Binance Reveals Extensive Cooperation with Nigerian Authorities Amid Turmoil
In a blog post on March 13, leading cryptocurrency exchange Binance shed light on its substantial cooperation with Nigerian authorities. This is in response to the recent turmoil surrounding its operations in the country.
The exchange’s disclosure comes amidst allegations of currency manipulation and calls for a ban on crypto exchanges by the Nigerian government.
Key points:
- Binance held two full-day training sessions with Economic and Financial Crimes Commission (EFCC) officials in August 2023.
- The exchange responded to 626 information requests from Nigerian law enforcement agencies between June 2020 and February 2024.
- Nigeria ranks second in global crypto adoption as of 2023.
- Two Binance senior executives were detained on Feb. 26 amid the crackdown.
- Binance has delisted all Nigerian Naira trading pairs from its peer-to-peer service.
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According to Binance, the relationship with Nigerian authorities was markedly different just a few months ago. In August 2023, the exchange held two full-day meetings with EFCC representatives in Abuja and Lagos, where more than 30 investigators were present.
The training focused on instructing investigators on tracing money on the blockchain using both public and commercial tools.
Binance details cooperation with Nigerian authority
In addition to the training sessions, Binance claims to have been highly responsive to information requests from Nigerian law enforcement agencies.
Between June 2020 and February 2024, the exchange responded to 626 requests from the Nigeria Police Force, EFCC, and INTERPOL Nigeria, with an average response time of 37.4 hours.
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The blog post serves as Binance’s response to allegations made by the Nigerian government. Nigeria accused the exchange of manipulating the national currency, the Nigerian naira (NGN), and contributing to the country’s economic difficulties.
The Central Bank of Nigeria (CBN) has also raised concerns about suspicious financial flows through the exchange. CBN estimated that $26 billion passed through Binance Nigeria from unknown users and sources in 2023.
