Binance Denies $10 Billion Fine from Nigerian Authorities
The Nigerian government has demanded $10 billion in damages from the cryptocurrency exchange Binance for allegedly manipulating the exchange rate of the naira (NGN), according to a report by the BBC.
A Binance representative told Peoples Gazette that the company has not received any fine from local authorities for such an amount.
“We recently discussed ways to resolve issues with Nigeria, but we have not heard of any $10 billion demands. […] Our goal is to maintain good relations with the government and people of Nigeria. We want to resume services in the country as soon as possible, but we do not intend to pay fines for employees or services,” he said.
Presidential adviser Bayo Onanuga stated that his comments to the BBC were misrepresented in the media.
“I said that our government might impose large fines on Binance for what happened. I never said that Binance was informed about fines or that it would definitely be $10 billion,” he clarified.
Binance declined to comment when approached by ForkLog.
According to the authorities, the trading platform has influenced the rise of foreign currencies within the country through NGN speculation, leading to a nearly 70% drop in the naira over the past few months.
Presidential adviser Bayo Onanuga noted that the government observed a negative impact from the operations of the largest exchange by trading volume:
“People on the Binance platform are fixing the exchange rate [NGN], which quickly affects Nigeria’s economy at a time when the country is trying to stabilize it.”
He also added that Binance and other cryptocurrency companies are not registered in accordance with Nigerian laws.
“We are asking for about $10 billion as compensation for the damage that almost ruined our economy in a very short time,” said the presidential adviser.
Earlier, the Financial Times reported on the detention of Binance executives who traveled to the country following the authorities’ decision to ban several digital asset trading sites.
According to Onanuga, the company’s top managers are currently cooperating with the local government to “provide additional information.”
In an interview with the BBC, presidential spokesperson Zakari Midjinyawa noted that exchange employees are under investigation and “are being questioned as part of an investigation conducted by security agencies on currency market regulation issues.”
“Discussions and drafting of agreements with Binance representatives are ongoing. They are cooperating,” added Midjinyawa.
In 2023, Nigeria’s central bank lifted the ban on cryptocurrency operations and emphasized the need for market regulation.
However, restrictions on trading and storing digital assets remain in place for local banks, effective since February 2021.
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