Court freezes N178.7 million in 8 banks after banker allegedly diverts customers’ money meant for USDT purchase

The Federal High Court in Abuja has frozen approximately N178,750,000 held in eight Nigerian banks, due to alleged fraudulent practices by a suspect resulting in a failed USDT transaction.

The order was made against Teehbiz Logistics, Ibisi Anthony Emeka, Ibisi Anthony, Stephixx Nigeria Limited, and Teehbiz Global Services Limited, following a request by the Economic and Financial Crimes Commission (EFCC) Chairman, as seen exclusively in its motion ex parte (filed on August 19, 2024), marked FHC/ABJ/CS/1204/2024.

The motion ex parte (filed by Barrister Stanley O. Obila) is an application where a party seeks a court order against others without notifying the latter in advance.

EFCC’s Allegations Against the Suspect
According to the EFCC’s affidavit in support, deposed by Halima Bello, an investigator attached to the Procurement Fraud Section of the Economic and Financial Crimes Commission, the commission received a petition on January 17, 2024, submitted by Patloma Partners on behalf of Mr. Anikwe Ifeanyi against one Anthony Emeka Ibisi, alleging fraud involving N178,750,000.00.

The petition alleges that in September 2023, the suspect, Ibisi, approached the petitioner and presented himself as an employee of Guaranty Trust Bank PLC with the ability to help process foreign currency amounting to N178,750,000.00 through the official window of the bank for the petitioner’s partners outside Nigeria.

Mr. Anikwe Ifeanyi, a businessman working with Phlex Solutions Ltd, was said to have paid N178,750,000.00 in various tranches to the suspect’s company accounts in the identified banks.

“Upon receiving the money, the suspect failed to transfer the USDT equivalent to the petitioner’s partners outside Nigeria as agreed, which negatively impacted the petitioner’s business.

“All efforts to contact the suspect to either make refunds or deliver the agreed dollar equivalent failed, as the suspect became evasive,” the EFCC investigator added.

USDT is a symbol for Tether, a cryptocurrency pegged to the U.S. dollar.

The EFCC further noted that upon preliminary investigation into the suspect’s statement of account, it was found that the suspect transferred various amounts of money into certain bank accounts allegedly linked to him.

The official stated that the preliminary investigation is ongoing, and there is a need to preserve the funds in the accounts listed to prevent their dissipation.

The Commission argued that if the funds are dissipated, it would render any subsequent court order useless if the suspect is eventually found guilty and convicted after prosecution.

“It is in the interest of justice to grant the freezing order to preserve the said money, stem the trend of fraudulent practices in our society, and deny the suspect the opportunity to enjoy proceeds suspected to be from unlawful activity,” the motion added.

What Transpired in Court
At the resumed hearing on Monday, August 26, 2024, EFCC counsel Barrister Muazu B. Bayara urged the court to authorize the EFCC or an authorized officer of the Commission to direct the Managing Directors of the identified banks to freeze the accounts as per the affidavit.

He stressed that the court action is part of an investigation into criminal breach of trust and obtaining by false pretenses, and should remain in effect until the investigation is complete.

Ruling on the motion, Justice Emeka Nwite granted the EFCC application, finding it meritorious. However, he added that the order shall elapse after a period of 90 days.

The court subsequently adjourned the case to November 26, 2024, for a report on the EFCC’s conclusion of the investigation.

What This Means
Tether USDT is a popular payment method among Nigerian remote workers and freelancers working for foreign firms.

The court has temporarily frozen some bank accounts due to EFCC allegations of fraud related to failed USDT transactions.

It is expected that those involved may file their respective processes for or against the freezing order .