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Binance seems to be getting entangled in another legal battle. The House of Representatives Committee on Financial Crimes in Nigeria has summoned Richard Teng, the Chief Executive of Binance Holding Limited, over allegations of terrorism financing and money laundering.
Committee’s Ultimatum and Serious Allegations
Tope Omogbolagun, a PUNCH journalist, reported that the Chairman of the Committee, Ginger Onwusibe, issued a stern seven-day ultimatum to Binance Holdings LTD., demanding their appearance before the committee by March 4, 2024. Onwusibe expressed concern over the serious allegations against Binance, including terrorism financing, money laundering, and tax evasion.
Chairman Onwusibe showed concerns stating, “The allegations of terrorism financing, money laundering, and tax evasion amongst others levelled against Binance are damning enough. At this material time, we need all the tax dollars and to block the leaks and channels to financing terror.”
Repeated Summons
The Committee had previously summoned Binance Holding Limited’s Chief Executive, Richard Teng, through a letter dated December 12, 2023. Despite multiple invitations, Teng reportedly refused to appear before the Committee to address concerns related to Binance’s business operations in Nigeria.
The Chairman warned that if Binance Holdings fails to comply with the summons, the Committee will not hesitate to invoke constitutional powers to take appropriate measures.
Concerns Over Tax Evasion and Exploitation
The Committee’s concerns extend beyond the allegations of terrorism financing and money laundering. Chairman Onwusibe raised concerns about Binance running its operations in Nigeria without paying taxes and lacking a physical office for handling customer complaints.
Chairman Onwusibe firmly warns Binance, “You cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service.”
He further states, “It is also our duty to do everything in our power to protect Nigerian investors from predatory firms, and no distraction and manipulation can stop us.”
Chairman Onwusibe has emphasized the Committee’s commitment to combating financial crimes, and that the Committee will not resist in using the constitutional powers granted to protect Nigerian citizens and the country’s financial integrity.
What’s Next?
As the House of Representatives Committee on Financial Crimes has intensified its investigation into Binance, the cryptocurrency community all over the world is watching closely whether Binance is any longer trustable or not.
The ex-CEO Chnagpeng Zhao having admitted to committing fraud in the lawsuit against the U.S. SEC and still awaiting final sentencing, we are awaiting what new revelations will this legal summoning and procedure against Binance Holdings lead to.