Binance has sent a cease and desist letter to a fake Nigerian entity

By: Henry Felix

Binance has sent a cease and desist letter to a fake Nigerian entity

June 19, 2023 6:53 AM

This follows a notification from the Nigerian Securities and Exchange Commission, which declared Binance Nigeria Limited to be unauthorized to operate in Nigeria.


Binance CEO Changpeng Zhao revealed that the company has publicly issued a notice of cease and desist to the fake enterprise known as Binance Nigeria Limited. 


Zhao made the announcement→ on Twitter on Sunday, June 18. According to a circular published→ by the Nigerian Securities and Exchange Commission (SEC) on June 9, Binance Nigeria Limited is not authorized to operate within Nigeria.


According to sources→, a Binance representative answered that the entity listed in the circular is unrelated to the company. The company's representative stated that it intends to seek clarification from the Nigerian SEC and restated its commitment to cooperating with it on the next steps.

 


Despite Binance's argument that it has no association with Binance Nigeria Limited, as noted in the SEC's circular, the company is also facing a lawsuit→ from the US Securities and Exchange Commission. The US Securities and Exchange Commission has brought 13 accusations against Binance businesses including Zhao.


Operating as an unregulated exchange, broker-dealer, or clearing agency, and misrepresenting trade controls are among the charges. According to the US Securities and Exchange Commission, despite generating $11.6 billion from US consumers, Binance and Zhao failed to register as an exchange, broker-dealer, or clearing agency.


On June 17, U.S. Judge Amy Berman Jackson accepted an agreement between Binance.US, Binance, and the United States Securities and Exchange Commission. As a result of this arrangement, a previous temporary restraining order that sought to freeze all Binance.US assets was dismissed.


In 2017, Binance established its headquarters in George Town, Cayman Islands, despite the fact that its services are offered in more than a hundred other nations. It also established a subsidiary in the Seychelles island of Mahe in 2019.