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

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