Binance Holdings Ltd. finds itself embroiled in controversy in Nigeria, as the cryptocurrency exchange alleges being solicited for a significant payment to resolve its legal issues in the country. The company also demands the release of its detained employee, raising concerns about potential bribery and regulatory challenges.
Richard Teng, CEO of Binance, outlined the situation in a blog post on Monday, shedding light on the exchange’s attempts to engage with Nigerian authorities regarding criminal allegations. During a meeting in Abuja on January 8, unidentified individuals approached Binance employees with suggestions of payment to settle the accusations. Although not confirmed, this incident casts shadows over the exchange’s interactions with local authorities.
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Further complicating matters, Binance’s legal team received a demand for a substantial cryptocurrency payment within 48 hours to resolve the issues discreetly. While specifics were not disclosed, The New York Times reported that the requested bribe amount hovered around $150 million, citing undisclosed sources.
Nigeria accuses Binance of facilitating speculative activities that have contributed to the devaluation of the naira against the dollar. In response, the country has tightened regulations on the exchange, adding fuel to the escalating tensions between Binance and Nigerian authorities.
The unfolding events underscore the challenges faced by cryptocurrency exchanges operating in regulatory gray areas. As Binance navigates these turbulent waters, questions linger about the implications of bribery allegations and the broader regulatory landscape governing cryptocurrencies in Nigeria.
