Nigeria’s government is demanding billions of dollars from Binance, claiming the crypto exchange manipulated the exchange rate of its fiat currency.
According to a new report from the BBC, the Nigerian government is fining Binance $10 billion, claiming that the top global cryptocurrency exchange by volume manipulated exchange rates in such a way that the naira – the country’s issued currency – fell by 70%.
Bayo Onanuga, special advisor to Nigerian President Bola Tinubu, tells the BBC that Binance has failed to register with the government to legally operate a crypto business, also noting that the collapse of the naira in recent months was not “the result of normal activities. ”
As Onanuga says according to the BBC:
“Suddenly the exchange rate went through the roof… and it was caused by the people on the Binance platform. The government couldn’t just fold its hands and let this matter continue.”
According to the report, two Binance executives were arrested in Nigeria last week in connection with the alleged crimes.
Furthermore, Olayemi Cardoso, the governor of Nigeria’s central bank, tells the BBC that Binance’s Nigerian arm has moved $26 billion worth of untraceable funds.
In November, Binance faced legal trouble in the US when its founder, Changpeng Zhao, pleaded guilty to violating anti-money laundering laws. The cryptocurrency exchange was fined $4.3 billion at the time and Zhao resigned from his role as CEO of the company.
Zhao is still awaiting sentencing.
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