Nigeria’s Economic and Financial Crimes Commission (EFCC) has secured a conviction against local cryptocurrency company, Plip Global Ventures, for unlawfully conducting USDT-to-Naira transactions without obtaining a banking license.
According to local reports, the conviction was handed down by the Federal High Court, Abuja, after Plip Global Ventures pleaded guilty to the charges, forfeiting N25 million (~$15,000) to the federal government.
During its arraignment on August 18 2024, the company faced charges for failing to report a single transfer of ₦100 million (~$60,000) into its account to the Special Control Unit against Money Laundering (SCUML) of the EFCC, as mandated by Section 11 (1)(b) of the Money Laundering (Prevention and Prohibition) Act, 2022.
Plip Global Ventures was accused of exchanging United States Dollar Tether (USDT) for Naira and carrying out specialized financial operations without a valid license, despite not being an authorized dealer in the Nigeria Autonomous Foreign Exchange Market.
The company’s director pleaded guilty on behalf of the firm, and consequently, the EFCC asked the judge to convict the company according to a plea bargain agreement, a request that was supported by the firm’s legal team.
The ruling is the latest demonstration of the EFCC’s continued legal efforts to clamp down on Nigerian crypto firms engaging in unlicensed USDT-to-Naira transactions.
🇳🇬REGULATION | Nigerian Crypto Company Fined and Forfeits ~85,000 for Exchanging $USDT/Naira Without License
The judge ruled that if the defendants do not pay within 14 days, the EFCC is to bring the director back for imprisonment.https://t.co/7Sb0N2HB93 $NGN #Nigeria pic.twitter.com/X9Z1WbUVxP
— BitKE (@BitcoinKE) October 25, 2024
In October 2024, two crypto firms, Paparaxy Global Ventures Limited and Lemskin Technologies Limited forfeited N160,000,000 (~$97,500) to the federal government after being convicted for providing USDT to Naira exchanges without valid licenses.
🇳🇬REGULATION | 2 Crypto Firms Forced to Surrender ~$100,000 as #Nigeria Cracks Whip on Unlicensed Operators
The defendants admitted they engaged in negotiating #USDT against the #Naira with the public without being authorized dealers. https://t.co/tawSEcq5Vb @officialEFCC pic.twitter.com/SdO28oxgAB
— BitKE (@BitcoinKE) October 26, 2024
Recall that Nigeria’s Securities Exchange Commission recently began issuing operating licenses to companies dealing in digital assets. The commission chief warned that they will be taking action on entities operating outside of its regulatory purview.
🇳🇬REGULATION | Nigerian Crypto Exchange, Quidax, Receives Provisional Operating License from SEC Nigeria
With the license granted by the Nigerian SEC, Quidax is now able to collaborate with banks and other financial institutions, subject to the Central Bank of Nigeria’s… pic.twitter.com/4gPpLyJi4z
— BitKE (@BitcoinKE) August 29, 2024
“We are certainly going to commence enforcement actions on anyone who wants to operate in this market without the intention of being regulated.
For those that do not want to play by the books, we will not allow them to operate within our space,” Dr. Emomotimi Agama Director-General of SEC Nigeria said at the time.
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