Federal High Court orders N50m forfeiture from two crypto companies in EFCC crackdown

By Blessing Omale
The Federal High Court in Abuja has ordered the forfeiture of N50 million from two Nigerian companies, Egomsinachi Road Autos Limited and Chimera Log & Haulage Services Limited, following their conviction for conducting unauthorized USDT-to-Naira transactions.
The judgment, delivered by Justice Joyce AbdulMalik on Thursday, is part of the Economic and Financial Crimes Commission’s (EFCC) ongoing crackdown on illegal crypto trading outfits in Nigeria.
As part of the court’s order, N50 million held in the companies’ accounts will be forfeited to the EFCC recovery account.
This conviction is the third reported case in which the Federal High Court has penalized companies involved in unlicensed cryptocurrency trading.
Just last week, Justice Inyang Ekwo of the same court convicted another company, Official Gredo, in suit no: FHC/ABJ/CR/308/2024, ordering the forfeiture of N140 million to the Federal Government.
During the arraignment of Egomsinachi Road Autos Limited and Chimera Log & Haulage Services Limited, the EFCC charged them with failing to report their transactions to the Special Control Unit on Money Laundering (SCUML) as required by Section 11(3) of the Money Laundering (Prevention & Prohibition) Act, 2022.
Both firms were accused of conducting USDT-to-Naira trading and engaging in specialized financial activities without the necessary license, despite not being authorized dealers within the Nigeria Autonomous Foreign Exchange Market.
Chukwubuka Felix Ogumba, the director of both companies, pleaded guilty on their behalf.
In response, EFCC counsel Ogechi Ujam requested that the court convict the firms in accordance with the plea bargain arrangement.
Justice AbdulMalik confirmed that Ogumba entered into the plea deal voluntarily, after which Ogumba’s lawyer, Chikaoso Ojukwu SAN, urged the court to approve the agreement.
Following this confirmation, Justice AbdulMalik ordered each company to forfeit N25 million to the Federal Government of Nigeria, a sum that the EFCC recovered during its investigation.
Additionally, a fine of N500,000 was imposed on each firm, with an order for Ogumba to submit an affidavit of good behavior.
The companies are among several identified by the EFCC as illegally negotiating USDT-to-Naira exchanges, engaging in unregulated financial activities that impact the Nigerian market.
The EFCC’s ongoing investigations reveal that certain bank accounts are linked to individuals allegedly using cryptocurrency platforms to manipulate the value of the Naira and launder illicit funds.
Earlier in the year, two other crypto companies, Paparaxy Global Ventures Limited and Lemskin Technologies Limited, refunded a total of N160 million to the federal government after being accused of unauthorized financial activities.