Binance Issues Cease and Desist to Nigerian ‘Scammer Entity’

Crypto exchange Binance has issued a cease and desist notice to "Binance Nigeria Limited," a fraudulent company that had been soliciting Nigerian investors.

Changpeng Zhao, the CEO of Binance, took to Twitter to denounce the company as a “scammer entity.”

The move followed a circular earlier this month from Nigeria's market regulator warning that Binance Nigeria Limited was “neither registered nor regulated by the Commission” and was therefore illegal. The directive compelled Binance Nigeria Limited to halt its operations within the country, leading to reports that a “local unit” of Binance itself had been banned in the country.

In a statement shared with Decrypt, a spokesperson for Binance said that, "We are aware of the circular, however, the entity mentioned in the circular is not affiliated with us." The spokesperson added that the exchange was "seeking clarity from the Nigerian SEC and remain committed to working with them cooperatively on the next steps."

The individual responsible for registering Binance Nigeria Limited reportedly confirmed that they had hoped to sell the company name to Binance.

The real Binance and regulators

The news comes as the real Binance faces intensifying regulatory pressures around the world.

The exchange has recently pulled back from a number of major markets, namely the Netherlands, Cyprus and Canada, while bank transfers to and from Binance have been halted in Australia—underscoring the complex challenges associated with operating a crypto exchange in an increasingly regulated global environment.

Adding to the growing list of challenges, the U.S. Securities and Exchange Commission (SEC) has instigated legal proceedings against Binance and its CEO, Changpeng Zhao over alleged securities violations.

Binance Fights Back Against SEC Lawsuit Over Alleged Securities Violations

A week after the US Securities and Exchange Commission filed charges against Binance, the largest cryptocurrency exchange by volume filed several motions in the US District Court for the District of Columbia on Monday in opposition to the lawsuit. "The SEC’s request for a temporary restraining order should be denied for several reasons, but the most important is this: there is no risk to BAM’s customer assets," Binance attorney Daniel W. Nelson said in a motion signed by multiple lawyers for the...

The charges include accusations of artificially inflating trading volumes, misappropriating customer funds, and providing misleading information about its market surveillance controls.

Binance has pushed back against the allegations, filing a number of motions in opposition to the lawsuit.

Last week, Binance also came under fire from France’s financial judicial investigation service, with the exchange facing accusations of "aggravated money laundering."