Nigeria Demands $10 Billion from Binance in Compensation

March 2, 2024 William Ross Business, Cryptocurrency News 0

Nigeria Demands $10 Billion from Binance in Compensation

Nigeria’s government has reportedly made a significant financial demand from cryptocurrency giant Binance. According to a BBC report, the Nigerian government “says it has demanded almost $10bn (£8bn) in compensation” from the company.

The specific reasons behind this demand remain unclear, and neither the Nigerian government nor Binance have publicly commented on the situation. However, the BBC report suggests the demand might be linked to alleged “illegal” activities connected to cryptocurrency transactions.

On Tuesday, Nigeria’s central bank governor Olayemi Cardoso said Binance Nigeria had moved $26bn worth of untraceable funds.

“These allegations are weighty,” Tilewa Adebajo CFG Advisory tells the BBC. “That’s a huge sum – even more than the annual Nigeria diaspora remittances of $24bn”.

“The government must have done their homework, hence the allegations.”

This news comes amidst a period of increased scrutiny on cryptocurrency operations in Nigeria. The Central Bank of Nigeria (CBN) has previously issued warnings regarding the risks associated with cryptocurrency and has restricted banks from facilitating cryptocurrency transactions.

It remains to be seen how Binance will respond to the Nigerian government’s demands and whether the two parties will reach an agreement. Those who are interested in the future of cryptocurrency operations in Nigeria and the development of cryptocurrency regulations are probably closely watching the situation.

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William Ross
About William Ross 161 Articles
I am a cryptocurrency enthusiast and writer with over five years of experience in the industry. I have been following the development and innovation of Bitcoin and Ethereum since their inception, and I enjoy sharing my insights and analysis with readers. I have written for various reputable platforms, such as CoinDesk, Cointelegraph, and Decrypt, covering topics such as market trends, regulation, security, and adoption. I believe that cryptocurrency is the future of finance and technology, and I am passionate about educating and informing people about its benefits and challenges.