EFCC Secures an Order from the Federal High Court, Freezes N548m Crypto Funds on ByBit, KuCoin and Others

The Economic and Financial Crimes Commission (EFCC), has secured an order from the Federal High Court to freeze N548.6 million in bank accounts.

The bank accounts are said to belong to suspected crypto users on platforms like ByBit, KuCoin, and others, based on their alleged role in naira fluctuations.

EFCC Goes After Bybit, KuCoin and Others

The Nigerian anti-graft agency filed the motion on September 3.

The order casts a fresh spotlight on major foreign crypto platforms, ByBit and KuCoin, accusing them of aiding the devaluation of the Nigerian currency.

The agency went on to accuse the crypto platforms of deliberately ignoring mandatory requirements under Nigeria’s anti-money laundering laws and regulations, enabling users to operate under a cover of secrecy. 

Rogue Crypto Users Manipulates Naira Value

The EFCC also alleged that proceeds of crimes and funds for terrorist activities are covertly exchanged through these platforms.

EFCC investigator Okoro Philip said, “These fluctuations were primarily driven by activities on platforms such as ByBit, KuCoin, and other similar cryptocurrency platforms.”

“Also, the exchange rates determined by users of these cryptocurrencies adversely affect the value of the naira by artificially lowering its value.”

Furthermore, he pointed to a sharp drop in the naira’s value on April 18, 2024, when it went from N1,250 to N1,980 to $1 USD on the black market, reversing months of government efforts to stabilize the currency.

Also Read: EFCC Blocks 1,146 Bank Accounts Involved in Unauthorized Foreign Exchange Deals

Conclusion

This impactful move comes after a prior court ruling, which was granted on April 25, 2024, and which froze 1,146 accounts for ninety days due to comparable claims of illicit financial transactions. 

Also, the EFCC has brought criminal charges against certain account holders and is still conducting its investigation, even if some of those freezing orders were eventually removed.

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