Nigeria Demands $10 Billion From Binance: BBC
Nigeria has reportedly demanded cryptocurrency exchange Binance pay $10 billion amid alleged illegal transactions that harmed the country’s economy. The claim comes amid an ongoing crackdown and investigation into the trading platform.
Key Context:
- Binance is accused of setting an unofficial exchange rate in Nigeria, spurring currency issues.
- The platform is said to enable $26 billion in untraceable outflows as the naira crumbled.
- Executives detained earlier this week, passports taken.
- The government claims illegal activity; large fines are planned but not finalized.
A government adviser told the BBC on Friday that Nigeria is demanding the massive penalty due to Binance’s unauthorized operations, including acting as a central exchange rate setter.
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Nigeria govt adviser claims his comments were misrepresented
However, the adviser, Bayo Onanuga, later claimed his comments were misrepresented. He told another outlet the fine amount was not definitive and the government may impose heavy fines depending on the still ongoing investigation.
“I never said Binance had been informed about the fines or that it would definitely be $10 billion. I only said the amount may be imposed, which is because nothing has been finalized yet,” Onanuga said.
Nonetheless, the statements underscore the intensifying pressure Nigeria is placing on the crypto sector as it grapples with a rapidly declining currency and strict capital controls.
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The government alleges Binance facilitated billions in untraceable money transfers that evaded oversight and harmed Nigeria’s foreign exchange market.
Two of the exchange’s executives were even detained earlier this week after traveling to the country to reportedly discuss tensions.
Binance suspended trades between the naira and major cryptocurrencies on its platform amid the escalating troubles.
Nigeria’s demands show the risks for crypto businesses that operate across multiple jurisdictions without always coordinating with local regulators.
