Crypto Giant Binance Issues A Cease And Desist Order To Binance Nigeria Limited
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The CEO of Binance, Changpeng Zhao, has announced that Binance has issued a cease and desist order against Binance Nigeria Limited. According to Zhao, Binance Nigeria Limited was a scam entity.
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Binance issues a cease and desist order to Binance Nigeria Limited
Binance’s CEO posted a Twitter post regarding this announcement. Zhao said that Binance Nigeria Limited was a “scammer entity.” The report comes after the Nigerian Securities and Exchange Commission (SEC) published a circular saying that the entity operated illegally in Nigeria.
Binance have issued cease & desist notice to the scammer entity "Binance Nigeria Limited".
Don't believe everything you read in the news. 🤷♂️
— CZ 🔶 Binance (@cz_binance) June 18, 2023
According to some reports, a spokesperson from Binance said, “The entity mentioned in the circular is not affiliated with us. We are therefore seeking clarity from the Nigerian SEC and remain committed to working with them cooperatively on the next steps.”
The development comes at a time when Binance has been facing heavy regulatory scrutiny globally. In recent weeks, Binance has faced some challenges that have forced the exchange to announce it was halting operations in Australia, Canada, Cyprus, and the Netherlands.
US SEC files charge against Binance
The SEC has filed a lawsuit against Binance for selling unregistered securities. The regulator had also filed a motion to freeze the assets owned by Binance US amid concerns that funds could be transferred offshore and the records destroyed.
However, the lawyers representing Binance fought this motion saying that freezing all the assets owned by Binance US was equal to the death penalty. A federal judge signed off on a temporary deal between the SEC and Binance US to ensure that only US-based employees could access customer funds as the lawsuit goes on.
Judge Amy Berman Jackson has also ordered the two parties to start proposing the timelines for the lawsuit. The proposed agreement has also said that Binance US will take measures to ensure that no officials from the global Binance Holdings exchange can access the private keys for wallets.
The other provision that has been made in this proposed agreement is for Binance US to create new crypto wallets that can be accessed by global employees. Binance has also been ordered to share additional information with the SEC and reach an agreement to have an expedited discovery schedule. The customers of Binance US will also be able to withdraw funds during the period.
SEC cracks down on the crypto industry
The SEC has been cracking down on the crypto industry. Besides filing a lawsuit against Binance, the regulator also charged the largest US exchange, Coinbase, with the sale of unregistered securities.
The lawsuit filed by the SEC said that Coinbase operated its cryptocurrency exchange as an unregistered national securities exchange and brokerage platform. The SEC has also said that at least 13 crypto assets that Coinbase offered for trading, such as Cardano and Solana, could be classified as crypto asset securities.
The SEC has been tough in regulating the cryptocurrency industry following the collapse of the FTX cryptocurrency exchange in November last year. The former CEO of FTX, Sam Bankman-Fried, is scheduled to start trial in October.
