Business News Report
March 01, 2024

Nigeria Demands $10 Billion in Damages from Binance Amid Crypto Crackdown

In Brief

The Nigerian government has reportedly demanded $10 billion from Binance, alleging the crypto exchange of profiting from illegal transactions.

Nigeria Demands $10 Billion in Damages from Binance Amid Crypto Crackdown

The Nigerian government has reportedly requested a substantial sum of $10 billion from Binance amidst its intensified scrutiny of the cryptocurrency exchange and the devaluation of the nation’s local currency.

Bayo Onanuga, the special adviser on information and strategy to Nigeria’s president Bola Tinubu, disclosed in an interview with the BBC that Binance is accused of profiting from what is deemed as “illegal transactions” at the expense of the country.

Reports indicate that Nigeria is currently investigating Binance. Zakari Mijinyawa, head of Strategic Communication at the Office of the National Security Adviser, affirmed to Premium Times that the office, alongside other law enforcement and security agencies, is conducting an interagency probe into Binance’s operations within the foreign exchange market.

Nigeria Slams Crypto Exchanges to Boost Naira

Recent developments also involve the purported detention of Binance executives by Nigerian authorities earlier this week. Allegedly, the exchange removed Nigeria’s currency Naira, from its peer-to-peer service, further heightening tensions with Nigerian regulators.

Recently, sources familiar with the matter —- as cited by the Financial Times, revealed that Nigerian authorities arrested two senior Binance executives upon their arrival in Nigeria. Their passports were reportedly seized, although Binance has yet to issue any public statements regarding the incident.

The intensified scrutiny on cryptocurrency platforms in Nigeria follows the drastic devaluation of Nigerian currency Naira, contributing to inflation reaching nearly 30%, its highest level in nearly three decades.

During a recent press conference, Olayemi Cardoso, Nigeria’s central bank governor, voiced concerns over the significant fund flows through crypto exchanges, notably referencing Binance Nigeria’s transaction volume of $26 billion in 2023, which the government struggles to identify adequately.

However, it remains unclear if this request is part of negotiations to secure the release of the detained executives. Earlier in February, Binance imposed restrictions on the selling price of Tether (USDT) on its peer-to-peer platform in Nigeria. In a blog addressed to Nigerian users, the exchange reiterated its commitment to collaborating with local authorities to ensure compliance with regulations.

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About The Author

Victor is a Managing Tech Editor/Writer at Metaverse Post and covers artificial intelligence, crypto, data science, metaverse and cybersecurity within the enterprise realm. He boasts half a decade of media and AI experience working at well-known media outlets such as VentureBeat, DatatechVibe and Analytics India Magazine. Being a Media Mentor at prestigious universities including the Oxford and USC and with a Master's degree in data science and analytics, Victor is deeply committed to staying abreast of emerging trends. He offers readers the latest and most insightful narratives from the Tech and Web3 landscape.

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Victor Dey
Victor Dey

Victor is a Managing Tech Editor/Writer at Metaverse Post and covers artificial intelligence, crypto, data science, metaverse and cybersecurity within the enterprise realm. He boasts half a decade of media and AI experience working at well-known media outlets such as VentureBeat, DatatechVibe and Analytics India Magazine. Being a Media Mentor at prestigious universities including the Oxford and USC and with a Master's degree in data science and analytics, Victor is deeply committed to staying abreast of emerging trends. He offers readers the latest and most insightful narratives from the Tech and Web3 landscape.

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