Binance Issues Cease and Desist Notice to Deceptive Nigerian Entity

In a significant development, Binance CEO Changpeng Zhao has publicly announced that Binance, a leading cryptocurrency exchange, has formally issued a cease and desist notice to the deceptive entity operating as Binance Nigeria Limited. The announcement was made on Sunday, June 18, via Zhao’s official Twitter account.

This move comes in the wake of the Nigerian Securities and Exchange Commission (SEC) releasing a circular on June 9, categorizing Binance Nigeria Limited as an illegal entity operating within the country’s jurisdiction. It’s worth noting that Binance has maintained that it has no affiliation with this entity mentioned in the SEC’s circular.

Reports indicate that a spokesperson from Binance responded to the SEC’s circular, emphasizing the lack of connection between the company and the mentioned entity. The spokesperson conveyed Binance’s commitment to seeking clarification from the Nigerian SEC and expressed the company’s readiness to cooperate with the commission in determining the appropriate course of action.

While Binance disavowed any association with Binance Nigeria Limited, it concurrently faces legal challenges from the United States Securities Exchange Commission (SEC). The U.S. SEC has levied 13 charges against Binance entities and CEO Changpeng Zhao.

Among the charges filed are allegations of operating as an unregistered exchange, broker-dealer, and clearing agency, as well as misrepresenting trading controls. The U.S. SEC has highlighted that despite generating a staggering $11.6 billion from U.S. customers, Binance and Zhao neglected to register as an exchange, broker-dealer, or clearing agency.

An important recent development occurred on June 17 when U.S. Judge Amy Berman Jackson approved an agreement reached between Binance.US, Binance, and the U.S. SEC. Consequently, a previous temporary restraining order seeking to freeze all Binance.US assets was dismissed.

Binance, known for its global presence spanning approximately 100 countries, established its headquarters in George Town, Cayman Islands in 2017. In 2019, the company further registered a subsidiary in Mahe, Seychelles, solidifying its international operations.

With these recent developments, Binance continues to navigate regulatory challenges while emphasizing its dedication to resolving legal matters and ensuring compliance with the relevant authorities.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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