Binance CEO Accuses Nigeria of Bribery, Misuse of Power in Crypto Crackdown

Richard Teng, the CEO of Binance, didn’t hold back when he criticized Nigerian authorities, accusing them of unfair treatment and wielding power unjustly against cryptocurrency exchange leaders.

He particularly highlighted the case of Tigran Gambaryan, who is currently detained, emphasizing the significant impact on the business community, especially following Gambaryan’s arrest alongside Nadeem Anjarwalla, head of Binance Africa.

Nigeria’s Rift With Crypto

This clash stems from the Securities and Exchange Commission (SEC) regulations introduced in 2022, aimed at regulating crypto exchanges within Nigeria. Despite Binance’s proactive efforts to seek guidance, they’ve been met with silence from the regulatory body. Additionally, Binance points out that no Virtual Asset Service Provider (VASP) has obtained licensing under these regulations to date.

Allegations and Counterclaims

During discussions with Nigerian officials in early 2024, Binance claims they were blindsided by a demand for a substantial cryptocurrency payment to settle unspecified allegations. Nigeria swiftly rebuffed these bribery allegations, dismissing them as diversionary tactics aimed at deflecting attention away from Binance’s operations.

Rabiu Ibrahim, spokesperson for Nigeria’s Information Ministry, vehemently refuted Binance’s bribery claims, labeling them as baseless and part of a broader strategy to shift focus. He portrayed these allegations as a calculated move by Binance to draw attention away from its activities.

The Nigerian government firmly denied any involvement in bribery attempts, accusing Binance of fabricating stories and orchestrating media campaigns to salvage its reputation amidst ongoing legal battles across multiple jurisdictions.

Cryptocurrency Scrutiny in Nigeria

This dispute unfolds against the backdrop of Nigeria’s heightened scrutiny of cryptocurrencies, driven in part by concerns over the depreciation of the local currency, the naira. Factors such as adjustments in foreign exchange controls and increased volatility overseen by Nigerian authorities have contributed to this scrutiny.

The SEC took a significant step by banning person-to-person crypto trading involving the naira and hinted at forthcoming regulations to further govern the sector.

Uncertainty Lingers

Despite the uproar, Binance has yet to issue a formal response to Nigeria’s allegations and denials, leaving lingering doubts about the fate of Tigran Gambaryan and the broader implications for Binance’s operations in Nigeria.

BNB Price Analysis

Despite the turmoil, BNB, Binance’s native token, continues to experience positive trading at $600, with an 8.3% increase last week. This resilience reflects investor confidence in the ability of Binance to weather the regulatory challenges and legal uncertainties.

What are your predictions for the future of cryptocurrency in Nigeria?