Binance CEO Summoned by Nigerian Committee to Testify

Binance faces significant scrutiny in Nigeria following its recent settlement with the U.S. Department of Justice (DOJ).

According to local reports, Nigeria’s House of Representatives Committee on Financial Crimes has issued a summons to Binance CEO Richard Teng, setting a deadline of March 4 for his appearance.

The committee, chaired by Ginger Onwusibe, has raised concerns about Binance’s alleged involvement in various financial crimes, including money laundering and terrorism financing. Failure to comply with the summons may prompt the committee to take further action within its legal authority.

Following Binance’s acknowledgment of guilt in the U.S. and the imposition of a record $4.3 billion fine, the Nigerian committee sought clarification from Binance’s Managing Director in December. However, Binance’s reluctance to engage with the committee led to the recent ultimatum.

Onwusibe emphasized the committee’s responsibility to safeguard Nigerians from financial crimes perpetrated by foreign entities. The accusations against Binance, including terrorism financing and tax evasion, are viewed seriously by the committee, which remains steadfast in its commitment to combat financial wrongdoing.

In addition to regulatory concerns, Nigeria is grappling with economic challenges, prompting efforts to enhance tax revenue collection. Despite serving a significant user base in Nigeria, Binance allegedly operates without fulfilling tax obligations or providing accessible avenues for user complaints, a situation the committee finds unacceptable.

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Binance’s troubles in Nigeria have intensified further. Recent actions by the Nigerian Communications Commission and the detention of Binance executives by the Department of State Security underscore the escalating regulatory pressure on the exchange. The Central Bank of Nigeria has also highlighted substantial financial flows through Binance Nigeria, raising questions about the transparency of these transactions.