Binance CEO accuses Binance Nigeria of scamming.
The CEO of Binance, Changpeng ‘CZ’ Zhao, recently expressed his dissatisfaction with Binance Nigeria Limited on Twitter, claiming that the company is a scam. CZ also stated that Binance had issued a cease and desist notice to the alleged scammer entity. The notice is a legal warning that demands Binance Nigeria Limited to immediately stop falsely claiming association with the Binance brand. Binance aims to protect its reputation and dissociate itself from any fraudulent actions that may have been attributed to the Nigerian subsidiary.
This claim has shocked the crypto community and raised questions about the credibility of the Nigerian subsidiary of the prominent exchange. Additionally, this news comes only days after the Nigerian Securities and Exchange Commission (SEC) charged Binance Nigeria with operating illegally in the country. The regulators allege that Binance Nigeria has not obtained the necessary registration and regulatory approvals required to operate as a crypto exchange within the Nigerian market. Therefore, the regulators warned Binance Nigeria to cease soliciting local investors to trade digital assets immediately. The regulator also cautioned local investors that they lack the required safeguards when investing in crypto assets and risk losing their entire investment.
The actions and decisions made by Binance, in conjunction with regulatory authorities, will ultimately determine the path forward. It is essential for the subsidiary to prioritize regulatory compliance, user protection, and transparency to rebuild trust and establish a sustainable presence within the Nigerian market.
Behind the Binance Nigeria Limited Scam
A search conducted found that “Binance Nigeria Limited” is a registered entity with the Corporate Affairs Commission (CAC) in Nigeria. The company was registered with the CAC number-1639782 on the 9th of December, 2019, with a physical address in MABUSHI DISTRICT. However, a Google search found that the provided address was the office address of Gitto Costruzioni Generali Nigeria Ltd, a construction firm. Additionally, a search on the CAC website revealed that no records were available that match the construction firm. Moreover, there is also the presence of another organization called “Binance Holdings Limited” with similar registration details but no registration number, registration date, or social media handles for “Binance Nigeria Limited,” raising additional issues and potential problems.
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Notably, the only recognized Binance arm on the African continent is Binance Africa, which plays a crucial role in promoting blockchain technology and crypto adoption across the African continent. Through its community efforts, Binance Africa aims to educate and engage individuals about the potential of blockchain technology, crypto, and related developments in the industry.
