The Nigerian government has recently accused Binance of manipulating exchange rates and serving as a loophole for illegal money laundering. Binance has responded today with a statement, emphasizing that it has always operated in accordance with the law and has had substantial cooperation with the Nigerian government in the past.
In the previous article titled “Nigeria Demands User Data and Trading Records from Binance’s Top 100 Users! Negotiations Between Nigeria and Binance at an Impasse,” the Nigerian government had summoned Binance’s CEO to attend a hearing, stating that the era of exploitation has ended and that they will hold Binance accountable for money laundering and terrorist financing.
Last month, the Nigerian government banned Binance, Coinbase, and other exchanges, accusing Binance of “manipulating exchange rates” and causing a 70% depreciation of the Nigerian Naira. Two senior Binance executives who went to Nigeria for negotiations were even detained by the government.
Binance emphasizes that it has always operated in accordance with the law. In response to the series of accusations from Nigeria, Binance issued a detailed response today. They pointed out that they have had substantial cooperation with the Nigerian government in the past. They provided the following examples:
1. In August 2023, Binance held two meetings with officials from the Economic and Financial Crimes Commission (EFCC) of Nigeria, with over 30 investigators in attendance each time.
2. Binance has provided training to Nigerian investigators, including teaching them how to trace funds on the blockchain using public and commercial tools. Both meetings received positive feedback from Nigerian investigators, and Nigerian authorities expressed a strong interest in continuing this form of cooperation.
3. From June 2020 to February 2024, Binance’s Financial Crime Compliance team responded to 626 information requests from Nigerian law enforcement agencies or investigations related to Nigeria. The average response time from submission to resolution was approximately 37.4 hours. Binance has assisted investigations from units such as the Nigerian Police Force, EFCC, and Interpol stationed in Nigeria.
4. In January 2022, due to money laundering issues, Binance restricted 281 accounts of Nigerian residents and extensively cooperated with Nigerian authorities to protect users from illegal activities.
Binance emphasizes that complying with the regulations of the countries in which it operates is its top priority and will cooperate with Nigerian law enforcement agencies to promote responsible growth.
Regarding the two Binance executives detained in Nigeria (Nadeem Anjarwalla, Binance’s Africa Regional Manager, and Tigran Gambaryan, Head of Binance’s Financial Crime Compliance Department), their detention period was supposed to end this Tuesday. However, Nigerian authorities are seeking an extension of their detention. According to Coindesk, the court held a hearing on Wednesday to consider the extension but did not formally extend the detention period. Another extension hearing is scheduled for the 20th, and until then, the two individuals will remain detained in Nigeria.
Binance states that it will cooperate with Nigerian authorities to bring the detained executives back home.
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