Nigeria Seeks $10 Billion from Binance Amid Growing Crypto Enforcement Actions

The Nigerian government is reportedly pursuing a significant claim of $10 billion in damages from Binance as it intensifies its examination of the crypto space. cryptocurrency This includes scrutiny over the exchange and the troubling decline of the nation's currency value.

Bayo Onanuga, a special adviser on information and strategy for Nigeria's president Bola Tinubu, revealed in a statement that Binance is being accused of benefiting from transactions considered unlawful, to the detriment of Nigeria. interview with the BBC Sources indicate that Nigeria is actively looking into the operations of Binance. Zakari Mijinyawa, who heads Strategic Communication at the National Security Adviser’s office, confirmed that their office, along with other security and law enforcement agencies, is conducting a thorough investigation into Binance’s activities in the foreign exchange market.

Nigeria Targets Crypto Platforms to Support Naira’s Recovery Premium Times In recent news, it has been reported that Nigerian authorities took two senior Binance officials into custody earlier this week. This adds tension to the ongoing saga, especially after claims emerged that the platform had removed its support for Nigeria’s currency, Naira, from its peer-to-peer services.

According to sources quoted by the Financial Times, Nigerian officials detained two senior Binance leaders upon their arrival, confiscating their passports. Binance has not yet made any public remarks regarding this troubling situation.

The increasing scrutiny on cryptocurrency exchanges in Nigeria coincides with the significant depreciation of the Naira, which has contributed to soaring inflation rates nearing 30%, marking the highest level in almost thirty years.

In a recent press briefing, Olayemi Cardoso, the governor of Nigeria’s central bank, expressed alarm over the massive capital flows through crypto platforms, highlighting that Binance Nigeria reportedly handled transactions worth an astounding $26 billion in 2023, a figure that raises regulatory concerns.

It remains to be seen whether this hefty demand for financial compensation is linked to negotiations for the release of the detained executives. Earlier this February, Binance implemented price restrictions on Tether (USDT) trades on its peer-to-peer platform in Nigeria. They also reaffirmed their commitment to cooperating with Nigerian authorities in a blog aimed at local users.

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Victor serves as a Managing Tech Editor/Writer at Metaverse Post, covering a range of topics including artificial intelligence, cryptocurrencies, data science, metaverse developments, and cybersecurity in the enterprise sector. With five years of experience in media and AI journalism, he has worked with renowned platforms like VentureBeat, DatatechVibe, and Analytics India Magazine. As a Media Mentor at prestigious institutions including Oxford and USC, and equipped with a Master's degree in data science and analytics, Victor remains dedicated to keeping up with the latest trends.