Binance issues legally enforceable order to scammer entity amid ongoing battle with US SEC


Share:
  • Nigerian SEC released a circular on June 9 stating the illegality of Binance Nigeria Limited in the country.
  • Reportedly, the entity mentioned in the circular is not affiliated with Binance Exchange.
  • Binance.com has issued a cease and desist notice to the fraudulent entity "Binance Nigeria Limited."

Binance Exchange has come forward to deny any affiliation with Binance Nigeria Limited, a website recently cited by the Nigerian Securities and Exchange Commission for soliciting the country's nationals to trade crypto on its various web and mobile-enabled platforms. The news comes a day after Binance's US subsidiary won approval to operate in the United States.

Also Read: Breaking: Binance to continue US operations

Binance denies ties to Binance Nigeria Limited

Binance Exchange and CEO Changpeng Zhao have denied any ties to Binance Nigeria Limited, with the Chinese billionaire putting the claims out as FUD and highlighting that the company had issued a cease and desist notice to the purported affiliate.

A cease and desist order is a legally enforceable order from a court or government agency directing someone to stop engaging in a particular activity. With Binance issuing one against the Nigerian entity, the largest crypto exchange by trading volume wants to avoid derailments as it continues maneuvering the SEC's clampdown.

The cease and desist order reinforces a statement by a Binance spokesperson on June 12 to deny any connections to the Nigerian entity. At the time, the exchange articulated that it was unaware of and not affiliated with the entity, stressing that user assets on the platform remain safe and accessible.

In case you missed it, the Nigerian Securities and Exchange Commission flagged Binance Nigeria Limited in an official announcement, saying:

Binance Nigeria Limited is not registered nor regulated by the Commission, and its operations in Nigeria are therefore illegal. Any member of the investing public dealing with the entity is doing so at his/her own risk.

The circular was a stern directive to Binance Nigeria Limited to stop soliciting Nigerian investors in any form whatsoever immediately.

Still, Binance Exchange continues to fight against the US SEC after the financial regulator filed 13 charges against Binance entities and Zhao. Citing agency Chair Gary Gensler:

Through thirteen charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law.

Based on the charges, CZ led the exchange to mislead investors about their risk controls. The lawsuit also claims that the two powerhouse names in crypto corrupted trading volumes while actively concealing who was operating the platform.

Following the accusation, the US SEC petitioned the court to freeze Binance.US assets. As reported on June 17, the court turned down this application, citing the need to protect investors and the broader market.

There's absolutely no need for a restraining order should the two sides agree on limits restricting Binance.US' operations in the United States. Shutting [Binance.US] down completely would create significant consequences for the company and the digital asset markets in general.

The exchange will resume operations in the US, strictly under the Binance.US banner, with Binance.com’s control over the US entity severed.

Binance Global officials are not allowed access to private keys of all wallets, including cold and hot wallets, hardware, and software. Further, they cannot access Binance.US’ internal systems and controls within 13 days.

Binance registered vs. supported countries

Binance Exchange serves customers from more than 100 countries with regulatory barriers and international sanctions limiting the reach of its services in regions such as the US, mainland China, and Singapore.

Citing the platform's regional selector, Binance exchange is supported, not registered, in several countries, including:

  • Africa - Nigeria & South Africa
  • America - Canada, Argentina, Brazil, Chile, Colombia, Mexico & Peru
  • Asia and Pacific - Afghanistan, Australia, Bangladesh, Cambodia, India, Indonesia, Japan, Kazakhstan, Mongolia, Myanmar, New Zealand, Pakistan, Philippines, Taiwan & Vietnam
  • Europe - Bulgaria, Czech Republic, France, Greece, Hungary, Italy, Latvia, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Switzerland, Turkey & Ukraine
  • Middle East - Egypt, Israel, Saudi Arabia & United Arab Emirates

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Bitcoin tags $60,000 for the first time in more than two years

Bitcoin tags $60,000 for the first time in more than two years

Bitcoin hit $60,000 after more than two years below this level. BTC liquidations have surpassed $277 million in the last 24 hours. This massive rally in the pioneer cryptocurrency could be attributed to the spot ETF approval.

More Bitcoin News

Arbitrum price resumes rally with Web3 gameathon plan for March

Arbitrum price resumes rally with Web3 gameathon plan for March

Arbitrum, an Ethereum Layer 2 scaling solution, has announced an event for Web3 gaming. The event is likely to attract community members, delegates and Web3 gamers. This could positively influence Arbitrum adoption and is likely to boost ARB gains. 

More Arbitrum News

Ethereum price hits new yearly high at $3,369 as staked Ether rises to 26%

Ethereum price hits new yearly high at $3,369 as staked Ether rises to 26%

Ethereum price has climbed to a new 2024 high of $3,369 on Wednesday. Bitcoin’s rally to $59,000 and the upcoming Dencun upgrade activation on mainnet have likely catalyzed Ethereum’s price gains. 

More Ethereum News

XRP climbs to $0.58 as SEC pushes for deadline extension in Ripple lawsuit

XRP climbs to $0.58 as SEC pushes for deadline extension in Ripple lawsuit

XRP price rallied on Wednesday in response to the Securities and Exchange Commission’s (SEC) push to delay the remedies briefing deadline in its lawsuit against the payment remittance firm. 

More Ripple News

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

Read full analysis

BTC

ETH

XRP