Nigerian authorities freeze crypto traders’ bank accounts

Nigeria’s Economic and Financial Crimes Commission (EFCC) has frozen bank accounts totalling over $330,000, accusing cryptocurrency traders of manipulating the naira. Traders using global platforms like Kucoin and Bybit are suspected of contributing to the local currency’s depreciation through illegal foreign exchange trading. EFCC claims these platforms have failed to comply with anti-money laundering regulations, worsening the situation.

EFCC investigator Okoro Philip directly blamed these traders for the naira’s sharp decline, which has dropped by around 70% since the start of the year. He criticised Kucoin and Bybit for allowing USDT, a digital dollar, to be exchanged for naira at rates that artificially lower the currency’s value. The EFCC has expressed concerns that such platforms are being used to trade proceeds from criminal activities.

These actions follow recent intervention by the Central Bank of Nigeria, which sold US dollars at a lower rate to bureaux de change in a bid to stabilise the naira. Despite these efforts, the currency continues to struggle, and experts warn that further depreciation is likely unless demand for US dollars is curbed.