A Nigerian anti-corruption agency has frozen bank accounts (over $330,000) belonging to suspected cryptocurrency users on global platforms such as Kucoin and Bybit. The agency believes that these users have been manipulating the Nigerian currency (naira) through their trading activities. The exchanges have also been accused of failing to comply with anti-money laundering and anti-terrorist financing regulations.
Bank account owner accused of illegal forex trading
Nigeria’s anti-corruption agency, the Economic and Financial Crimes Commission (EFCC), has reportedly received court approval to freeze bank accounts holding more than $330,000 (NGN 548.6 million) belonging to suspected cryptocurrency users. The agency argues that these bank accounts are contributing to the continued decline of the local currency.
The affected bank accounts are said to belong to cryptocurrency users trading on global platforms such as Kucoin and Bybit. The EFCC, which also targeted Binance, said the frozen funds were used by cryptocurrency traders suspected of engaging in price manipulation.
Okoro Philip, an investigator for the EFCC, directly blamed cryptocurrency traders on Bybit and Kucoin for the naira’s devaluation. In a court filing dated September 3, Okoro accused the bank account holders of illegally trading 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 USDT (a digital dollar) is exchanged for other currencies, including naira. One USDT is equivalent to one US dollar (USD). The exchange rates determined by users of these cryptocurrencies adversely affect the value of the naira by artificially devaluing it,” the EFCC investigator said.
EFCC alleges proceeds of crime were traded on named exchanges
Meanwhile, the EFCC alleged that proceeds from criminal activities and funds intended for terrorism are being traded on the platforms of the alleged cryptocurrency exchanges.
Reports of the anti-corruption agency retargeting global cryptocurrency exchanges come just days after the Central Bank of Nigeria (CBN) intervened to stem the slide in the value of the naira. According to Bitcoin.com News, the CBN recently sold US dollars to money changers at a rate below the official foreign exchange market.
The intervention comes after weeks of steady depreciation of the naira, which observers say was due to a surge in demand for U.S. dollars. The naira has lost about 70 percent of its value since the start of the year. Some observers believe the decline will continue unless the country reduces its demand for U.S. dollars.
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