A Federal High Court in Abuja has ordered the freezing of N548.6 million belonging to Nigerian users of cryptocurrency trading platforms ByBit and KuCoin over allegations of manipulating the naira’s exchange rate fluctuations.
The order was issued following a petition by the Central Bank of Nigeria (CBN), which accused the platforms of facilitating activities that contributed to the instability of the local currency.
The court ruling, handed down by Justice Ahmed Mohammed, mandates the immediate freezing of funds in several bank accounts linked to the users of ByBit and KuCoin. According to court documents, the CBN argued that the crypto platforms allowed speculative trading that led to significant volatility in the naira’s value, adversely affecting the Nigerian economy.
The CBN’s petition highlights concerns about unregulated cryptocurrency transactions and their impact on the exchange rate. It also accused the platforms of enabling illegal foreign exchange activities by allowing users to trade on margin, which exacerbated the decline of the naira against major foreign currencies.
Justice Mohammed directed all affected financial institutions to comply with the order immediately and submit comprehensive reports detailing the frozen funds. The court also scheduled a hearing for the accused parties to respond to the allegations and present their defense.
READ ALSO: CBN Sells $20,000 to Each Qualified Bureau de Change at N1,580 per Dollar
The freezing of the funds has sent shockwaves through the Nigerian crypto community, with many users expressing concerns over their investments and the future of cryptocurrency trading in the country. ByBit and KuCoin have yet to issue official statements regarding the court order, but legal experts suggest that they may challenge the ruling in the coming days.
This development is the latest in the CBN’s ongoing efforts to regulate cryptocurrency activities and control the naira’s volatility. The central bank has been actively clamping down on crypto trading, warning financial institutions and the public about the risks associated with digital assets.
The outcome of this case could have significant implications for Nigeria’s crypto industry, potentially leading to stricter regulations or even a complete ban on certain types of crypto transactions.
