Binance CEO Describes Operations Of Nigerian Subsidiary As Fraudulent

Binance’s chief executive officer, CEO, Changpeng Zhao, has described the operation of the cryptocurrency exchange, Binance Nigeria Limited, as a “scammer entity”.

Zhao disclosed this in a tweet on Sunday, confirming the operations of the company in Nigeria.

He tweeted, “Binance have issued cease and desist notice to the scammer entity ‘Binance Nigeria Limited’. Don’t believe everything you read in the news.”

Zhao’s statement follows the Securities and Exchange Commission (SEC) position that the operations of Binance Nigeria Limited is illegal in the country.

The commission said the cryptocurrency platform had been actively promoting its web and mobile-enabled platforms to Nigerians.

According to the commission, the company is neither subject to its regulations nor registered.

SEC said, “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.

“As the regulator with the statutory mandate of investor protection, the commission urges Nigerians to be wary of investing in crypto assets, and crypto-asset related financial products and services if the service provider/its platform is not registered or regulated by the commission.”

Meanwhile, Binance, the world’s largest crypto trading platform, is facing a series of lawsuits, as it plans to exit the Netherlands, Cyprus, Canada, and Australia.

Obiajulu Joel Nwolu

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