Nigeria Demands $10 Billion Payment from Binance in Cryptocurrency Dispute

BBC reported that the Nigerian government has asserted a demand for nearly $10 billion (£8 billion) in compensation from Binance. Allegations include manipulation of foreign exchange rates through currency speculation and rate-fixing, resulting in the naira's devaluation by nearly 70% in recent months.

Two Binance executives were arrested in Nigeria earlier this week. Nigeria, a significant cryptocurrency market, accuses Binance of transferring $26 billion worth of untraceable funds and failing to register, violating regulations for cryptocurrency firms.

Cryptocurrency transactions, constituting approximately 12% of Nigeria's GDP, surged in the year to June 2023. The government cites concerns about money laundering, terrorist funding, and the recent collapse of the naira, prompting the suspension of multiple cryptocurrency firms, including Binance.

The Central Bank of Nigeria has also closed numerous bureaux de change in efforts to stabilize the national currency.

Resources:

BBC