According to ChainCatcher, the Nigerian government has collected nearly $100,000 (about 160 million naira) from two cryptocurrency companies suspected of unauthorized exchange of USDT and Naira. The two companies, Paparaxy Global Ventures Limited and Lemskin Technologies Limited, were accused of violating the law for not holding a valid banking license.

According to Nairametrics, the two companies entered into a plea agreement with the Nigerian Economic and Financial Crimes Commission (EFCC) and the case was heard on October 22. The EFCC stated that Paparaxy and Lemskin were not authorized to participate in the Nigerian autonomous foreign exchange market and failed to report the relevant transactions to the Special Control Unit.

In addition, Nigerian authorities are freezing bank accounts associated with unlicensed crypto traders in an effort to strengthen regulation. Despite the welcome announcement of new digital asset exchange licenses, regulators have stressed that they will crack down on illegal cryptocurrency platforms.