Legal Action Against Cryptocurrency Fraudsters in Nigeria
A Federal High Court in Abuja, Nigeria, has reportedly authorized the Economic and Financial Crimes Commission (EFCC) to detain six individuals associated with alleged fraudulent activities linked to a cryptocurrency exchange.
Details of the Allegations
In a recent article by The Cable published on April 24, it was reported that these suspects had engaged in misleading investment practices through the Crypto Bridge Exchange (CBEX), allegedly conning investors out of approximately 1 billion naira, equivalent to about $620,000.
The court’s decision came amid growing concerns regarding investment fraud in the cryptocurrency sector in Nigeria. The EFCC’s motion detailed that the accused operated under a company named ST Technologies International Limited, through which they promoted the CBEX platform, enticing members of the public to invest their cryptocurrencies without proper disclosures or protections.
Background of the Situation
As of now, there have been no reports of the suspects being apprehended. This latest legal action underscores Nigeria’s ongoing efforts to regulate the cryptocurrency landscape, as authorities have ramped up scrutiny of such platforms. Earlier this year, in February 2024, two executives from Binance were detained during a visit to discuss the company’s operations in Nigeria, amidst a broader investigation into the exchange’s activities.
Consequences for Investors
The situation has escalated for CBEX, as numerous users reported being unable to withdraw their funds in April, leading to significant backlash. This included instances of violence at CBEX’s local headquarters in Ibadan, where angry investors vandalized the office in frustration over their financial losses.
Ongoing Investigations
Additionally, the case against Binance continues to unfold. Tigran Gambaryan, a U.S. citizen who was detained on accusations of tax evasion and money laundering, faced serious health issues during his eight-month imprisonment before being returned to U.S. custody. Although Binance does not maintain a physical presence in Nigeria, the Nigerian authorities are pressing forward with their investigation related to tax compliance.
Attempts to acquire comments from the Ministry of Information regarding the latest developments went unanswered at the time of this report.
