Ethiopian authorities have conducted one of the largest coordinated crackdowns in recent years, arresting 112 individuals linked to illegal foreign exchange operations and P2P cryptocurrency trading. The arrests include both Ethiopian citizens and foreign nationals, highlighting the government’s intensified efforts to stabilize the economy and protect scarce foreign currency reserves.

Months-Long Investigation Leads to Major Bust

The National Intelligence and Security Service (NISS) stated that the crackdown is the result of months of detailed intelligence gathering. The operation targeted underground networks involved in black-market currency trading, money laundering, illegal international transfers, and unlicensed P2P crypto activities.

Authorities said that the networks were using sophisticated methods, including fake import-export records, shell companies, encrypted messaging apps, and unauthorized cryptocurrency platforms, to bypass the formal financial system.

Over 500 Bank Accounts Frozen

As part of the operation, investigators froze 519 bank accounts allegedly used to move illicit funds across borders. Officials also seized digital devices, transaction records, false documentation, and foreign currencies tied to illegal operations.

NISS emphasized that these financial networks were not only destabilizing the forex market but were also undermining macroeconomic reforms designed to reduce inflation, increase financial transparency, and strengthen Ethiopia’s external reserves.

P2P Crypto Traders Targeted

In addition to forex brokers, the operation targeted Ethiopian P2P cryptocurrency traders suspected of facilitating illegal transactions outside the National Bank of Ethiopia’s supervision. Many of these traders were reportedly enabling cross-border crypto transfers, converting foreign currency at black-market rates, and bypassing regulatory channels. Authorities stressed that all such P2P operations without proper licensing are considered illegal.

Impact on Importers, Exporters, and Money Transfer Operators

The crackdown extended beyond individual brokers to include importers and exporters who manipulated documentation to divert foreign currency, as well as international money transfer operators whose licenses had previously been revoked. NISS also confirmed that operators of mobile and web-based apps enabling illegal currency transfers were arrested, signaling the government’s intent to dismantle the digital infrastructure supporting these schemes.

National Security Concerns

Officials warned that some networks had links to anti-state actors and armed groups. Intelligence reports suggest that illicit funds were being used to disrupt government development projects, create artificial currency shortages, and stir public unrest. Authorities highlighted the coordinated nature of these networks, which posed both economic and national security threats.

What’s Next?

NISS stated that the government will continue decisive action against illegal forex and P2P trading activities. Citizens are encouraged to report suspicious operations, and authorities reiterated that all legitimate funds remain safe.

The crackdown signals Ethiopia’s commitment to ensuring a transparent, regulated financial system while protecting national security and economic stability.