Binance Holdings, the world’s leading cryptocurrency exchange, has dissociated itself from “Binance Nigeria Limited,” declaring it a scam entity. In a recent tweet, Binance CEO Changpeng Zhao (CZ) warned the public not to believe whatever they read in the news about it.
Binance Issues Cease and Desist Notice to Binance Nigeria Limited
In the tweet, CZ stated that Binance has officially issued a cease and desist notice to the fraudulent entity known as Binance Nigeria Limited. The action was taken in response to a circular released by the Nigerian Securities and Exchange Commission (SEC). The circular had declared the illegality of Binance Nigeria Limited in the country, prompting Binance to take action.
Binance Cooperating With Nigerian SEC
Although Binance claims no affiliation with Binance Nigeria Limited, as mentioned in the SEC’s circular, the company’s spokesperson has stated that they are seeking clarity from the Nigerian securities regulator. Furthermore, Binance reiterated its commitment to cooperating with the Nigerian SEC on the next steps.
The news comes as a surprise to many, as Binance Nigeria Limited had been promoting itself as a subsidiary of Binance, even going as far as using Binance’s logo and trademarks on its website. Binance has a history of being proactive in dealing with fraudulent or scam entities, and this recent action against Binance Nigeria Limited highlights the company’s commitment to the safety and security of its users and the broader cryptocurrency community.
Meanwhile, amidst the issues related to Binance Nigeria Limited, Binance is simultaneously dealing with a lawsuit filed by the US SEC, charging the crypto exchange and CEO with 13 violations. These include operating as an unregistered broker and exchange, allowing US citizens to trade on its platform, and offering unregistered securities. Despite the allegations, Binance has denied any wrongdoing and has pledged to defend itself “vigorously” in the case.
