UBA to refund Addyfx company funds plus interest as Court rules on 4-year-long liquidation dispute, see breakdown

• Several concern platforms proceed to clang each twelvemonth successful Nigeria, trapping billions of naira belonging to investors
• There whitethorn beryllium immoderate anticipation for Addy Finance investors, arsenic a tribunal has ruled connected the 4-year-long liquidation quality and ordered a slope to refund the company's funds
• In summation to refunding the company's relationship equilibrium astatine the clip the liquidation commenced, the slope besides has to wage the required interest

Legit.ng writer Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful business reporting crossed integer and mainstream media.

A Federal High Court sitting successful Lagos authorities has ordered the United Bank for Africa (UBA) to instantly refund institution funds belonging to Addy Finance & Investments (Addyfx) Limited, alongside accrued interest.

Justice Dehinde Dipeolu, who issued the ruling, ordered UBA to wage the institution liquidator the sums of ₦39,108,417 and $53,078.04, with pre-judgement involvement astatine 20% and post-judgement involvement astatine 10% per annum.

The ruling was fixed pursuing an exertion by the liquidator successful the winding-up suit FHC/L/CP/1577/2021: Nduka Nwabuwa & 3 Ors v. Addy Finance & Investments Ltd.

The tribunal ruled that UBA indispensable refund the relationship equilibrium of Addyfx to the liquidator, with accrued interest. Photo credit: UBA Group/Contributor
Source: UGC

The exertion sought, among different reliefs, the betterment of the company's funds held by United Bank for Africa Plc (UBA) and the transportation of its relationship statements arsenic required nether Sections 576, 577, and 603 of CAMA 2020 and the Companies Winding-Up Rules 2001.

How Addy Finance crashed successful 2021

More popularly known arsenic Addy Fx, Addy Finance and Investment Limited was an concern institution founded successful November 2018 by Adoms Uju Francis.

The institution operated arsenic a forex trader, promising investors up to 25% monthly involvement successful 2 concern cycles. The institution secured the Securities and Exchange Commission (SEC) licence successful 2021 and started attracting adjacent much investors.

Unfortunately, it failed soon after, with up to ₦13 cardinal of investors’ funds trapped successful it, according to FIJ analysis.

The liquidation quality has lingered since 2021, tying down the company’s funds with UBA, till the tribunal precocious ruled connected it, allowing the liquidator to retrieve the funds from UBA.

Court orders UBA to taxable relationship statements

The tribunal besides ordered UBA to taxable certified statements of the relationship belonging to the company, covering from Tuesday, 2 November 2021 (the commencement of the company’s winding up), to the day of the judgement.

The counsel to the liquidator, T.Y.Salman, argued that it was unlawful for UBA to withhold the company’s funds aft the tribunal orders restraining withdrawals since Wednesday, 30 March 2022, and the assignment of a provisional liquidator connected Tuesday, July 5, 2022.

The ruling relied connected UBA’s affidavit successful earlier proceedings, which showed the company’s relationship balances with UBA were N30,455,571.65, N8,652,845.56, and $53,078.04, the SUN reports.

Why the Court ruled against UBA

In the ruling, Justice Dipeolu recovered that UBA did not comply with its obligations and attempted to trust connected garnishee orders and interim forfeiture orders obtained aft the winding-up commenced, some of which are void nether Section 577 of CAMA 2020.

The tribunal besides stated that UBA had exhibited inconsistencies successful its behaviour by filing a sworn connection successful November 2023 denying the beingness of funds, portion simultaneously negotiating and paying implicit N27 cardinal to immoderate of the company’s creditors successful a abstracted suit, without disclosing the winding-up bid oregon the assignment of a liquidator.

UBA had besides failed to service captious documents (Exhibit ATO 6) connected the liquidator until aft the consent judgement and payments had been made.

The slope besides went up to participate colony presumption and disburse the institution funds without involving the institution oregon the Economic and Financial Crimes Commission (EFCC), with immoderate UBA unit reportedly receiving ₦16 cardinal retired of the sum.

Justice Dipeolu held that the slope bore the load of proving that the equilibrium did not exist, and condemned the nonrecreational behaviour of UBA’s counsel.

The tribunal frankincense granted the liquidator's alleviation and ordered UBA to refund N30,455,571.65 (balance arsenic of Thursday, December 1, 2022), N8,652,845.56 (balance arsenic of Wednesday, March 1, 2023), and $53,078.04 (balance arsenic of Wednesday, March 1, 2023).

This quality means that investors who mislaid wealth to the strategy whitethorn soon commencement receiving payments. Photo credit: Seng Kui Lim, Majority world
Source: Getty Images

Hope for investors arsenic liquidator recovers institution funds

This quality signifies anticipation for investors who mislaid important funds to Addyfx, Farmkonnext, Farmsponsor, Farmfunded, and different collapsed concern platforms.

The load present lies connected the liquidator to enactment with the EFCC to instrumentality investors' funds to them, arsenic overmuch arsenic tin beryllium covered with the recovered funds.

Following the caller collapse of CBEX concern platform, the EFCC has besides assured CBEX investors that it would recover their funds and apprehend the criminals.

SEC bans online concern platforms

In related news, President Bola Tinubu has signed the Investments and Securities Act 2025 into law, introducing cardinal reforms.

Legit.ng reported that 1 of these reforms banned online overseas exchange (forex) trading platforms, online concern platforms, and different online exchanges.

This is simply a determination aimed astatine protecting Nigerian investors successful the online abstraction and curbing marketplace abuses.

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Source: Legit.ng