Binance Takes Action: Cease & Desist Notice Served To Fraudulent Nigerian Entity

Jun. 20, 2023
Binance Takes Action: Cease & Desist Notice Served To Fraudulent Nigerian Entity

Binance, the global cryptocurrency exchange, has officially served a cease and desist notice to a fraudulent entity known as Binance’s Nigeria Limited in a bold move to protect its reputation and business interests.

The announcement came directly from Binance’s CEO Changpeng Zhao, who took to Twitter on Sunday, June 18, to address the situation. The move follows a recent circular issued by the Nigerian Securities and Exchange Commission (SEC) declaring Binance Nigeria Limited unlawful under Nigerian law.

Promptly responding to the SEC’s circular, a Binance spokesperson denied any affiliation between the company and Binance Nigeria Limited. The spokesperson emphasized that the entity mentioned in the brochure operates independently.

They also expressed Binance’s commitment to seeking clarification from the Nigerian SEC. Binance’s reiterated its willingness to cooperate with the commission on future steps and initiatives.

Binance is embroiled in more than just this legal battle. The United States Securities Exchange Commission (SEC) has filed a lawsuit against Binance and its CEO, Changpeng Zhao. The lawsuit accuses them of various violations.

The charges include operating as an unregistered exchange, broker-dealer, or clearing agency and providing misleading information regarding trading controls.

The U.S. SEC alleges that Binance’s and Zhao failed to register as an exchange, broker-dealer, or clearing agency. They made an incredible $11.6 billion from clients in the United States.

Agreement Reached Between Binance.US, Binance’s & U.S. SEC

On June 17, U.S. District Judge Amy Berman Jackson accepted an agreement negotiated between Binance. Binance’s American subsidiary, as well as Binance’s. This transaction revoked a previously obtained temporary restraining order, which sought to freeze all of Binance’s assets.

While this is a good move for Binance, the exchange faces severe challenges from the Securities and Exchange Commission in the U.S.

Binance’s, available in about 100 countries, registered its headquarters in George Town, Cayman Islands, in 2017. In 2019, it also reported a subsidiary in Mahe, Seychelles.

Binance’s legal arguments in Nigeria and the U.S. have raised concerns about its regulatory compliance. Despite increasing concerns about its commitment to functioning within the law, it has retained worldwide influence.

The outcomes of these cases will undoubtedly have far-reaching consequences for Binance as it navigates these legal difficulties on several fronts. They will also significantly influence the digital currency sector as a whole.

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Users and investors will closely watch Binance to see how it responds to its current issues. They will also be curious to watch how Binance adapts to regulatory frameworks.

Rida Fatima

News writer
An ardent wordsmith with a rich five-year background in delving into the realms of finance and cryptocurrencies. Alongside curating captivating blogs, Unique's talents extend to crafting imaginative and engaging content.