The Economic and Financial Crimes Commission (EFCC) has secured a court order to freeze N548.6 million (approximately $670,000 USD) from accounts belonging to users of cryptocurrency platforms ByBit and KuCoin.
The funds were frozen following allegations that these platforms contributed to the devaluation of the Nigerian naira.
The EFCC accused ByBit, KuCoin, and other unnamed platforms of manipulating the foreign exchange market by enabling “price discovery, confirmation, and market manipulation,” which allegedly caused a sharp decline in the naira’s value against the US dollar, particularly on April 18, 2024. On that date, the naira fell from N1,250 to N1,980 to $1 USD on the black market.
The EFCC claims that 22 bank accounts, which have been frozen, were used to exchange naira for USDT (a stablecoin linked to the US dollar) at rates detrimental to Nigeria’s financial system. The agency further alleges that these platforms were used for money laundering and financing terrorist activities, owing to the anonymity they provide users.
The court’s ruling is part of a broader crackdown on foreign exchange violations and tax evasion by foreign cryptocurrency platforms. ByBit and KuCoin have not yet responded to the allegations.
This move follows a previous court order issued on April 25, 2024, which froze 1,146 accounts for 90 days over similar allegations of illicit financial activities. While some freezing orders have been lifted, the EFCC continues its investigation and has filed criminal charges against certain account holders.
