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The Economic and Financial Crimes Commission (EFCC) has obtained a Nigerian court order to freeze ₦548.6 million (approximately $670,000 USD) held in accounts tied to users of ByBit and KuCoin. This action is part of a broader federal campaign targeting foreign exchange violations and tax evasion linked to foreign crypto platforms.
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Dated September 3, 2024, the court order accuses ByBit and KuCoin of facilitating activities that devalue the Nigerian naira. The EFCC claims that these cryptocurrency platforms have been instrumental in “price discovery, confirmation, and market manipulation,.” These actions led to sharp fluctuations in the naira’s value. The commission highlighted an instance on April 18, 2024, where the naira plummeted from N1,250 to N1,980 against the US dollar in the black market.
According to the EFCC, 22 frozen bank accounts were used by individuals to exchange naira for USDT.
The USDT is a stablecoin pegged to the US dollar at rates harmful to Nigeria’s economy. The agency alleges that these users were not licensed to trade in foreign exchange and were leveraging ByBit and KuCoin to exploit currency volatility.
The EFCC further accused the platforms of enabling illicit activities such as money laundering and terrorism financing due to the anonymity they offer. ByBit and KuCoin have yet to respond publicly to these accusations.
This freeze follows a similar court ruling from April 2024, which saw 1,146 accounts frozen over allegations of illegal financial transactions. Some of these freezing orders have since been lifted, but investigations and prosecutions are ongoing.
The EFCC continues to scrutinize foreign cryptocurrency platforms as part of Nigeria’s effort to safeguard its financial system and currency stability.
