The Nigerian Federal Government has successfully retrieved a total of ₦160 million from two domestic cryptocurrency enterprises, namely Paparaxy Global Ventures Limited and Lemskin Technologies Limited, following charges that they operated financial services without the requisite authorization. The allegations against these companies included the execution of transactions involving the exchange of USDT (Tether) for Naira without the necessary licenses, as well as other financial activities that were not sanctioned by regulatory authorities.
This information came to light as a result of a plea bargain agreement that was reached between the implicated companies and the Economic and Financial Crimes Commission (EFCC), as reported by Nairametrics. According to the terms of the plea agreements, Paparaxy Global Ventures Limited has reimbursed the Federal Government with ₦140 million, while Lemskin Technologies Limited has returned ₦20 million. Additionally, as a condition of the plea bargain, the directors of both companies are required to submit a sworn affidavit pledging to maintain good conduct to the Court.
The plea bargain was formally introduced in court by the EFCC on Monday, October 14, 2024, in front of Justice James Omotosho at the Federal High Court located in Abuja. During the court session, the legal representative for the EFCC, Ogechi Ujam, made it known that the two companies had offered to settle the matter and had entered into a plea bargain. A request was made for a brief postponement in order to finalize the adoption of the plea bargain agreement. Justice Omotosho decided to defer the proceedings until October 22, 2024, when the plea bargain agreement would be officially adopted.
Paparaxy Global Ventures Limited and Lemskin Technologies Limited were among several entities that the federal government had taken legal action against for carrying out financial transactions without valid banking licenses. The legal complaints, which were filed in June and July of 2024, charged the companies with performing unauthorized exchanges of USDT for Naira from 2021 through January 2024, which was in contravention of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act.
The plea bargain is a legal mechanism that permits the accused to acknowledge their guilt in return for a more lenient sentence or penalty. In the current scenario, the two companies consented to repay ₦160 million to the federal government as a component of the agreement.
This case is indicative of a larger initiative to regulate unsanctioned cryptocurrency trading within Nigeria. In September 2024, the EFCC obtained a judicial order to seize ₦548.6 million from accounts belonging to individuals and companies suspected of conducting unauthorized foreign exchange transactions on platforms such as ByBit and KuCoin. These platforms were implicated in alleged destabilization of the Naira and money laundering activities.
As the investigations into cryptocurrency-related financial offenses proceed, numerous individuals implicated in illegal foreign exchange transactions, including those related to money laundering and financing of terrorism, are either facing prosecution or are under scrutiny. The plea bargains are a clear indication of the government’s determination to reclaim misappropriated funds and to strengthen the regulatory framework surrounding the burgeoning digital currency market.
