In another move by Nigeria’s Economic and Financial Crimes Commission (EFCC), a Federal High Court has authorized the blocking of 1,146 bank accounts allegedly connected to forex transactions. These accounts are under investigation for allegations of unauthorized foreign exchange dealings, money laundering, and terrorism financing. There are ongoing rumors that this extensive investigation specifically targets Binance Nigeria.
The situation came to light when affected customers received communications from their financial institutions. One such email stated, “It has been confirmed that you trade cryptocurrency. We humbly request that you provide us with a valid court order for the release of your funds,” highlighting the immediate impact on individuals whose funds have been frozen.
This court order, issued on April 24, followed statements from Ola Olukoyede, the EFCC Chairman, who revealed to the press that the agency had previously blocked 300 accounts involved in illegal peer-to-peer foreign exchange transactions. Olukoyede emphasized the gravity of the situation by stating that over $15 billion had circulated through one of the platforms last year alone. He remarked that the swift actions of the EFCC were crucial in preventing a potential crash of the Naira within a week.
The EFCC’s actions are part of broader efforts by Nigerian authorities to stabilize the Naira and reduce volatility driven by currency speculation. This crackdown follows charges of money laundering and tax evasion against two executives from Binance, highlighting the increasing scrutiny on cryptocurrency platforms.
Further investigations revealed that a significant percentage of the frozen accounts were held with some of Nigeria’s largest traditional banks, indicating the widespread nature of the issue. According to a report presented to Nigeria’s Central Bank in March, certain clusters of retail traders were found manipulating FX prices through large unfulfilled orders for USDT, a popular stablecoin.
Hakeem Bello, an EFCC operative, outlined in a March affidavit how these traders reportedly used the trading platform not only for trading but for price discovery and market manipulation. These activities, he noted, “have caused tremendous distortions in the market, resulting in the Naira losing its value against other currencies.”
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