged the offense and agreed to restitute N140 million, a sum tied to the disputed transaction.
In his ruling, Justice Ekwo confirmed the plea bargain and highlighted that it would not preclude further investigations into other involved parties. He mandated that Okereke remain available to assist the EFCC with ongoing inquiries.
The judge ordered the forfeiture of the N140 million to the Federal Government, specifying that it would be deducted from a related account belonging to another entity, CZMUNCH Fabricators and Wiring Ventures—Chimera Logistics and Haulage Services.
Additionally, the court imposed a fine of N1 million on Official Gredo, payable to the Federal Government within fourteen days. Failure to comply could result in the director’s imprisonment.
This conviction adds to a growing list of legal actions against Nigerian crypto firms for unlicensed transactions. Recently, two other companies, Paparaxy Global Ventures Limited and Lemskin Technologies Limited, were required to refund N160 million to the federal government for similar offenses.
The EFCC’s investigation continues as it looks into numerous accounts linked to alleged cryptocurrency manipulation and laundering activities.
