A Nigerian court has ordered the freezing of N548.6 million ($716,000) belonging to suspected cryptocurrency users on platforms like Bybit and KuCoin. The order, secured by Nigeria’s Economic and Financial Crimes Commission (EFCC), claims these individuals were involved in manipulating the value of the Nigerian Naira.
In a court filing dated September 3, the EFCC accused crypto firms, including Bybit and KuCoin, of aiding the devaluation of the Naira. The EFCC also charged the platforms with supporting activities like ‘price discovery, confirmation, and market manipulation,’ which directly impacted the exchange rate and caused the Naira to depreciate.
Also Read: Nigerian SEC to Enforce Regulatory Action Against Unregistered Crypto Platforms
EFCC Investigates Crypto Firms Amid Financial Crimes Probe
EFCC investigator Okoro Philip highlighted in his affidavit that the Naira saw a significant drop in value on April 18, 2024. He attributed this decline to activities in digital currency trading platforms such as Bybit and KuCoin, which he alleges depredated government attempts at stabilizing the currency. It is a perceived crackdown on these platforms that is a continuation of the political probe of financial crimes in Nigeria, with the EFCC being on the lookout for illicit businesses such as money laundering and terrorism financing.
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Besides targeting Bybit and KuCoin, the EFCC is also investigating Binance and its executives. The government still detains Binance Vice President Tigran Gambaryan for charges of illegal money flow and laundering while information on his health-related issues circulates. Although banned from engaging in foreign exchange activities, these individuals allegedly used crypto platforms to bypass restrictions.
In conclusion, the EFCC’s ongoing investigation reveals the government’s increasing efforts to clamp down on cryptocurrency platforms suspected of financial crimes. However, this recent court order is another process through which Nigeria is trying to safeguard its financial system from further deterioration.
Also Read: Nigeria’s Crypto Market Faces Turmoil as Regulatory Crackdowns and International Exodus Intensify
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.