Nigeria demands $10 billion in damages from Binance over cryptocurrency crackdown
Posted: March 1, 2024 12:07 PM Updated: March 1, 2024 12:08 PM
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The Nigerian government has reportedly demanded $10 billion from Binance, claiming the cryptocurrency exchange is profiting from illegal trading.
The Nigerian government has reportedly requested the equivalent of $10 billion from Binance amid heightened scrutiny of cryptocurrency exchanges and a devaluation of the country’s currency.
Bayo Onanuga, Special Advisor for Intelligence and Strategy to Nigerian President Bola Tinubu, told the BBC that Binance has been accused of profiting from what he sees as “illegal trading” at the expense of the country. exposed.
According to reports, Nigeria is currently investigating Binance. Zakari Mijinyawa, Head of Strategic Communications at the Office of the National Security Advisor, told Premium Times that the National Security Advisor, along with other law enforcement and security agencies, is conducting an inter-agency investigation into Binance’s operations in the foreign exchange market. I checked.
Nigeria criticizes cryptocurrency exchanges for Naira revival
Recent developments include the purported detention of a Binance executive by Nigerian authorities earlier this week. The exchange reportedly removed the Nigerian currency, the Naira, from its P2P services, further heightening tensions with Nigerian regulators.
Nigerian authorities arrested two senior Binance executives upon their arrival in the country, according to sources familiar with the matter recently cited by the Financial Times. Their passports were reportedly confiscated, but Binance has yet to issue a public statement on the incident.
The heightened scrutiny of cryptocurrency platforms in Nigeria follows the sharp devaluation of the country’s currency, the naira, which has led to inflation reaching nearly 30%, the highest level in nearly three decades.
In a recent press conference, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, expressed concern over the significant flow of funds through cryptocurrency exchanges, especially Binance Nigeria’s trading in 2023, which the government is struggling to properly account for. It was mentioned that it was worth $26 billion.
But it is unclear whether the request is part of negotiations to secure the release of the detained executives. In early February, Binance imposed limits on the selling price of Tether (USDT) on its P2P platform in Nigeria. In a blog aimed at Nigerian users, the exchange reiterated its commitment to working with local authorities to ensure compliance.
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Victor is the Managing Technology Editor/Writer at Metaverse Post and covers artificial intelligence, cryptography, data science, metaverse, and cybersecurity within the enterprise space. He boasts of five years of media and AI experience working at renowned media outlets such as VentureBeat, DatatechVibe, and Analytics India Magazine. Having worked as a media mentor at prestigious universities such as Oxford and USC, and holding a Master’s degree in Data Science and Analytics, Victor is committed to keeping up with new trends. He provides readers with the latest and most insightful stories from the world of technology and Web3.
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victor day
Victor is the Managing Technology Editor/Writer at Metaverse Post and covers artificial intelligence, cryptography, data science, metaverse, and cybersecurity within the enterprise space. He boasts of five years of media and AI experience working at renowned media outlets such as VentureBeat, DatatechVibe, and Analytics India Magazine. Having worked as a media mentor at prestigious universities such as Oxford and USC, and holding a Master’s degree in Data Science and Analytics, Victor is committed to keeping up with new trends. He provides readers with the latest and most insightful stories from the world of technology and Web3.