There are reports that Nigeria’s Securities and Exchange Commission (SEC) is investigating allegations of currency manipulation by cryptocurrency firms, including Binance.
It is believed that the SEC may impose large fines on the companies for their alleged actions, which are said to have contributed to the current FX liquidity crisis in the country. Binance has previously been sanctioned by the US Government for currency manipulation.
Following the crackdown, Binance has reportedly suspended its operations and barred users from buying the USDT and USDC stablecoins with Naira. It has also been reported that two Binance executives were detained by security operatives and questioned about their naira operations over the past seven years.
The federal government has demanded that Binance delete naira information from its platform, which executives reportedly declined to do. The CBN Governor has justified the bank’s recent clampdown on cryptocurrency platforms, particularly Binance, which he said allowed its platform to be used for speculative activities against the naira.