The Economic and Financial Crimes Commission (EFCC) has expanded its investigations into cryptocurrency platforms to include ByBit and KuCoin, alongside certain unnamed entities also included in the indictment. The prosecutors claim in their indictments that these platforms made it possible for Nigerian users to manipulate the market, leading to distortions and a decline in the naira against other currencies.
Nairametrics had exclusive access to an affidavit where EFCC’s investigator, Okoro Philip, said that Nigeria had made significant strides in stabilizing its currency lately, with the dollar trading at N980=$1 on the black market. However, those gains vanished quickly on April 18, 2024, when the dollar rose to N1,250=$1 on the parallel market.
According to the EFCC’s investigation, allegations against these cryptocurrency platforms indicate that Nigerian users were facilitated in “price discovery, confirmation, and market manipulation,” which contributed to distortions in market forces, thereby causing the naira to lose its value over time.
The commission has spelled out its extended indictment against potential dangers to economic stability in Nigeria and threats posed to the naira’s value in return.
