The Nigerian government is demanding at least $10 billion as retribution from Binance amid crackdown on the crypto exchange platform in desperate moves to salvage the value of the nation’s local currency.
Bayo Onanuga, special adviser on information and strategy to President Bola Tinubu, made this known Friday morning in an interview with the BBC.
Binance profited substantially from its “illegal transactions” in Nigeria while the nation suffered huge losses, Mr Onanuga said during the interview.
Mr Onanuga claimed that Binance is not registered in Nigeria and has no presence in the country. He alleged that people used the platform to arbitrarily fix dollar-naira rates; a practice he said negatively impacted the value of the local currency.
He explained further that the Binance team were already cooperating with the Nigerian government by providing useful information, and had already suspended naira related transactions on the platform.
Nigeria nevertheless wants Binance to pay at least $10 billion in retribution, Mr Onanuga said.
Earlier in the week, Mr Onanuga had alleged that if not stopped, the cryptocurrency trading platform will destroy the Nigerian economy by arbitrarily fixing foreign exchange rate.
“If we don’t clamp down on Binance, Binance will destroy the economy of this country. They just fix the rate,” the presidential spokesman said on Channels Television’s Politics Today programme on Wednesday.
It was earlier reported that Nigerian government blocked the online platforms of Binance and other crypto firms to avert what it considers continuous manipulation of the forex market and illicit movement of funds.
Apart from Binance, other platforms such as Forextime, OctaFX, Crypto, FXTM, Coinbase, Kraken, among others, were equally blocked.
Presidency and regulatory sources said the government decided to move against Binance and other crypto firms following reports that currency speculators and money launderers were using them to execute criminal activities. Authorities believe the ‘criminal activities’ going on on platforms are contributing significantly to the weakening of the naira.
Binance, a digital assets platform, serves as a window for peer to peer transactions allowing users to advertise interest to sell or buy currencies of their choice.
In September 2023, Nigeria’s Securities and Exchange Commission (SEC) placed a disclaimer on Binance Nigeria Limited, saying the platform was “neither registered nor regulated by the Commission and its operations in Nigeria are therefore illegal”.
In its reaction last week, Binance said “users behaving in a manipulative way” will be removed from its platform.
“As industry leaders, we are working hand in hand with local authorities, lawmakers, and regulators to ensure we act on non-compliance,” the platform added, noting that it is “setting an upper limit for ads, filtering and removing bad ads, requiring and raising deposits for merchants posting ads as well as processes for actioning against any market manipulators.”
The crypto exchange platform has, however, declined further comments amid the ongoing clampdown.
The Nigerian government’s retribution claim is coming months after Binance pleaded guilty and agreed to pay $4.3 billion to settle criminal money laundering charges levied by the U.S. Department of Justice.
Binance founder and CEO, Changpeng Zhao, also known as CZ, pleaded guilty and agreed to step down from his position. His criminal trial has been postponed to 30 April by a US court.
