A Nigerian anti-corruption agency froze bank accounts (over $330,000) belonging to suspected cryptocurrency users on global platforms like Kucoin and Bybit. The agency believes these users manipulated the Nigerian currency (naira) through their trading activity. The exchanges are also accused of failing to adhere to anti-money laundering and terrorist financing regulations.
Bank Account Holders Accused of Illegal Forex Trading
A Nigerian anti-corruption agency, the Economic and Financial Crimes Commission (EFCC), has reportedly been granted court approval to freeze bank accounts holding more than $330,000 (NGN548.6 million) belonging to suspected cryptocurrency users. The agency argued that the bank accounts were contributing to the local currency’s ongoing decline.
The affected bank accounts are believed to be owned by cryptocurrency users who trade on global platforms like Kucoin and Bybit. The EFCC, which has also targeted Binance, contends that the frozen funds were being used by suspected cryptocurrency traders engaged in price manipulation.
Okoro Philip, an EFCC investigator, directly blamed cryptocurrency traders on Bybit and Kucoin for the naira’s depreciation. In a court filing dated Sept. 3, Okoro accused the bank account owners of illegally dealing in foreign exchange and cryptocurrencies. He also criticized Kucoin and Bybit for failing to comply with mandatory anti-money laundering regulations.
“Bybit is a cryptocurrency platform where the exchange of USDT (a digital dollar) to other currencies, including the naira, takes place. One USDT is approximately equivalent to one United States dollar (USD). The exchange rates determined by users of these cryptocurrencies adversely affect the value of the naira by artificially lowering its value,” the EFCC investigator said.
EFCC Alleges Criminal Proceeds Traded on Named Exchanges
Meanwhile, the EFCC alleges that proceeds from criminal activities and funds intended for terrorists are being traded on the platforms of the accused cryptocurrency exchanges.
Reports of the anti-graft body’s renewed targeting of global cryptocurrency exchanges surfaced just days after the Central Bank of Nigeria (CBN) intervened to halt the naira’s slide. As reported by Bitcoin.com News, the CBN recently sold U.S. dollars to bureaux de change at a rate lower than the official foreign exchange market.
The intervention followed weeks of continuous depreciation of the naira, which observers attribute to a surge in demand for U.S. dollars. Since the beginning of the year, the naira has depreciated by roughly 70%. Some observers believe the decline will persist unless the country curtails the demand for U.S. dollars.
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