The Strategist

Nigeria demands $10B in compensation from Binance

03/04/2024 - 02:29

Nigeria has demanded that cryptocurrency exchange Binance pay $10 billion in damages in relation to the manipulation of the value of the naira (NGN), reports the BBC citing the Nigerian government.

Nuno_Patricio Photography
Nuno_Patricio Photography
The government claims that Binance's speculative activities with the naira affected the rise of foreign currencies in Nigeria, resulting in an almost 70% decline in the value of the national currency in recent months.

Advisor to the Nigerian president Bayo Onanuga stated, "There are people on the Binance platform who are fixing the exchange rate, which is rapidly affecting the Nigerian economy at a time when the country is trying to stabilize it." Additionally, he mentioned that Binance, like other cryptocurrency companies, is not registered under the laws of Nigeria.

The Financial Times reports that local law enforcement seized executives from Binance who had flown into the nation after the government decided to outlaw multiple websites that traded digital assets. Nigeria's president's advisor highlighted that the company's senior management are working with the local government to "provide additional information".

The personnel of the exchange are being questioned as part of a security agency probe into the regulation of the currency market, according to presidential spokesperson Zachary Mijinyawa.


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