- Nigerian authorities have summoned Binance’s CEO to appear before its financial crimes committee.
- The government has issued an ultimatum to Binance’s Richard Teng.
- Despite repeated invitations, Binance has yet to appear before Nigerian authorities regarding its allegations.
Binance troubles in Nigeria take yet another turn. After authorities blocked the exchange’s website, shut down its P2P marketplace, and detained two of its executives, the government is now looking to summon Binance’s CEO, Richard Teng, over allegations of terror financing and money laundering.
Nigeria Issues Ultimatum to Binance
Local news outlet Punch reported that Nigeria’s House of Representatives Committee on Financial Crimes has issued a seven-day ultimatum to Binance’s CEO to appear before the committee on or before Monday, March 4.
The regulator’s summoning follows recent allegations of suspicious funds flowing through the exchange’s Nigerian arm in 2023. Central Bank of Nigeria Governor Olayemi Cardoso highlighted that $26 billion had passed through Nigeria via Binance in 2023 from unidentified sources and users.
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Chairman of the Committee on Financial Crimes, Ginger Onwusibe, warned that the committee will invoke its constitutional powers if Binance’s CEO, Richard Teng, refuses to appear before the court. Despite repeated invitations, Teng has been unwilling to address the Nigerian government’s concerns regarding compliance with its business and financial laws.
Onwusibe emphasized the committee’s commitment to fighting financial crimes, citing the constitutional mandate to protect Nigerians and the country’s finances.
The allegations of terrorism financing, money laundering, and tax evasion, amongst others, leveled against Binance are damning enough. At this material time, we need all the tax dollars to block the leaks and channels to financing terror.” he added.
Onwusibe concluded by urging Binance to fulfill its obligations, including paying taxes and establishing a physical office for citizen complaints.
On the Flipside
- Outside Nigeria, Binance also faces a $4.3 billion fine in the U.S. for money laundering charges.
- An aide to the Nigerian President suggested that the Nigerian government was eyeing fines exceeding $10 billion from Binance. However, the adviser later retracted his statement, claiming he was misquoted.
Why This Matters
Binance has been under intense scrutiny over the last year from regulators worldwide. Its regulatory woes in Nigeria could further complicate its operations and raise questions about its compliance.
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