Nigeria Freezes KuCoin, Bybit Accounts for Naira Devaluation

• The Nigerian court ordered the freeze of N548.6M belonging to suspected crypto users of Bybit and KuCoin.
• The EFCC obtained the court order against crypto users allegedly involved in Naira’s fluctuations.
• The users exchanged Naira for USDT at prices detrimental to Nigeria’s financial interests.

A Nigerian court has ordered the freezing of N548.6 million ($716,000) belonging to suspected crypto users on platforms like Bybit and KuCoin. The order, secured by Nigeria’s anti-corruption agency, the Economic and Financial Crimes Commission (EFCC), alleges these individuals were involved in manipulating the value of the Nigerian Naira.

Crypto Platforms Accused of Facilitating Naira’s Decline

In a court filing dated September 3rd, the EFCC accused certain crypto firms, including Bybit and KuCoin, of aiding the devaluation of the Naira. The platforms allegedly encouraged activities such as “price discovery, confirmation, and market manipulation”, leading to market distortion and the Naira’s decline against other currencies.

EFCC investigator Okoro Philip stated in his affidavit that the Naira experienced a significant drop in value on April 18, 2024, undermining the government’s efforts to stabilize the currency. He attributed these fluctuations primarily to activities on platforms like Bybit and KuCoin.

This move against crypto platforms is part of a larger investigation into suspected financial crimes in Nigeria. Notably, Binance and its executives have been charged with illegal flows and money laundering. Binance executive Tigran Gambaryan remains in government custody despite reported health issues.

Read also: Binance Executive’s Lawyer Questions EFCC’s Failure to Produce Evidence

The EFCC has to-date frozen 22 bank accounts linked to these crypto platforms. The agency claims that the users exchanged Naira for the USD-backed stablecoin USDT at rates harmful to Nigeria’s financial interests.

Despite being banned from foreign exchange activities, these individuals allegedly turned to crypto platforms. The agency further alleges that these platforms were used for illicit activities such as money laundering and terrorist financing.