Lagos Court Sentences Chinese Executives to Prison for Crypto Fraud Worth N3.4bn and $2.5m

Justice Daniel Osiagor of the Federal High Court in Lagos delivered a verdict on Wednesday, convicting and sentencing two Chinese nationals and directors of Genting International Co. Limited, Huang Haoyu, also recognized as Ken, and An Hongxu, to a combined 46 years in prison each, or an alternative of a N56 million fine, following their involvement in a vast cybercrime and money laundering scheme.

The court mandated that the convicts perform three days of community service and specified that they must be repatriated to their country after completing their sentences and community service.

Both individuals were arrested as part of a larger operation targeting 792 suspected internet and cryptocurrency fraudsters, apprehended by the Economic and Financial Crimes Commission (EFCC) in Lagos in December 2024.

Meanwhile, the second defendant, Audu Friday, pleaded not guilty to the charges and is set for a trial.

During a continuation of the trial, the representative for the first and second defendants, Mis Bridget Omateno, informed the court that both directors decided to plead guilty. This change came after the last session when the counsel appointed had been debriefed.

Although there was no plea bargain arrangement, the first and third defendants sought to switch their pleas and requested the court to restate the charges.

Upon the charges being reiterated by the registrar, Huang Haoyu and An Hongxu admitted guilt to the seven-count charges, while Audu Friday upheld his not guilty status.

Prosecutor Bilkisu Buhari-Bala urged the court to sentence the two men due to their admissions, mentioning that the prosecution had previously presented two witnesses ahead of the plea change. She noted that the first two counts carry life imprisonment, while the subsequent two have a penalty of 14 years' imprisonment.

“I respectfully request your lordship to impose the highest possible sentence on the convicts to deter others,” she asserted.

Additionally, she requested the court to order the forfeiture of all items recovered during the investigation, including valuable assets located on Oyin Jolayemi Street and Bishop Oluwole Street in Victoria Island, and any investments traced back to the first and third defendants, to the Federal Government.

In giving his judgment, Justice Osiagor sentenced Huang Haoyu and An Hongxu to 46 years in prison each, with the option of a N56 million fine.

The court also ordered them to serve three days of community service and undergo repatriation upon serving their sentences and completing this service.

Prosecution against Audu Friday remains pending as he continues to assert his innocence.

Beyond the sentencing of the two convicted individuals, the court instructed the forfeiture of extensive assets sourced from numerous locations within Victoria Island and Ikoyi to the Federal Government.

The seized items encompass 1,596 mobile phones, 2,120 office chairs, 544 office tables, 194 routers, 43 computer systems, a network server, 126 air- conditioning units, several generators and vehicles, hundreds of mattresses and bunk beds, thousands of SIM cards across multiple networks, and a plethora of other electronic devices and household items retrieved from premises located at No. 7 Oyin Jolayemi Street, Victoria Island; Plot 1220 Bishop Oluwole Street, Victoria Island; 54A A.J. Marinho Drive, Victoria Island; and No. 14A Modupe Alakija Crescent, Ikoyi.

The charges against the defendants include conspiring in 2024 to unlawfully access organized computer systems aimed at significantly disrupting the economic and social framework of Nigeria by employing Nigerians to falsely pose as foreign nationals for financial benefits, which violates the Cybercrimes (Prohibition, Prevention, Etc.) Act, 2015, as amended in 2024.

They were also accused of securing individuals to retain $1,262,000 USDT in a Binance wallet and $1,300,203 USDT in a Bybit wallet, amounts suspected to be proceeds from illicit activities, in contravention of the Money Laundering (Prevention and Prohibition) Act, 2022.

Moreover, the charges claim that between August and December 2024, they retained N3,407,824,740.78 in Genting International Co. Limited's Union Bank account, which is believed to be funds originating from fraudulent activities.

The defendants are also alleged to have transferred N913,922,740.29 to an account owned by Duliang Pan, who is currently not in custody, and N106,950,000 to Lagos Oriental Hotel Limited.

Separate allegations against Audu Friday and the company contend unlawful foreign exchange dealings amounting to billions of naira, breaching the Foreign Exchange Monitoring and Miscellaneous (Provisions) Act, and failing to submit necessary declarations to the Special Control Unit Against Money Laundering (SCUML.