The Nigerian government recently accused Binance of manipulating exchange rates and being a loophole for illegal money laundering. Binance issued a statement today in response, emphasizing that it has always operated in accordance with the law and has had substantial cooperation with the Nigerian government in the past.
Background:
Summoning of Binance CEO for a hearing! Nigeria: The era of exploitation is over, and money laundering and terrorist financing responsibilities will be pursued.
Last month, the Nigerian government banned Binance, Coinbase, and other exchanges, accusing Binance of “manipulating exchange rates” which caused a 70% devaluation of the Nigerian currency, Naira. Two Binance executives who went to Nigeria for negotiations were even detained by the government.
Binance emphasizes adherence to the law
In response to the series of accusations from Nigeria, Binance issued a detailed response today, emphasizing that it has always operated in accordance with the law and pointing out that it has had substantial cooperation with the Nigerian government in the past. The official examples provided are as follows:
1. In August 2023, Binance held two meetings with officials from the Nigerian Economic and Financial Crimes Commission (EFCC), with more than 30 investigators attending each meeting.
2. Binance provided training to Nigerian investigators, including teaching them how to track funds on the blockchain using public and commercial tools. Both meetings received positive feedback from Nigerian investigators, and Nigerian authorities expressed strong interest in continuing this form of cooperation.
3. From June 2020 to February 2024, Binance’s Financial Crime Compliance team responded to 626 information requests from Nigerian law enforcement agencies or investigations related to Nigeria. The average time from submission to resolution was about 37.4 hours. Binance assisted investigations by units such as the Nigerian Police Force, EFCC, and Interpol Nigeria.
4. In January 2022, due to money laundering issues, Binance restricted 281 accounts of Nigerian residents and extensively cooperated with Nigerian authorities to protect users from illegal activities.
Binance emphasizes that complying with the regulations of the operating country is its top priority and will cooperate with Nigerian law enforcement agencies to promote responsible growth.
Nigeria continues to detain Binance executives
As for the two Binance executives detained in Nigeria (Nadeem Anjarwalla, Binance’s Regional Manager for Africa, and Tigran Gambaryan, Head of Binance’s Financial Crime Compliance Department), their detention period was originally set to expire this Tuesday. However, Nigerian authorities are seeking an extension of their detention. According to Coindesk, the court held a hearing for the extension on Wednesday, but did not formally extend the detention period. Instead, another hearing for the extension is scheduled for the 20th. Until then, the two individuals will continue to be detained in Nigeria.
Binance stated that it will cooperate with Nigerian authorities to bring the Binance executives back home.
Related reports:
Demanding Binance to pay $10 billion! Nigeria accuses Binance of manipulating exchange rates, causing a 70% devaluation of the Naira and a severe blow to the economy.
Nigeria bans Binance, Coinbase, and other cryptocurrency exchanges: Alleged manipulation of the Naira exchange rate and a loophole for illegal money laundering.
Nigerian banks to launch compliant “cNGN stablecoin”, to be recognized as legal tender in 2024.