Breaking: Nigerian Authorities Detain Senior Binance Executives

Confidence UbaniFebruary 28, 20241 Mins read297

Following Nigeria’s recent efforts to regulate cryptocurrency exchanges and curb speculation on the naira, two senior executives at Binance have been detained in Nigeria, with their passports seized.

According to a report from Financial Times, the executives flew to Nigeria last week following the government’s decision to ban several cryptocurrency trading websites but were detained by the office of the national security adviser.

An X user, @aanuadeoye, alleged that the Nigerian authorities are demanding the list of Nigerian subscribers on the cryptocurrency platform since its inception.

Binance has refrained from commenting on the situation. However, after the detention of its executives, the platform halted trading of the naira against bitcoin and tether digital coins.

Recall that Nigeria’s central bank governor, Olayemi Cardoso, raised the alarm over funds flowing through crypto exchanges and cited concerns about illicit flows and suspicious transactions. He mentioned Binance, revealing that $26 billion had passed through Binance Nigeria in the past year from sources and users that cannot be adequately identified.

Cardoso stated, “We are concerned that certain practices go on that indicate illicit flows going through a number of these entities [crypto exchange platforms]and suspicious flows at best.”

The government’s anti-corruption agency, police, and national security adviser are coordinating an investigation into cryptocurrency exchanges, demanding a list of Binance’s Nigerian users since its inception. It is unclear whether the said detective’s arrest is connected to the nation’s desperate efforts to control currency speculation.

West Africa Weekly reported telecommunication companies were also ordered to block access to major cryptocurrency exchanges, including Binance, Coinbase, and OKX. The Federal Government of Nigeria allegedly issued these stringent orders to revive the naira and address currency speculation.

As debates continue about Binance’s influence on the naira, concerns about criminal activities, currency speculation, and money laundering exploiting these platforms have led to desperate measures. Bayo Onanuga, Special Adviser on Information and Strategy to President Tinubu, recommended a ban on all cryptocurrency exchange platforms.

He said this in response to recent speculation regarding Binance’s alleged collaboration with the Nigerian government to control trading on its platform.

The situation remains fluid, with the detention of Binance executives marking a significant development in Nigeria’s evolving stance on cryptocurrency regulation.

This story is developing….