Binance CEO Slams Cease-and-Desist Notice on ‘Binance Nigeria Limited’ Group

Jimmy Aki
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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.

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 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.

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.

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.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.