Court Freezes N548.6 Million in Bybit and kucoin Crypto Users’ Accounts

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The Economic and Financial Crimes Commission (EFCC) has obtained a court order to freeze N548.6 million in bank accounts belonging to suspected crypto users on platforms like ByBit, KuCoin, and others. The move is part of a broader effort by the Nigerian government to address alleged foreign exchange violations and tax evasion by foreign cryptocurrency platforms.

According to a motion filed by the EFCC, the frozen accounts are linked to users who allegedly engaged in “price discovery, confirmation, and market manipulation” through their crypto platforms, causing distortions in the market that resulted in the devaluation of the Nigerian currency.

The EFCC claims that the fluctuations in the naira’s value were driven by activities on platforms such as ByBit, KuCoin, and others, which allowed users to exchange USDT (a digital dollar) for naira at rates detrimental to Nigeria’s financial system.

The agency alleges that these platforms deliberately ignored Nigeria’s anti-money laundering laws and regulations, enabling users to operate under a cover of secrecy. The EFCC also claims that intelligence has revealed that proceeds of crimes and funds for terrorist activities are being covertly exchanged through these platforms.

The EFCC has written to all the banks where the accounts are domiciled, requesting hard copies of the identified account details, and has obtained a court order to freeze the accounts pending the conclusion of its investigation and prosecution.

The affected accounts include those of Kora Payment Network, AD Ishola Farms Ltd, and Microcore Tech Investment Services. The EFCC is seeking to freeze these accounts until its investigation is complete.

This latest development comes amid a broader crackdown on cryptocurrency exchanges and related transactions in Nigeria. The Central Bank of Nigeria (CBN) has ordered fintech companies to stop onboarding new customers and report any account trading in cryptocurrency to the National Security Adviser through their regulator.

The CBN’s directive has forced fintech companies like OPay, Palmpay, Moniepoint, Kuda, and Paga to prohibit cryptocurrency or virtual currency transactions on their platforms. Binance, a major cryptocurrency exchange, has also exited the Nigerian market due to regulatory pressures.

The Nigerian government’s clampdown on cryptocurrency exchanges is part of its efforts to stabilize the country’s currency and address concerns about money laundering and terrorism financing. The move has significant implications for the country’s fintech sector and could have far-reaching consequences for individuals and businesses involved in cryptocurrency transactions.


Copyright 2024 REPORT AFRIQUE (RA). Permission to use portions of this article is granted provided appropriate credits are given to www.reportafrique.com and other relevant sources.This Article is Fact-Checked. See Policy.
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