The Economic and Financial Crimes Commission (EFCC) has secured an order from the Federal High Court to freeze N548.6 million in bank accounts belonging to suspected crypto users on platforms like ByBit, KuCoin, and others. The anti-graft agency alleges that these platforms have played a role in the recent fluctuations of the Nigerian naira.
In a motion dated September 3, 2024, the EFCC accused ByBit, KuCoin, and several unnamed crypto platforms of aiding the devaluation of the Nigerian currency by enabling their users to engage in โprice discovery, confirmation, and market manipulation.โ The agency contends that these activities have caused distortions in the market, leading to the naira losing value against other currencies.
EFCC investigator Okoro Philip stated in an affidavit that Nigeria had experienced considerable gains in currency stabilization efforts in recent months, with the dollar trading at N980 to $1 on the black market. However, these gains were reversed on April 18, 2024, when the dollar surged to N1,250 to $1 on the parallel market. Further investigation revealed that these fluctuations were primarily driven by activities on cryptocurrency platforms.
The prosecution accused the crypto platforms of deliberately ignoring mandatory requirements under Nigeriaโs anti-money laundering laws and regulations, enabling users to operate under a cover of secrecy. The EFCC also alleged that proceeds of crimes and funds for terrorist activities are covertly exchanged through these platforms.
The Commission has written to all banks where the identified accounts are domiciled, requesting hard copies of the account details. EFCC counsel Ekele Iheanacho urged the court to freeze the bank accounts listed in its schedule, which belong to various individuals, some of whom are either currently being prosecuted or investigated for unauthorized foreign exchange dealings, money laundering, and terrorism financing.
The identified accounts include those of Kora Payment Network, AD Ishola Farms Ltd, and Microcore Tech Investment Services. The motion was granted by Justice Emeka Nwite on September 4, 2024.
This development is part of a broader campaign by federal government agencies to address alleged foreign exchange violations and tax evasion by foreign cryptocurrency platforms. In February 2024, Nigeriaโs security agency arrested two executives of the Binance cryptocurrency platform following allegations of money laundering and terrorism financing activities on certain cryptocurrency exchange platforms.