The Federal High Court in Abuja has handed down a landmark judgment against Nigerian cryptocurrency firm Official Gredo Limited and its director, Nnamdi Francis Okereke, for conducting illegal USDT-to-Naira transactions without the required licensing. The court found the company guilty of violating the Banks and Other Financial Institutions Act (BOFIA) by operating as a financial institution without approval from the Central Bank of Nigeria (CBN). This violation involved facilitating cryptocurrency trades between Tether (USDT) and the Nigerian naira, an area that remains heavily regulated in Nigeria.
As a consequence of this violation, the court has ordered the forfeiture of N140 million held in the company’s account to the Economic and Financial Crimes Commission (EFCC). The forfeiture is part of the government’s broader efforts to clamp down on illegal cryptocurrency transactions, safeguard the Nigerian financial system, and stabilize the naira. The case underscores the Nigerian government’s continued push for strict compliance with financial regulations, especially in the rapidly evolving crypto space.
This conviction comes amid growing scrutiny of cryptocurrency operations in Nigeria, with the EFCC actively pursuing companies involved in illegal financial transactions, especially those that operate without licenses. The ruling sets a significant precedent as the Nigerian government seeks to balance innovation in the financial technology sector with regulatory oversight aimed at curbing money laundering and unauthorized forex activities.
