The Economic and Financial Crimes Commission (EFCC) has obtained court orders freezing accounts linked to cryptocurrency services ByBit and KuCoin, totalling N548.6 million, or around $670,000.
The platforms’ alleged contribution to the further depreciation of the naira is the subject of this motion, dated September 3, 2024.
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Currency Manipulation and Foreign Exchange Violations by Crypto Firms
The EFCC has accused ByBit, KuCoin, and others of enabling illegal foreign exchange transactions and destabilising the naira’s value by facilitating unauthorised naira-for-USDT exchanges. An affidavit by EFCC investigator Okoro Philip noted that these platforms contributed to market manipulation that caused the naira to drop sharply from N1,250 to N1,980 against the dollar in April 2024.
Twenty-two frozen bank accounts have been identified as channels used for these illicit transactions. According to the EFCC, individuals behind these accounts were involved in foreign exchange activities despite not being licensed to do so and were using ByBit and KuCoin as the exchange medium for naira and USDT.
Broader Concerns Over Money Laundering and Terrorism
In addition to currency devaluation, the EFCC has expressed concerns about money laundering and terrorism financing facilitated by the anonymity of these crypto platforms. To investigate these activities further, the Commission has requested more information from banks related to the frozen accounts.
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Ongoing Government Efforts to Regulate Cryptocurrency
This latest freeze is part of a broader crackdown by Nigerian authorities on cryptocurrency platforms. The court order follows a similar ruling from April 2024, when the EFCC froze over 1,146 accounts linked to suspected illegal financial activities. While some freezing orders have been lifted, the EFCC continues to build cases against those involved.
By targeting platforms like ByBit and KuCoin, the Nigerian government is attempting to curb the negative impact of unregulated cryptocurrency on the nation’s economy. The investigation is ongoing as the EFCC seeks to address the economic harm caused by unauthorised crypto-related transactions.