The Economic and Financial Crimes Commission (EFCC) has obtained an order from the Federal High Court to freeze N548.6 million across bank accounts linked to cryptocurrency users on platforms such as ByBit and KuCoin. This action stems from allegations that these platforms are facilitating naira devaluation and contributing to fluctuations in the currency’s value.
The motion, filed on September 3, 2024, points to foreign crypto exchanges, accusing them of exacerbating the naira’s decline through market manipulation and other illicit activities. The EFCC’s move is part of a wider effort by federal agencies to address foreign exchange violations and tax evasion involving cryptocurrency platforms operating in Nigeria.
This development follows a similar case earlier this year when two executives from Binance were arrested in connection with money laundering and terrorism financing allegations. The EFCC is currently pursuing legal action against Binance and Tigran Gambaryan over offenses amounting to $35.4 million.
In this latest case, the EFCC has implicated ByBit, KuCoin, and other unnamed platforms for allowing their users to manipulate exchange rates, contributing to market distortions. According to EFCC investigator Okoro Philip, currency stabilization efforts by the Federal Government were disrupted in April 2024, when the naira’s value plummeted against the dollar due to these crypto activities.
The motion describes 22 bank accounts, tied to users of these platforms, that allegedly enabled unauthorized foreign exchange transactions. The EFCC contends that these users are not licensed to conduct such transactions, and the platforms have failed to comply with Nigeria’s anti-money laundering laws.
The EFCC has also highlighted concerns that proceeds from these activities may be linked to terrorism financing. The Commission has requested detailed account information from the banks involved, and the court has frozen the accounts pending further investigation and prosecution.
This case, filed under FHC/ABJ/CS/543/2024, is part of Nigeria’s ongoing crackdown on illicit crypto activities that threaten the stability of its financial system.
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