The Federal High Court has granted the Economic and Financial Crimes Commission (EFCC) the authority to freeze $331,500 (N548.6 million) held in bank accounts linked to cryptocurrency users accused of contributing to the naira’s depreciation. These individuals are associated with platforms like ByBit and KuCoin, which are alleged to have played a role in manipulating market prices and devaluing the naira.
The EFCC’s motion, filed on September 3, 2024, highlights concerns that cryptocurrency platforms violate Nigeria’s foreign exchange laws and evade taxes. ByBit and KuCoin, among others, are accused of engaging in activities like price discovery and market manipulation, which reportedly contributed to the naira’s volatility.
EFCC investigator Okoro Philip pointed out that Nigeria had seen some success in stabilizing its currency, with the dollar trading at N980 on the black market. However, on April 18, 2024, the naira significantly weakened, trading at N1,250 against the dollar, allegedly due to cryptocurrency exchanges’ actions.
In response to these developments, the Nigerian Securities and Exchange Commission (SEC) has also ramped up efforts to regulate cryptocurrency exchanges, recently granting preliminary licenses to Busha and Quidax under its Accelerated Regulatory Incubation Program. The SEC has expressed its commitment to protecting investors and enforcing compliance with anti-money laundering laws.
