Binance Hit with $10 Billion Fine by Nigerian Government

Binance is grappling with a substantial penalty, following a massive $4.3 billion settlement with U.S. authorities, as agreed with the Department of Justice. In a significant development, the Nigerian government is levying a $10 billion fine against the cryptocurrency exchange Binance amidst an investigation into alleged manipulation of the foreign exchange rate concerning the naira, as confirmed by special adviser Bayo Onanuga in a BBC interview on March 1.

This action comes on the heels of the detention of two Binance executives who were in Nigeria to engage with the authorities, following the government’s announcement of intentions to prohibit the crypto entity’s operations within the country. Although the identities of the Binance delegates have been kept under wraps, it has been reported that one is American and the other British. Both were reportedly seeking transfer to their respective embassies.

According to an insider, law enforcement obtained a judicial warrant permitting the detention of these individuals for up to 12 days by the Nigerian government. This crackdown is in response to accusations against Binance for enabling unauthorized transactions and failing to account for $26 billion in financial movements. The Nigeria Securities and Exchange Commission (SEC) has also criticized the platform for operating without proper licensing and not adhering to regulatory mandates.

The Nigerian authorities have requested transaction records related to the naira from Binance for the past seven years. There’s also information from the Premium Times about a request to remove certain Nigerian data from Binance’s systems. Additionally, peer-to-peer (P2P) trading has been suspended on the exchange, leading to some users reporting difficulties in accessing Binance’s services.

A user shared with crypto.news their experience of trading naira for Tether’s USDT on P2P for social media services payments, only to have their access revoked shortly after. The user wished to remain unnamed, given the uncertain scope of Nigeria’s regulatory actions.

Moreover, other cryptocurrency and forex trading platforms, including Coinbase and Kraken, have been caught in Nigeria’s regulatory net, with internet service providers being directed to block these sites. Nonetheless, Coinbase is challenging this directive and has initiated an internal probe.

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