…So far, the Nigerian authorities have directly demanded copies of internal communications and data from Binance personal devices, according to sources familiar with the Federal Government investigations
…The Central Bank of Nigeria is part of an interagency taskforce that has been investigating the activities of crypto exchanges in Nigeria.
…SEC Nigeria, is considering a huge fine on Binance and on other cryptocurrency companies in Nigeria, amounting to billions of dollars.
THUR, FEB 29 2024-theGBJournal| Nigeria’s probe, which led to the arrest of two Binance employees on Monday, is only one of the numerous list of infraction entanglement facing the world’s biggest crypto exchange.
The crypto exchange problems in Nigeria intensified on Tuesday when the Governor of the Central Bank Bank of Nigeria (CBN) told the world in his first Monetary Policy Committee (MPC) meeting since assuming office as the apex bank Governor, that over the $26 billion has passed through Binance Nigeria in the last four years from sources and users ”who we cannot adequately identify.”
The Governor came short of accusing Binance of being behind the negative manipulation of the local currency, the Naira.
But by Wednesday following the Governor’s revelation, the Federal Government had secured a court warrant to hold two of its visiting executives in custody for minimum of twelve days.
The crypto exchange, in response, shut down trading of the Naira against bitcoin and tether cryptocurrencies on its exchange, amidst the clampdown by the Federal Government on cryptocurrency platforms including OctaFX and Coinbase, in a move targeted at averting what the government considers continuous manipulation of the foreign exchange market and illicit movement of funds.
So far, the Nigerian authorities have directly demanded copies of internal communications and data from Binance personal devices, according to sources familiar with the Federal Government investigations, marking yet another jurisdiction in which government watchdogs have closed in.
Sources familiar with the case say Binance is not fully cooperating yet in the ongoing investigation.
The Central Bank of Nigeria is part of an interagency taskforce that has been investigating the activities of crypto exchanges in Nigeria.
Binance has faced legal headwinds in the U.S, where the Department of Justice (DoJ) demanded $4 billion for infractions, France, the Netherlands, Canada and Australia where it has operated for years without serious regulatory intervention.
In July, 2023, Binance and its CEO Changpeng ”CZ” Zhao was charged by the U.S Securities and Exchange Commission for what it says is ”extensive web of deception, including deliberate evasion of government oversight.
Binance has since been driven Netherlands after its legal woes.
Meanwhile, the Securities and Exchange Commission (SEC) Nigeria, is considering a huge fine on Binance and on other cryptocurrency companies in Nigeria, amounting to billions of dollars.
If the Nigerian authorities allegations are proved, they implicate very serious criminal misconduct, including national-security breach, money laundering and providing illegal services.
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