Nigerian authorities have issued an ultimatum to Binance CEO Richard Teng to testify before its financial crimes committee.
- Nigerian authorities have called Binance’s CEO to appear before their financial crimes committee.
- The government has issued an ultimatum to Binance’s Richard Teng.
- Despite numerous invites, Binance has yet to appear before Nigerian authorities to answer allegations.
Binance issues in Nigeria have taken yet another turn. After blocking the exchange’s website, closing its P2P marketplace, and detaining two of its executives, the government is now preparing to summon Binance’s CEO, Richard Teng, on charges of terror funding and money laundering.
Nigeria Sends Binance an Ultimatum
The CEO of Binance has been given a seven-day ultimatum by the Nigerian House of Representatives Committee on Financial Crimes to come before the committee by Monday, March 4, at the latest, according to local news source Punch.
The regulator was called in response to recent claims that cash with questionable origins were passing via the exchange’s Nigerian subsidiary in 2023. Governor of the Central Bank of Nigeria, Olayemi Cardoso, emphasized that $26 billion from anonymous sources and consumers went through Nigeria through Binance in 2023.
In the event that Binance CEO Richard Teng declines to appear in court, Ginger Onwusibe, the chairman of the Committee on Financial Crimes, has threatened to exercise the committee’s constitutional authority. Teng has declined numerous offers to discuss the Nigerian government’s worries about the country’s banking and business regulations being followed.
Citing the constitutional obligation to safeguard Nigerians and the nation’s resources, Onwusibe underlined the committee’s dedication to combating financial crimes.
In closing, Onwusibe urged Binance to carry out its responsibilities, which include paying taxes and setting up a real office where citizens can file grievances.
Conversely, Binance is also subject to a $4.3 billion fine in the United States because to allegations of money laundering, outside of Nigeria.
According to a presidential advisor, Nigeria was considering fines from Binance that may total more than $10 billion. The advisor then withdrew his remarks, arguing that he had been misquoted.
The Reason This Is Important
Over the past year, regulators from all around the world have been closely monitoring Binance. Its problems with Nigerian regulations may make things more difficult for it to operate and cast doubt on its compliance.