Binance, a prominent cryptocurrency platform, has alleged that unidentified individuals in Nigeria demanded substantial payments in digital currency to resolve regulatory issues encountered by the company in the country.
Richard Teng, the CEO of Binance, revealed this assertion in a blog post shared with TheCable on Tuesday, shedding light on the challenges the firm faced with Nigerian authorities.
The situation escalated when on February 28, Nigerian authorities detained two senior executives of Binance, including Nadeem Anjarwalla, Binance’s regional manager for Africa, and Tigran Gambaryan, Binance’s head of financial crime compliance, as part of an investigation into alleged illegal operations and foreign exchange rate manipulations.
Following these events, Nigeria’s government filed a criminal charge against Binance for “tax evasion” on March 25, coinciding with Anjarwalla’s flight from detention.
In response to these developments, Teng outlined Binance’s attempts to engage with Nigerian authorities, including a meeting in Abuja on January 8, during which criminal allegations were presented. However, despite multiple requests, Binance did not receive detailed allegations and was not afforded the opportunity for a substantive response.
Teng disclosed that during the meeting, Binance employees were approached by unknown individuals who suggested making a secret cryptocurrency payment to settle the allegations. This demand, communicated through Binance’s local counsel, was declined by the company.
Binance reiterated its willingness to engage in settlement negotiations under specific conditions, including access to detailed allegations and official, documented agreements signed by all relevant parties.