Binance hit with $10 Billion Fine by Nigerian government Amid Forex Crisis Allegations

In a major development, the Nigerian government has levied a hefty $10 billion fine on Binance, the prominent cryptocurrency trading platform. The fine is based on allegations that Binance played a role in influencing Nigeria’s ongoing foreign exchange crisis. The announcement was made by Bayo Onanuga, the Special Adviser to President Bola Tinubu on information and strategy, in a recent interview with the BBC.

Onanuga contends that Binance engaged in “illegal transactions” in Nigeria, making significant profits while the nation suffered substantial losses. He claims that Binance, which is not registered in Nigeria, allowed users to manipulate dollar-naira exchange rates, negatively impacting the country’s currency value. Onanuga further asserts that the platform fixed exchange rates illegally, a function reserved for the Central Bank of Nigeria.

The Nigerian government alleges that Binance’s operations led to an increase in foreign exchange rates through currency speculations, causing the Naira’s value to plummet by nearly 70% in recent months. In response to the accusations, Binance has reportedly cooperated with the government by providing information and has suspended naira-related transactions on its platform.

The Office of the National Security Adviser (ONSA) has officially confirmed an ongoing investigation into Binance’s operations. Zakari Mijinyawa, Head of Strategic Communication at the ONSA, stated that the investigation is part of coordinated efforts with the Central Bank of Nigeria and other law enforcement agencies.

This development follows the arrest and detention of two top Binance executives earlier in the week over alleged manipulations in foreign exchange trading and speculative activities. Onanuga has called for the ban of Binance, along with other trading platforms like Kucoin, urging swift action from the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) to cease their operations in the country.

Onanuga emphasizes that Binance, facing regulatory challenges in various countries, should not dictate the value of the Naira on its crypto exchange platform. The situation adds to the growing global scrutiny of cryptocurrency platforms and their impact on national currencies, signaling potential shifts in regulatory approaches to the cryptocurrency industry.