On Monday, the Central Bank of Nigeria (CBN) reportedly prohibited microfinance banks, including Moniepoint, Opay, and Kuda, from onboarding new customers and opening additional accounts. The move follows allegations that these institutions were facilitating cryptocurrency transactions and potentially manipulating the value of the naira.

This action came shortly after the Economic and Financial Crimes Commission (EFCC) obtained a court order to freeze 1,146 bank accounts allegedly involved in illegal foreign currency transactions. Justice Emeka Nwite granted the EFCC’s request to complete its investigation within 90 days.

The EFCC’s investigation alleges that the frozen accounts are primarily used by individuals and businesses engaged in illicit activities, including financing of terrorism and money laundering. The accounts are said to be connected to virtual cryptocurrency exchange platforms, which have been used to illegally manipulate the naira’s value and launder illicit funds.

The EFCC emphasized the need to freeze the accounts to prevent further illicit activities and to secure funds for potential prosecution.