The Economic and Financial Crimes Commission (EFCC) has obtained a court order to freeze N548.6 million in bank accounts linked to suspected Nigerian cryptocurrency users on platforms such as ByBit and KuCoin. The funds were frozen due to allegations that these platforms contributed to the devaluation of the naira.
The Federal High Court order, granted on September 3, 2024, targets the role of these foreign crypto exchanges in enabling price manipulation, which reportedly caused significant fluctuations in the value of the Nigerian currency.
This move is part of a broader crackdown by federal agencies on cryptocurrency platforms accused of violating foreign exchange laws and facilitating money laundering. In February 2024, two Binance executives were arrested under similar allegations.
The EFCC claims that platforms like ByBit and KuCoin allowed Nigerian users to engage in market manipulation, leading to drastic changes in naira exchange rates. EFCC investigator Okoro Philip highlighted that the naira’s value was improving but suddenly plummeted in April 2024, an event allegedly linked to activities on these platforms.
The court order covers 22 bank accounts, where users engaged in unauthorized cryptocurrency exchanges, converting USDT to naira at rates harmful to the Nigerian economy. The EFCC also alleges that proceeds from these transactions may be connected to money laundering and terrorist activities.
EFCC counsel, Ekele Iheanacho, successfully urged the court to freeze the identified accounts, pending further investigation and prosecution. The case is part of ongoing efforts to regulate Nigeria’s cryptocurrency market, which has seen multiple freezes and investigations into unauthorized financial transactions and foreign exchange dealings.
