Nigerian Government Demands User Data from Binance in FX Probe.

26 Apr 2024

The Nigerian government has intensified its scrutiny of cryptocurrency exchange Binance, demanding the company reveal its top 100 users in the country alongside transaction data spanning the past six months. This move comes amidst an ongoing investigation into alleged exchange rate manipulation by crypto platforms.

According to a report by Vanguard, the Nigerian government, through the Office of the National Security Adviser (ONSA), has requested the aforementioned information from Binance. This data is reportedly crucial for their investigation and aims to shed light on the exchange's activities within the country. Additionally, the ONSA has urged Binance to settle any outstanding tax liabilities.


This action follows a series of events highlighting the heightened tensions between the Nigerian government and cryptocurrency exchanges. In February, the government initiated a crackdown on crypto platforms suspected of manipulating the dollar-to-naira exchange rate. Binance, a prominent player in the Nigerian crypto space, became a focal point of these investigations.

The pressure began with a statement by President's Special Adviser, Bayo Onanuga, urging authorities to clamp down on crypto companies for their alleged role in foreign exchange market manipulation. Onanuga specifically accused Binance of setting independent exchange rates and hindering the Central Bank of Nigeria's (CBN) control. He further emphasized Binance's limitations in various jurisdictions, including the US, Singapore, Canada, and the UK, advocating for a ban on the platform and similar services within Nigeria.

Following this narrative, the CBN, in collaboration with the Nigerian Communications Commission (NCC), directed telecom operators to restrict access to crypto websites and applications. This move resulted in widespread user reports of difficulties accessing Binance's platform, ultimately forcing the company to shut down its Naira P2P service.

Furthermore, news emerged in February regarding the arrest of two senior Binance executives by Nigerian authorities. The executives, identified as Tigran Gambaryan (a former US federal agent) and Nadeem Anjarwalla (a Kenyan Binance executive), were reportedly held for two weeks without access to their passports. Their families accused the Nigerian government of unlawful detention.

Amidst this evolving situation, CBN Governor Olayemi Cardoso revealed that over $26 billion had flowed through Binance Nigeria within the past year from unidentified sources. He emphasized the CBN's responsibility to safeguard Nigerians and outlined collaborative efforts with the EFCC, the police, and the ONSA.

The recent demand for user data appears to be the latest step in the government's attempt to identify the accounts and sources linked to the reported $26 billion flow. With the two Binance executives still in custody, the Nigerian government appears determined to pursue its investigation. The coming days are likely to witness further developments in this ongoing saga.


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