Binance undergoes official Nigerian inquiry
Binance Under Investigation by Nigerian Government Over Alleged Economic Sabotage
In a significant development, the Nigerian government has launched an investigation into the activities of global cryptocurrency exchange Binance within the country's borders. The investigation, confirmed by a statement from Premium Times, has been initiated by the Office of the National Security Adviser (ONSA).
The allegations against Binance are serious, with the Nigerian government accusing the exchange of tax evasion, money laundering, economic sabotage amounting to $81 billion, and operating without a license. These allegations have led to three separate legal cases against Binance in Nigeria.
The investigation centres around Binance's alleged manipulation of the foreign exchange market and its unlicensed status. The federal government has reportedly directed telecommunications service providers to restrict access to cryptocurrency exchanges operating within the country, and banks have frozen accounts linked to Binance transactions. As a result, Nigerian users face suspended P2P services in the local currency due to government crackdowns.
However, progress in these cases has been slow and problematic, with court delays, issues in the service of complaints, and a lack of recent movement in the money laundering case. The tax evasion trial has been postponed to October 14, 2025, and the economic sabotage case remains in limbo pending court rulings on procedural disputes.
Last week, Binance placed restrictions on purchasing USDT using Nigeria's currency, removing most "Buy" adverts on its peer-to-peer marketplace while keeping "Sell" ads. Binance confirmed in an email to its users that its website and other major crypto exchanges were not accessible to Nigerian users.
Binance officials were arrested when they came into Nigeria on the government's invitation, as confirmed by Bayo Onanuga to the BBC. The Nigerian government alleges that Binance's actions directly affected the Nigerian economy and needs Binance to pay up to $10 billion in reparations and damages for sabotaging the economy.
Binance is in contact with regulators and policymakers discussing "managing the evolving landscape of cryptocurrency" in Nigeria. The investigation is ongoing, as no further details have been disclosed by the ONSA. Despite this, Binance officials have maintained that they are committed to working with the Nigerian authorities to address any concerns and ensure compliance with local regulations.
It is important to note that Binance operates on a global scale and is a significant player in the cryptocurrency market. The outcome of this investigation could have far-reaching implications for the regulatory landscape of cryptocurrency exchanges not only in Nigeria but globally.
[1] Sources: Premium Times, The Peoples Gazette, The Coin Republic [2] Sources: Binance email to users, Bayo Onanuga, Office of the National Security Adviser (ONSA) of Nigeria, Zakari Mijinyawa
- The Office of the National Security Adviser (ONSA) in Nigeria is investigating Binance, a global cryptocurrency exchange, for alleged economic sabotage within the country.
- Binance is accused of tax evasion, money laundering, economic sabotage amounting to $81 billion, and operating without a license in Nigeria.
- The investigation focuses on Binance's manipulation of the foreign exchange market and its unlicensed status, leading to restrictions on access to cryptocurrency exchanges for Nigerian users.
- Court delays, issues in serving complaints, and lack of movement in the money laundering case have slowed progress in the legal cases against Binance in Nigeria.
- Binance officials were arrested upon arrival in Nigeria and are required to pay up to $10 billion in reparations and damages for alleged economic sabotage.
- Binance is in dialogue with Nigerian regulators and policymakers to discuss the evolving landscape of cryptocurrency in the country and ensure compliance with local regulations.
- The outcome of this investigation could significantly impact the regulatory landscape of cryptocurrency exchanges not only in Nigeria but also globally, given Binance's status as a prominent player in the digital assets market.
