Binance CEO Slams Cease-and-Desist Notice on ‘Binance Nigeria Limited’ Group
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Binance CEO Changpeng Zhao has firmly responded to the establishment of a fraudulent organization posing as Binance Nigeria Limited through a formal cease-and-desist letter.
This step was taken after the Nigerian Securities and Exchange Commission (SEC) issued a June 9 circular stating that Binance Nigeria Limited was operating unlawfully.
Binance CEO Clampdown on Fraudulent Mimic Company
In recent events, Binance, one of the world’s largest cryptocurrency exchanges, has taken legal action against a fraudulent Nigerian business entity.
The exchange has sent a cease-and-desist notice to the organization to tackle its illegal activities and protect teeming Binance users in Nigeria.
Binance has emerged as a leading force in the cryptocurrency market, offering a wide range of digital assets for trading. The exchange’s commitment to maintaining a secure ecosystem has made it a popular choice among traders worldwide.
However, the rapidly growing crypto industry has also served as a hotbed of fraudulent activities, which has, in turn, posed a constant challenge for crypto traders and investors.
Binance recently discovered a Nigerian business entity engaging in fraudulent activities under its brand name.
In a swift response to this development, Binance CEO Changpeng Zhao officially declared that Binance had sent a cease-and-desist notice to the fraudulent organization called Binance Nigeria Limited.
Binance have issued cease & desist notice to the scammer entity "Binance Nigeria Limited".
Don't believe everything you read in the news. 🤷♂️
— CZ 🔶 Binance (@cz_binance) June 18, 2023
Zhao took to Twitter on Sunday to announce a call for an immediate cessation of all unlawful actions attributed to the fraudulent company.
It can be recalled that the Nigerian Securities and Exchange Commission (SEC) released a circular on June 9, declaring Binance Nigeria Limited as an unauthorized company in the country.
The fraudulent entity reportedly operated in Nigeria, using deceptive tactics to trick individuals into participating in fake investment schemes.
Such scams often lure unsuspecting victims with promises of extraordinary returns or exclusive investment opportunities.
According to reports, a representative from Binance stated that the concerned organization in the notice is not connected to Binance.
"The entity mentioned in the circular is not affiliated with us. We are therefore seeking clarity from the Nigerian SEC and remain committed to working with them cooperatively on the next steps," Binance said.
Via @TechpointAfrica
— 𝕿𝖍𝖊 𝕷𝖎𝖛𝖎𝖓𝖌 𝕻𝖆𝖗𝖆𝖉𝖔𝖝 (@mainohis) June 13, 2023
The spokesperson revealed the company plans to request further information from the Nigerian SEC while emphasizing the willingness of Binance to collaborate with the commission concerning future actions.
Binance Faces Lawsuit Battle
The decision of Binance to send a cease-and-desist notice to a fraudulent Nigerian entity marks a significant step in combating scams and ensuring user protection within the cryptocurrency space.
Although Binance has denied any affiliation with Binance Nigeria Limited, as stated in the SEC’s circular, the company is facing a lawsuit filed by the United States Securities and Exchange Commission (SEC).
Binance entities and Zhao are facing 13 charges filed by the U.S. SEC, some of which border on accusations of engaging in activities as an unregistered exchange, broker-dealer, and clearing agency. The company is also accused of misrepresenting trading controls.
The commission claims that Binance and Zhao failed to register as an exchange, broker-dealer, or clearing agency despite generating $11.6 billion from the U.S.
However, on June 17, Judge Amy Berman Jackson of the United States district court granted her endorsement to a settlement between Binance.US, Binance, and the U.S. Securities and Exchange Commission (SEC).
This agreement dismisses a previous temporary restraining order (TRO) that aimed to freeze all Binance.US assets.
On June 14, Judge Jackson conveyed her inclination for the parties involved to autonomously come to a resolution rather than depending on her decision.
Consequently, it was reported that the parties reached an agreement on June 16.
This development of the agreement led to Binance.US taking to Twitter to announce their satisfaction with the court’s decision.
We want to provide an update on the current battle https://t.co/AZwoBOh0gq finds itself in with the SEC. We are pleased to inform you that the Court did not grant the SEC’s request for a TRO and freeze of assets on our platform which was clearly unjustified by both the facts and…
— Binance.US 🇺🇸 (@BinanceUS) June 17, 2023
The consent order mandated Binance to return all fiat currency and crypto assets linked to Binance.US by the specified deadline set by the court.
Furthermore, the agreement imposes restrictions on Binance’s global executives, prohibiting their access to the private keys of all wallets, including hot and cold wallets.
Despite the recent difficulties and regulatory obstacles that Binance faces, Chanpeng Zhao emphasized the company’s unwavering commitment to ongoing operations.
Although we maintain that the SEC's request for emergency relief was entirely unwarranted, we are pleased that the disagreement over this request was resolved on mutually acceptable terms.
User funds have been and always will be safe and secure on all Binance-affiliated…
— CZ 🔶 Binance (@cz_binance) June 17, 2023
While expressing satisfaction with the resolution of the SEC issue, the Binance CEO assures that users’ funds have remained and will continue to be safe and secure across all Binance-related services.