Binance Under Scrutiny: Nigerian Authorities Probe Allegations of Market Manipulation and Forex Price Distortions

Binance Under Scrutiny: Nigerian Authorities Probe Allegations of Market Manipulation and Forex Price Distortions

Recent revelations from internal analyses conducted by TechCabal have confirmed the Central Bank of Nigeria’s suspicions of market manipulation of forex prices on the popular cryptocurrency exchange, Binance.

TechCabal Analysis Highlights Disturbing Trends

An analysis of trading activities between February 19 and February 21 revealed a pattern of suspicious behavior among Nigerian retail traders on Binance.

The data suggested that these traders were initiating large buy orders for USDT without completing the purchases, allegedly to manipulate prices and capitalize on resulting arbitrage opportunities.

Ongoing Investigations and Legal Proceedings

Research teams continue to delve into the findings, with ongoing analyses shedding light on the extent of the alleged market manipulation.

Meanwhile, operatives from the Economic and Financial Crimes Commission (EFCC) have been surveilling the Binance platform, uncovering evidence of price discovery, confirmation, and market manipulation.

Court Orders Data Handover Amid Regulatory Pressure

In response to mounting concerns, Nigerian authorities have taken legal action, compelling Binance to provide information on its top users and transaction history.

A recent court ruling mandated the exchange to surrender data, potentially aiding in the identification of traders implicated in the alleged market distortions.

Binance’s Response and Regulatory Impact

While Binance has signaled cooperation with the government, citing past assistance in financial crime investigations, the exchange faces mounting regulatory pressure.

Recent developments have led to the suspension of Binance’s services in Nigeria, including the delisting of its NGN/USDT trade option.

Executives Detained as Investigation Unfolds

Two senior executives of Binance, Nadeem Anjarwalla and Tigran Gambaryan, remain in custody as authorities continue their probe.

Despite the expiration of a court order permitting their detainment, the executives have yet to be released, signaling the gravity of the situation as the investigation unfolds.

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