Jai Sahu
The Nigerian government has imposed a substantial fine of $10 billion on Binance as part of its efforts to stabilize the country’s local currency.
Bayo Onanuga, special adviser on information and strategy to President Bola Tinubu, disclosed this fine in an interview with the BBC, as reported by Premium Times on Friday.
According to Onanuga, Binance is accused of engaging in “illegal transactions” in Nigeria, causing significant financial losses to the nation.
The Nigerian government’s decision comes after the Office of the National Security Adviser (ONSA) confirmed an ongoing investigation into Binance and other cryptocurrency platforms.
Nigeria’s ONSA Confirms Investigation into Binance
Two executives of Binance were detained by the Nigerian government earlier this week when they flew into the country for negotiations. However, talks ended without resolution as Binance officials declined to meet certain government demands.
The executives face accusations of running a multibillion-dollar business without proper registrations and documentation.
Nigerian authorities demanded transaction data involving the Nigerian Naira on Binance’s platform for the past seven years and the removal of certain Nigeria-related data from the platform. However, Binance executives insisted on being taken to their respective countries’ embassies before complying.
According to Onanuga, Binance, not registered in Nigeria, is alleged to have facilitated arbitrage trading of the dollar-naira rates on its platform, impacting negatively on the local currency’s value.
Binance has reportedly cooperated with the Nigerian government
Binance recently introduced a price cap for Tether (USDT) tokens on its peer-to-peer platform to comply with local regulatory requirements, restricting traders from selling USDT above a set cap of 1,802 naira per USDT.
However, the Nigerian government is seeking retribution of at least $10 billion from Binance.
The government’s actions against Binance and other crypto firms are motivated by concerns over forex market manipulation and illicit fund movements, believed to have weakened the naira.
In September 2023, Nigeria’s Securities and Exchange Commission (SEC) declared Binance Nigeria Limited illegal, citing lack of registration and regulation by the commission.
Binance previously pleaded guilty to criminal money laundering charges brought by the U.S. Department of Justice, agreeing to a $4.3 billion settlement. Binance’s founder and CEO, Changpeng Zhao (CZ), also pleaded guilty and agreed to step down from his position. CZ’s criminal trial has been postponed to April 30 by a U.S. court.