Binance, the renowned cryptocurrency exchange, has publicly denounced the subsidiary, Binance Nigeria Limited, labeling it a “scammer entity.”
Changpeng Zhao, the founder, and CEO of Binance, took to Twitter on Sunday to make the startling revelation.
“Binance have issued a cease and desist notice to the scammer entity known as ‘Binance Nigeria Limited.’ Do not believe everything you read in the news,” Zhao tweeted.
Binance have issued cease & desist notice to the scammer entity "Binance Nigeria Limited".
Don't believe everything you read in the news. 🤷♂️
— CZ 🔶 BNB (@cz_binance) June 18, 2023
This controversy follows the recent declaration by the Nigeria Securities and Exchange Commission (SEC Nigeria) that the operations of Binance Nigeria Limited within the country are illegal.
The regulatory body made it clear that Binance Nigeria Limited is neither registered nor regulated by the commission, rendering its activities in Nigeria unlawful.
According to SEC Nigeria, the website operated by Binance Nigeria Limited entices the Nigerian public to engage in crypto asset trading on its various web and mobile platforms.
However, the commission firmly stated that any member of the investing public who chooses to interact with the entity does so at their own peril, as it lacks proper oversight and regulatory compliance.
“The attention of the Securities and Exchange Commission (the Commission) has been drawn to the website operated by Binance Nigeria Limited, soliciting the Nigerian public to trade crypto assets on its various web and mobile-enabled platforms.
“Binance Nigeria Limited is neither registered nor regulated by the Commission, and its operations in Nigeria are therefore illegal. Any member of the investing public dealing with the entity is doing so at his/her own risk,” SEC said in a statement.
Binance, known as the leading blockchain ecosystem and cryptocurrency infrastructure provider worldwide, boasts an extensive financial product suite, including the largest digital asset exchange.
Nevertheless, the company has recently encountered a series of setbacks, causing significant disruptions to its operations.
Among these challenges, Binance announced plans to withdraw from multiple countries, such as the Netherlands, Cyprus, Canada, and Australia.
Additionally, the company faced charges filed by the U.S. Securities and Exchange Commission (SEC), further intensifying its predicament.
The SEC sued both Binance and Changpeng Zhao, accusing the company of artificially inflating its trading volumes, diverting customer funds, and deceiving investors about its market surveillance controls.
Binance, however, vehemently refuted these allegations, sparking a contentious legal battle with the regulatory body.
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