UPDATE: Tensions Escalate Between Binance And Nigeria

March 13, 2024 9:23 pm Comments

Binance and Nigeria are locked in some bitter tensions that have resulted in the arrests of several Binance executives.

The crypto exchange is working diligently with local law enforcement to secure the release of its employees and even issued a press statement detailing the numerous collaborations between Binance and Nigerian authorities.

Despite this, the executives are still locked up without any formal charges being pressed against them. Binance announced on Wednesday:

“In light of recent events, we would like to showcase our dedication to promoting the responsible growth of crypto in Nigeria with some facts and numbers.

We will continue to work with Nigerian authorities to bring our friends and colleagues home. They are professionals with the highest integrity and we will provide them and their families all the support we can.”

Wendy O provided this information on the detained Binance executives: “They were arrested February 26 when they landed in Nigeria to meet with the Nigerian government. The detention is reportedly linked to a political dispute between Nigeria and Binance.

Nigeria blames Binance for the devaluation of its currency, the Naira (The country is currently experiencing a foreign exchange crisis.) One of the executives is a former U.S. special agent involved in the Silk Road case.”

Binance outlined its previous collaborations with Nigerian law enforcement and Nigerian authorities:

Between June 2020 and February 2024, Binance’s financial crime compliance (FCC) teams responded to 626 information requests coming from Nigerian law enforcement agencies or related to investigations pertinent to Nigeria, with an average of 37.4 hours between submission and resolution.

The information we provided helped a vast range of agencies, such as the Nigeria Police Force, the Economic and Financial Crimes Commission (EFCC), and INTERPOL Nigeria to tackle crimes ranging from scams and fraud to money laundering, blackmail, kidnapping, and extortion.

In one high-profile action that took place in January 2022, we restricted 281 accounts belonging to Nigerian residents due to money laundering concerns and extensively collaborated with the authorities to protect users from illicit activity.

According to BSCN: “Nigerian Authorities escalate pressure on Binance, demanding transaction history of top 100 users and settling tax debts. Tensions rise after detention of executives. This move underscores efforts to stabilize the naira amid recent devaluations.”

Daily Coin added:

Binance emphasized that while Nigeria is not currently among its top markets, its status as the largest African economy and fast-growing crypto industry underscore its potential.

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