Binance Faces $10 Billion Fine as Nigeria Investigates Foreign Exchange Manipulation
In a recent interview with the BBC, special adviser Bayo Onanuga confirmed that Nigeria’s government is imposing a $10 billion sanction on crypto exchange Binance. This comes as the African country investigates suspected foreign exchange rate manipulation tied to the naira currency. The fine follows the arrest of two company executives who were sent to negotiate with authorities after plans to ban Binance were disclosed.
Arrest of Binance Representatives
- The identities of the Binance representatives have not been disclosed by local officials.
- Reports suggest that one of them is American and the other is British.
- Both negotiators requested to be moved to their respective embassies.
A source close to the matter revealed that enforcement agencies obtained a court warrant allowing Nigeria’s government to hold the two individuals for up to 12 days.
Binance’s Alleged Wrongdoings
The crackdown on Binance was triggered by government accusations that the crypto exchange facilitated illicit transactions and could not account for $26 billion in money flows. Additionally, Nigeria’s Securities and Exchange Commission (SEC) claimed that Binance has been operating without a license and refusing to comply with regulatory requirements.
Authorities have demanded naira-related transaction data from Binance covering the past seven years. They also reportedly requested the deletion of specific Nigerian information from the trading venue. As a result, P2P trading was disabled on the platform, and some users have reported being unable to access Binance facilities.
One user shared their experience with crypto.news, stating that they had just traded naira for Tether’s USDT on P2P to pay for social media services before their login was revoked. The trader chose to remain anonymous due to the uncertainty surrounding Nigeria’s clampdown.
Ban on Other Crypto-Forex Trading Sites
In addition to Binance, other crypto-forex trading sites like Coinbase and Kraken also faced a ban in Nigeria. Internet service providers were instructed to block access to these platforms. However, Coinbase is pushing back on the decision and conducting internal investigations.
Hot Take: Nigeria Cracks Down on Crypto Exchanges 🛡️
Nigeria’s government is taking a strong stance against crypto exchanges, with Binance being hit hard by a $10 billion fine. The country is investigating foreign exchange rate manipulation linked to the naira currency, and Binance has been accused of facilitating illicit transactions and failing to account for billions of dollars in money flows.
The arrest of two Binance executives further underscores the severity of the situation. As a result, P2P trading has been disabled on the platform, and users have reported difficulties accessing Binance facilities.
This crackdown extends beyond Binance, as other major players like Coinbase and Kraken have also faced a ban in Nigeria. However, Coinbase is fighting back and conducting internal investigations.
As Nigeria tightens its grip on crypto exchanges, it remains to be seen how these platforms will respond and whether they can regain access to the Nigerian market in the future.
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