- June 20, 2023
- Posted by: [email protected]
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Following the Nigerian Securities and Exchange Commission’s (SEC) circular declaring Binance Nigeria Limited illegal in the country, Binance CEO Changpeng Zhao has announced that Binance has formally sent a cease-and-desist notice to the fraudulent entity known as Binance Nigeria Limited. Zhao took to Twitter on Sunday, June 18, to make this announcement, citing the SEC’s circular released on June 9 as the basis for their action against the entity.
In response to the circular, a Binance spokesperson clarified that the entity mentioned in the SEC’s document is not affiliated with the company. The spokesperson stated that Binance intends to seek clarification from the Nigerian SEC and reiterated their commitment to cooperating with the regulatory body in determining the next steps.
Although Binance denied any association with Binance Nigeria Limited, as mentioned in the SEC’s circular, the company is simultaneously facing legal action from the United States Securities Exchange Commission (SEC). The U.S. SEC has filed 13 charges against Binance entities and Changpeng Zhao, including allegations of operating as an unregistered exchange, broker-dealer, and clearing agency, as well as misrepresenting trading controls. Despite reportedly earning $11.6 billion from U.S. customers, Binance and Zhao failed to register as an exchange, broker-dealer, or clearing agency, according to the U.S. SEC.
On June 17, U.S. Judge Amy Berman Jackson accepted an agreement between Binance.US, Binance, and the United States Securities and Exchange Commission. This deal resulted in the removal of an earlier temporary restraining order, which sought to freeze all Binance.US assets.
Binance, which operates in approximately 100 countries, registered its headquarters in George Town, Cayman Islands, in 2017. In 2019, it also registered a subsidiary in Mahe, Seychelles.
