The federal government is seeking restitution of at least $10 billion from Binance for its involvement in what it terms “illegal transactions” in Nigeria.
Bayo Onanuga, the special adviser on information and strategy to President Bola Tinubu, revealed this during an interview with the BBC on Friday.
This move comes as part of the government’s crackdown on crypto exchange platforms, including Binance, in Nigeria. Two top executives of Binance were reportedly detained on February 28, 2024, over allegations of price manipulations.
Onanuga highlighted that Binance’s operations have led to substantial losses due to its manipulation of exchange rates. He emphasized that the platform sets illegal exchange rates, which impacts the Nigerian economy negatively.
According to Onanuga, Binance’s actions have hindered Nigeria’s efforts to stabilize its economy, as only the Central Bank of Nigeria (CBN) has the authority to set exchange rates.
Furthermore, Onanuga mentioned that Binance staff have cooperated with the government by providing information.
Prior to this interview, Onanuga warned that Binance could adversely affect Nigeria’s economy if not addressed by the federal government.
On June 9, 2023, the Securities and Exchange Commission (SEC) declared the operations of Binance Nigeria Limited illegal.
Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), revealed on February 27, 2024, that $26 billion had passed through Binance Nigeria from unidentified sources within a year. The CBN is collaborating with the SEC to eradicate price manipulations in the FX market.
On February 20, the CBN announced a partnership with the Office of the National Security Adviser (ONSA) to investigate and penalize individuals involved in illicit activities within the FX market.
