Nigeria Arrests Binance Officials in Crypto Clampdown 

ABUJA, iexclusivenews – Two top executives of Binance, the world’s biggest cryptocurrency exchange, have been arrested and their passports confiscated in Nigeria.

The arrest comes amid Nigeria’s sweeping crackdown on crypto exchanges, which the government accuses of facilitating illicit and speculative transactions involving the naira, Nigeria’s currency.

The Financial Times reported that the executives were detained by the national security adviser after they flew to Nigeria following the government’s ban on several crypto trading websites last week.

The Nigerian authorities are also demanding the list of all Nigerian users on Binance since it launched in the country.

An anonymous user @aanuadeoye alleged on social media that the government is targeting Binance for its alleged role in laundering money and evading taxes.

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Binance Faces Pressure

Binance has not commented on the situation, but it has stopped the trading of the naira against bitcoin and tether, two widely used digital coins.

This follows the statement of Nigeria’s central bank governor, Olayemi Cardoso, who expressed concern over the massive amount of funds flowing through crypto exchanges, especially Binance.

He said that Binance Nigeria had handled $26 billion in the past year from sources and users that could not be properly identified.

“We are concerned that certain practices go on that indicate illicit flows going through a number of these entities [crypto exchange platforms] and suspicious flows at best,” Cardoso said.

Government Probes Crypto Exchanges

The government’s anti-corruption agency, police, and national security adviser are conducting a joint probe into cryptocurrency exchanges, requesting their user data and transaction records.

It is unclear whether the arrest of the Binance officials is related to the government’s attempt to curb currency speculation and stabilize the naira.

As this online news outlet previously reported, the government also ordered telecommunication companies to block access to major cryptocurrency exchanges, such as Binance, Coinbase, and OKX.

The Federal Government of Nigeria allegedly issued these harsh orders to revive the naira and address currency speculation.

Crypto Ban Sparks Debate

The government’s stance on cryptocurrency regulation has sparked debate and controversy in Nigeria, where many people use digital coins as a form of alternative finance and investment.

Some critics have accused the government of trying to stifle innovation and economic freedom, while others have supported the government’s efforts to protect the naira and prevent money laundering and criminal activities.

Bayo Onanuga, Special Adviser on Information and Strategy to President Tinubu, recommended a ban on all cryptocurrency exchange platforms.

He said this in response to rumors that Binance was collaborating with the Nigerian government to control trading on its platform.

The situation is still developing, with the arrest of Binance officials being a major development in Nigeria’s evolving approach to cryptocurrency regulation.