Binance CEO summoned by Nigerian House of Representatives committee for alleged financial crimes
Binance looks set to become entangled in yet another legal battle. The Nigerian House of Representatives Financial Crimes Committee has summoned Richard Teng, CEO of Binance Holding Limited, on charges of terrorist financing and money laundering.
Committee’s ultimatum and serious claims
PUNCH reporter Tope Omogbolagun reports that committee chairman Ginger Onwusibe has issued a stern seven-day ultimatum to Binance Holdings LTD., demanding that it appear before the committee by March 4, 2024. Onwusibe said she was concerned about the serious allegations. She is against Binance for its terrorist financing, money laundering, and tax evasion.
Chairman Onwusibe expressed concern, saying, “The charges filed against Binance, including terrorist financing, money laundering, and tax evasion, are sufficiently serious.” “At this critical time, we need every dollar from our tax dollars and we need to block information leaks and channels for terrorist financing.”
Repeat Summon
The committee had previously summoned Richard Teng, CEO of Binance Holding Limited, through a letter dated December 12, 2023. Despite multiple invitations, Teng reportedly refused to appear before the committee to address concerns related to Binance’s business operations in Nigeria.
The chairman warned that if Binance Holdings fails to comply with the summons, the committee will not hesitate to invoke its constitutional powers to take appropriate action.
Concerns about tax evasion and exploitation
The committee’s concerns go beyond allegations of terrorist financing and money laundering. Chairman Onwsibe raised concerns about Binance operating in Nigeria without paying taxes and lacking a physical office to handle customer complaints.
Chairman Onwusibe told Binance, “A company with over 10 million Nigerians on your platform, without paying taxes and without having a physical office where Nigerians can lodge complaints when they experience difficulties with your service. “It cannot be operated,” he warned firmly.
He also said, “It is also our duty to do all we can to protect Nigerian investors from predatory companies and no amount of interference or manipulation can stop us.”
Chairman Onwusibe emphasized the Commission’s commitment to eradicating financial crimes and that the Commission would not resist using the constitutional powers granted to it to protect the financial health of Nigerian citizens and the nation.
What are your future plans?
As the House of Representatives Financial Crimes Committee intensifies its investigation into Binance, the global cryptocurrency community is watching closely to see whether Binance can be trusted anymore.
With former CEO Chnagpeng Zhao admitting fraud in a lawsuit against the US SEC and still awaiting final sentencing, it is exciting to see what new revelations this legal summons and proceedings against Binance Holdings will lead to.