Binance calls ‘Binance Nigeria Limited’ a scam

Binance has recently issued a cease and desist notice to an unauthorized entity named Binance Nigeria Limited, as confirmed by CEO Changpeng Zhao.

The announcement came after the Nigerian Securities and Exchange Commission (SEC) released a circular on June 9, declaring the illegality of Binance Nigeria Limited’s operations within the country.

Binance CEO Changpeng Zhao took to Twitter on June 18 to share the development. Reports suggest that a spokesperson from Binance promptly responded to the SEC’s circular, asserting that the mentioned entity has no affiliation with the exchange.

The spokesperson further emphasized Binance’s commitment to seeking clarity from the Nigerian SEC and working collaboratively to address the situation.

While Binance denies any association with Binance Nigeria Limited, the company faces a separate lawsuit filed by the United States Securities and Exchange Commission (SEC).

The US SEC has brought 13 charges against Binance entities and CEO Changpeng Zhao. These charges include operating as an unregistered exchange, broker-dealer, and clearing agency and misrepresenting trading controls.

The US regulator further alleges that despite earning $11.6 billion from US customers, Binance and Zhao failed to comply with registration requirements.

Meanwhile, Nigeria has emerged as one of the leading countries in the region with a keen interest in cryptocurrencies. In fact, the Nigerian government has taken notable steps towards adopting blockchain technology, including creating a Central Bank Digital Currency (CBDC) to facilitate secure online payments.