Crypto firms refund ₦160 million to FG after indictment for unlicensed USDT-Naira trading. These Nigerian cryptocurrency firms are Paparaxy Global Ventures Limited and Lemskin Technologies Limited, they were charged for conducting financial services without proper licensing.
The companies were accused of engaging in unauthorised USDT-Naira transactions and unlicensed financial operations.
This development was revealed through a plea bargain agreement reached between the companies and the Economic and Financial Crimes Commission (EFCC), reports Nairametrics.
Per the plea bargains, Paparaxy has refunded ₦140 million to the FG, while Lemskin returned ₦20 million. As part of the plea bargain deal, the directors of the two companies shall swear an affidavit of good behaviour before the Court.
The agreement was presented in court by the EFCC on Monday, October 14, 2024, before Justice James Omotosho of the Federal High Court in Abuja.
At the court hearing, the EFCC’s lawyer, Ogechi Ujam, announced that the two companies had proposed a settlement and entered a plea bargain, requesting a short date to adopt the plea bargain agreement.
Read Also: Telecoming Partners with The Movement Empire Bring Fitness to South Africans
Justice Omotosho adjourned the matter to October 22, 2024, for the formal adoption of the agreement.
Operating without valid banking licenses
Paparaxy Global Ventures Limited and Lemskin Technologies Limited were among the firms sued by the federal government for engaging in financial transactions without valid banking licenses.
The lawsuit, filed in June and July 2024, accused the companies of conducting unauthorised USDT-Naira conversions between 2021 and January 2024, in violation of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act.
The plea bargain arrangement allows the accused parties to admit guilt in exchange for a reduced sentence or penalty. In this case, the two companies agreed to refund ₦160 million to the federal government as part of the deal.
The case is part of a broader crackdown on unlicensed cryptocurrency trading in Nigeria.
In September 2024, the EFCC secured a court order to freeze ₦548.6 million held in accounts of individuals and businesses suspected of engaging in unauthorised foreign exchange transactions on platforms such as ByBit and KuCoin. These platforms were linked to alleged Naira fluctuations and money laundering activities.
As investigations into cryptocurrency-related financial crimes continue, several individuals involved in unauthorised foreign exchange dealings, including money laundering and terrorism financing, are prosecuted or under investigation.
The plea bargains signal the government’s intent to recover funds and tighten its regulatory framework in the fast-evolving digital currency space.
Leave a comment and follow us on social media for more tips:
- Facebook: Today Africa
- Instagram: Today Africa
- Twitter: Today Africa
- LinkedIn: Today Africa
- YouTube: Today Africa Studio
