Nigeria Demands $10 Billion from Crypto Firm Binance

The Nigerian government has made significant demands from cryptocurrency giant Binance, claiming almost $10 billion in compensation. This move comes amidst allegations of currency manipulation and illicit activities, leading to the devaluation of the nation’s currency.

According to government officials, Binance executives were arrested earlier in the week. The Nigerian government asserts that Binance manipulated foreign exchange rates, contributing to a significant depreciation of the Naira.

Nigeria, as Africa’s largest economy and a significant player in the global cryptocurrency market, is deeply concerned about the impact of such activities on its economy. Cryptocurrency transactions in Nigeria amounted to approximately 12% of the country’s GDP in the year leading up to June 2023.

While cryptocurrency transactions are not illegal in Nigeria, firms operating in the country are required to register. Binance, however, allegedly failed to comply with these regulations.

President Bola Tinubu’s administration, which came into office last year, moved away from pegging the Naira to the dollar, allowing market forces to determine exchange rates. However, recent fluctuations were deemed abnormal, with government officials attributing them to activities on the Binance platform.

The government’s actions against Binance are part of broader efforts to stabilize the national currency and curb illicit financial activities. High inflation and soaring commodity prices have exacerbated the cost of living crisis in Nigeria, leading to protests in recent weeks.

Binance’s troubles in Nigeria intensified following its settlement with the U.S. Department of Justice over money laundering and terrorism financing charges. The Nigerian House of Representatives Committee on Financial Crimes issued an ultimatum to Binance CEO Richard Teng to appear before the committee.

The Nigerian government’s crackdown on cryptocurrency exchanges, including the detention of Binance executives, underscores its determination to address financial crimes and protect the nation’s economy.

Binance has yet to respond to these latest developments, as the situation continues to unfold in Nigeria’s rapidly evolving cryptocurrency landscape.