Nigerian authorities have detained two executives from Binance, the world’s largest cryptocurrency exchange, as part of an investigation into potential terrorism financing, money laundering, and other illicit finance activities, sources confirmed to DL News on Thursday.
The ongoing probe includes demands for access to details of Binance’s customers in Nigeria, indicating a broader examination into market manipulation and the impact of Binance’s operations on the country’s currency, the naira.
Two executives, an American and a British citizen, were summoned by the Nigerian government to discuss Binance’s operations. They were later detained, marking a notable escalation in the dispute between Nigeria and Binance. Binance media representatives have not responded to multiple requests for comment, and the exchange’s website is no longer accessible in Nigeria. Some users have shifted their trading activities to alternative platforms like KuCoin and Bybit, while others have turned to crypto peer-to-peer trading groups on Telegram.
However, concerns have been raised about the safety and regulation of such informal trading channels. Rume Ophi, executive secretary of the Stakeholders in Blockchain Technology Association of Nigeria, warned that the government’s actions could inadvertently fuel a crypto black market that is difficult to monitor and regulate.
DL News could not confirm whether the detained Binance executives are cooperating with the investigation. Sources close to the matter indicated that both individuals have requested to be released to their respective embassies in Nigeria.
Nigerian authorities had previously ordered internet service providers to block access to Binance and other crypto exchange websites, following accusations of aiding currency speculation and market manipulation. Binance’s recent guilty plea in the United States for violating banking laws has further raised concerns, leading Nigerian authorities to explore similar allegations.