FG Sues Four Nigerians Over Illegal USDT Trading, unlicensed cryptocurrency firms
Abuja, (EPICSTORIAN) – The Federal Government of Nigeria has filed a lawsuit against four Nigerians charged with illegal Usdt trading, a digital known as Tether (USDT) which is pegged to US dollar, without obtaining the required banking license.
The digital currency dealers are accused of violating the Central Bank of Nigeria’s regulations, which prohibit unlicensed foreign exchange trading and cryptocurrency transactions.
Suspected offenders against whom lawsuits have been filed include Ejiogu A. Chinedu, Nnamdi F. Okereke, Oty Ugochukwu Stanley, and Chukwuebuka F. Ogumba.
They are charged with illegal trading of Tether (USDT) against the Nigerian Naira without a valid banking license.
Several firms linked to the individuals are also named as co-defendants in the case.
The charges, brought under multiple suit numbers, allege that their actions violate Central Bank of Nigeria regulations on unauthorized cryptocurrency transactions and foreign exchange trading, threatening the country’s financial system.
The government has directed the Federal High Court in Abuja to punish the defendants over the alleged violation of the established regulatory code (Banks and Other Financial Institutions Act of 2020).
Co-defendants firms expected to appear before the court include Plip Global Ventures, Paparaxy Global Ventures, and Egomsinachi Road Autos.
Why the Nigerian government is against Illegal USDT Trading
The government claims that the illegal activities undermine financial stability and breach Nigeria’s financial laws.
Previously, on September 4, 2024, Nairametrics reported that the Economic and Financial Crimes Commission (EFCC) had obtained authorizations from the Federal High Court to freeze N548.6 million linking to the bank accounts of cryptocurrency traders on various unregulated cryto exchanges.
These persons, whose transactions were traced to centralized exchanges such as KuCoin, ByBit, and others, are being held responsible for the forex market fluctuations and Naira instability against the US Dollar.
The case highlights Nigeria’s continued crackdown on unauthorized crypto-related operations within the country.
Past and recent actions taken by the Nigerian government against cryptocurrency use and trading in Nigeria
In 2017, the Central Bank of Nigeria (CBN) issued warnings about the risks of digital currencies, emphasizing their lack of legal backing.
By 2021, the CBN banned financial institutions from facilitating cryptocurrency transactions, citing concerns over money laundering, terrorism financing, and instability in the forex market contributing to continuous loss in the value of Naira against the US dollar.
Since this year 2024, the Nigerian government has ramped up its legal actions against cryptocurrency transactions, continuing its stringent stance on digital currencies, including seeking to jail Binance Founder for allowing Nigerians to trade digital currencies using Naira on his platform.
The News Summaries:
- Nigeria sues four for unlicensed USDT trading, violating financial laws.
- Government crackdown on illegal cryptocurrency trading targets USDT traders.
- Court case highlights Nigeria’s continued fight against unregulated crypto transactions.
- EFCC freezes assets of unlicensed traders involved in illegal USDT activities.
