September 12 2024 – Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC), has obtained a court order freezing N548.6 million in bank accounts linked to suspected crypto users on platforms like ByBit, KuCoin, and others. The EFCC alleges these individuals played a role in the devaluation of the Nigerian naira.
The court’s decision, based on a September 3rd motion, highlights major foreign crypto platforms ByBit and KuCoin for allegedly facilitating the currency’s depreciation. This action is part of a broader government campaign against alleged foreign exchange violations and tax evasion by foreign cryptocurrency platforms.
Naira Fluctuation Allegations
In February 2024, Nigeria’s security agency arrested two Binance executives following intelligence from the National Security Adviser, accusing them of money laundering and terrorism financing. This incident highlighted concerns about the potential misuse of cryptocurrency platforms. There are reports that the EFCC is currently pursuing legal action against Binance and Tigran Gambaryan over money laundering offenses involving $35.4 million.
This further underscores the agency’s efforts to address alleged financial irregularities within the cryptocurrency sector.
The EFCC has expanded its investigation into cryptocurrency platforms, accusing ByBit, KuCoin, and others of enabling Nigerian users to manipulate the naira’s value through price discovery and market manipulation.
An EFCC investigator, Okoro Philip, stated in an affidavit that the naira’s value had been stabilized until April 18, 2024, when it plummeted due to activities on platforms like ByBit and KuCoin.The EFCC alleges that these platforms facilitated the exchange of USDT (a digital dollar) to naira at rates detrimental to the Nigerian financial system. They accuse the platforms of ignoring anti-money laundering laws and enabling users to operate with secrecy.The EFCC claims that the proceeds of such manipulations are used for criminal activities, including terrorism financing.
They have obtained court orders to freeze bank accounts linked to these activities.The Commission has written to banks to request account details and has filed criminal charges against some account operators.
This latest development follows a previous court order freezing accounts for illegal financial transactions. While some freezing orders were lifted, the EFCC has continued its investigation and filed charges.
ByBit, known for its peer-to-peer trading, remains one of the few cryptocurrency exchanges still operating in Nigeria.
However, the Nigerian government’s crackdown on cryptocurrency has led to restrictions on trading and the exit of some platforms like Binance.
Blessed is a dedicated grants and business funding researcher with a keen eye for uncovering opportunities. With a background in digital marketing and social media management, she brings a unique perspective to her work. Blessed is passionate about helping individuals and businesses secure the funding they need to achieve their goals. Her expertise and dedication make her a valuable resource for anyone seeking financial support.
