Binance CEO, Changpeng Zhao, has taken a decisive stance against a fraudulent entity masquerading as Binance Nigeria Limited, revealing that a formal cease-and-desist letter has been dispatched. The move comes in response to the Nigerian Securities and Exchange Commission (SEC) issuing a circular on June 9, deeming Binance Nigeria Limited as an unlawful entity within the country.
Dismissing any affiliation with the company mentioned in the SEC’s circular, Binance spokespersons assert that the organization is fully committed to collaborating with the Nigerian SEC and seeks clarification from the regulatory body. Binance vehemently denies any connections to Binance Nigeria Limited, distancing itself from the fraudulent operation.
However, the legal troubles for Binance continue further. The renowned cryptocurrency exchange and its CEO, Changpeng Zhao, is embroiled in a legal battle with the U.S. Securities and Exchange Commission. The regulatory authority has filed a lawsuit against Binance and Zhao, citing 13 counts of violations.
Allegations include misrepresenting trading controls and operating an unlicensed exchange, broker, and clearing agency. Furthermore, the SEC claims that Binance and Zhao neglected to register as an exchange, broker-dealer, or clearing agency, despite amassing a staggering $11.6 billion from U.S. consumers.
A glimmer of hope emerged for Binance on June 17 when a settlement agreement was reached between Binance.US, the U.S. SEC, and the presiding judge, Amy Berman Jackson. Judge Jackson authorized the deal, resulting in the withdrawal of the previously imposed temporary restraining order freezing all Binance.US assets. This agreement signifies a significant turning point for the embattled cryptocurrency exchange.
Binance’s global reach spans nearly one hundred nations through its website. Founded in 2017, the company’s headquarters reside in George Town, Cayman Islands. Additionally, Binance established a subsidiary on the picturesque Seychelles island of Mahé in 2019, further expanding its international presence.
Despite the recent legal setbacks and regulatory challenges, Binance remains steadfast in its commitment to maintaining a reputable and compliant operation. The cease-and-desist letter sent to the fraudulent entity operating as Binance Nigeria Limited and the ongoing dialogue with the Nigerian SEC and the settlement agreement in the U.S. demonstrates the exchange’s determination to rectify any misconceptions and ensure adherence to legal standards.
With transparency and cooperation as guiding principles, Binance strives to navigate the intricate landscape of cryptocurrency regulations while continuing to serve its vast global user base.
