Binance CEO Given 7 Days To Address Allegations Of Terrorist Financing In Nigeria

Nigeria has joined the global crackdown on alleged money laundering and terrorist financing within the crypto industry, with the House of Representatives Committee on Financial Crimes summoning Binance chief executive Richard Teng.

Nigerian Committee Issues Ultimatum To Binance

According to a local media report, the committee has given Binance and its CEO a seven-day ultimatum to appear before them following allegations of involvement in financial crimes. Binance, the world’s largest cryptocurrency exchange, has been flagged by the Central Bank of Nigeria for its alleged illicit activities.

Ginger Onwusibe, the Chairman of the Financial Crimes Committee, expressed concern over Binance’s refusal to respond to previous invitations. Onwusibe sternly warned that the committee would exercise its constitutional powers if Binance failed to comply with the summons.

Per the report, the Committee seeks to hold Binance accountable for its alleged violation of Nigerian business and financial operations laws. Ginger Onwusibe further stated:

We also have to protect and defend the country’s finances, especially now that the country is nose-diving into recession. The allegations of terrorism financing, money laundering, and tax evasion amongst others leveled against Binance are damning enough.

Committee Demands Tax Compliance And Accountability

The committee had previously summoned Binance’s Managing Director, citing allegations of terrorism financing, money laundering, and tax evasion, among other offenses. Onwusibe emphasized the committee’s determination to combat financial crimes and protect Nigerian investors from predatory firms. 

The report notes that Nigeria is facing economic challenges and recession, so the committee aims to “safeguard the country’s finances and prevent channels that could potentially finance illegal activities.” 

Onwusibe highlighted the need for foreign companies operating in Nigeria, like Binance, to pay taxes and establish a physical office where Nigerian users can address their concerns. 

The committee stressed that “exploitation” of Nigerian investors will “no longer be tolerated,” and all offenders will be held accountable. Onwusibe concluded: 

It is also our duty to do everything in our power to protect Nigerian investors from predatory firms, and no distraction and manipulation can stop us. You cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with youservicer . The era of exploitation is over and all culprits must be held accountable. 

It is important to highlight that Nigerian authorities’ recent action against Binance is part of a series of measures taken in the past week. 

As Bitcoinist reported on Friday, Nigeria has slapped the world’s largest exchange with a $10 billion fine, claiming the platform contributed significantly to the devaluation of the Nigerian currency.

Featured image from Shutterstock, chart from TradingView.com