Binance $10B retribution – Nigeria’s escalating crackdown on cryptocurrency exchange Binance reached a new level with a demand for $10 billion in retribution. The government alleges Binance profited from illegal activities within the country, contributing to the ongoing devaluation of its currency, the naira. This announcement was made by Bayo Onanuga, special adviser on information and strategy to President Bola Tinubu, during a BBC interview Friday morning.
The move intensifies existing tensions between Binance and the Nigerian government. Recently, access to Binance’s website within Nigeria was restricted as authorities investigated accusations that the platform fueled currency speculation. Tensions stem from the naira’s significant decline in value, a trend some in the government attribute to crypto trading platforms.
Onanuga, a prominent critic of Binance, asserts that the exchange operates illegally within Nigeria, lacking proper registration. He further alleges the platform was used to manipulate dollar-naira exchange rates, undermining the stability of the nation’s economy. Onanuga indicated that Binance is currently cooperating with the government’s investigation.
Also Read: Nigerian Government Detains Binance Executives Amidst Crypto Crackdown
This demand for restitution comes on the heels of the Office of the National Security Adviser (ONSA) detaining two Binance executives earlier this week. The Nigerian government maintains that Binance’s activities have contributed to economic instability through speculative practices.
In a statement on Channels Television’s Politics Today, Onanuga declared, “If we don’t clamp down on Binance, Binance will destroy the economy of this country… We have saboteurs… look at what Binance is doing to our economy.”
Binance disputes these allegations. In a recent email to customers, the company denied any role in determining foreign exchange rates, stating, “It is important to note that foreign exchange rates are influenced by various complex factors, which Binance does not influence.” Binance reiterated its commitment to collaborating with Nigerian authorities to ensure compliance with regulations.
Central Bank of Nigeria governor, Olayemi Cardoso, highlighted the scope of the issue, revealing that approximately $26 billion flowed through Binance Nigeria in a single year. Cardoso confirmed an ongoing investigation with the involvement of multiple agencies, including the Police, the Economic and Financial Crimes Commission, and the ONSA.
The Nigerian government’s actions against Binance echo a broader international trend of increased scrutiny towards cryptocurrency exchanges. Binance recently paid a hefty $4.3 billion penalty to US authorities after pleading guilty to charges related to money laundering and sanctions violations. Additionally, in 2022, the Dutch central bank imposed a fine of over €3 million on the platform for offering services without the necessary registrations.
