Binance Holdings Ltd., the world’s largest cryptocurrency exchange, in a recent blog post, says it was asked for a secret payment to resolve ongoing legal issues in Nigeria.
Binance Heaps Hefty Allegations of Extortion
The alleged demand for the payment, amounting to $150 million, came amidst growing tension between the cryptocurrency exchange and Nigerian authorities. This led to the detention of its employees.
Chief Executive Officer Richard Teng in his blog indicated that Binance attempted to engage with Nigerian officials to resolve the legal issues. However, during a meeting on January 8 in Abuja, matters escalated into severe criminal accusations.
According to Teng, Binance’s representatives had encounters with unknown individuals who suggested that a secret payment could resolve the allegations on it as a company.
“As our employees were leaving the venue, they were approached by unknown persons who suggested to them to make a payment in settlement of the allegations,” Teng wrote.
He further alleged that on the same day, Binance lawyer received a demand for a secret crypto payment within 48 hours. Notably, this payment they claim will “make these issues go away.”
Although Teng did not state in the post whether the “individuals” were representing the Nigerian authorities.
Nigerian Authorities’ Response and Legal Challenges Ahead
In a swift reaction, the Nigeria’s National Security Adviser spokesman Zakari Mijinyawa, disputed Teng’s account. Notably, he stated that investigators remains “confident that the sequence of events did not play out “as Binance has indicated, nor the material facts.”
Mijinyawa maintains that the courts would ultimately decide the outcome of these allegations. Currently, of the two Binance executives arrested, Nadeem Anjarwalla managed to escape custody to Kenya. INTERPOL says it is working with the authorities to extradite him to face justice in Nigeria.
The other official, Tigran Gambaryan is currently held at the Kuje correctional center in Abuja. He is set to go on trial this month on charges of tax evasion, currency speculation, and money laundering.
The incident in Nigeria is just one of several legal challenges Binance has faced in recent times. Binance’s founder Changpeng Zhao bagged a four months sentence in prison in the United States on May 1. He was sentenced on charges that he enabled cybercriminals and terrorist groups to use the platform.
Additionally, Binance last year agreed to pay $4.3 billion in November to resolve allegations in the US.
