A top US markets regulator has charged cryptocurrency giant Binance and its founder Changpeng Zhao with multiple violations
Binance Nigeria has been accused of facilitating untraceable funds amounting to $26 billion in 2023. AFP

KEY POINTS

  • The committee's chair said in the summons announcement that 'the era of exploitation is over'
  • Committee chair Onwusibe reportedly warned of taking measures against Binance if it fails to appear this time
  • Binance Nigeria was accused by the central bank governor of funneling $26 billion in undetectable funds in 2023

The Nigerian House of Representatives Committee on Financial Crimes has summoned Binance CEO Richard Teng over alleged "suspicious flows" on the world's largest cryptocurrency exchange by trading volume.

Committee chair Ginger Onwusibe issued a seven-day ultimatum to Binance's management during a Friday panel meeting, as reported by Punch. Teng has been ordered to appear before the committee on or before Monday, March 4, over alleged "suspicious flows" on Binance.

Onwusibe called out Teng for supposedly refusing to appear in earlier panel invitations to discuss "the total disregard for extant laws governing business and financial operations in the country," the outlet wrote.

If Binance fails to heed the summons, Onwusibe warned that the committee could invoke its constitutional authority and take appropriate measures against the crypto firm, as per the report.

"You cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over and all culprits must be held accountable," Onwusibe was quoted as saying.

News about the ultimatum comes days after the Central Bank of Nigeria's governor, Olayemi Cardoso, said in a press briefing that in 2023, "$26 billion has passed through Binance Nigeria from sources and users who we cannot adequately identify." He said there were ongoing concerns that "certain practices go on, that indicate illicit flows going through" some entities," and "suspicious flows at best."

Nigeria kicked off an extensive crackdown on crypto exchanges last month amid their apparent favored status among the Nigerian public to trade the Nigerian Naira, which was devalued in January.

Among the steps taken to curb the downturn of the Naira, the Nigerian government blocked Binance, Kraken, Coinbase, and several other crypto trading platforms last month. The said move came after a special adviser to Nigerian President Bola Tinubu slammed Binance as "hijacking" the Nigerian central bank's "role."

"Binance, facing regulatory showdown in many countries, and causing disruptions in the currency market, should not be allowed to dictate the value of the Naira, not on its crypto exchange platform," Bayo Onanuga wrote on X (formerly Twitter).

Binance has other burdens on its back outside Nigeria, as the crypto exchange agreed to pay a staggering $4.3 billion fine as part of its founder and former CEO Changpeng Zhao's guilty plea deal. Zhao was charged with failing to ensure that the exchange had an effective anti-money laundering initiative to protect its many investors.

Zhao is scheduled for criminal sentencing on April 30. He is out on a $175 million bond and has been barred from traveling outside the United States.

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