Binance CEO, Changpeng Zhao, recently announced that Binance has officially issued a cease and desist notice to the entity fraudulently operating under the name Binance Nigeria Limited. Zhao used Twitter to disseminate this news on Sunday, June 18.
SEC Releases Circular on Binance Nigeria Limited’s Illegality
On June 9, the Nigerian Securities and Exchange Commission (SEC) had issued a circular stating the illegality of Binance Nigeria Limited in the country. Reacting to this, a Binance spokesperson clarified that the mentioned entity was not affiliated with their company. The company’s representative expressed their intentions to engage with the Nigerian SEC for more clarity and pledged cooperation for future actions.
The Ongoing Legal Battles for Binance
Despite Binance’s denial of any association with Binance Nigeria Limited mentioned in the SEC’s circular, it concurrently faces a lawsuit from the United States Securities Exchange Commission (SEC). The U.S. SEC has leveled 13 charges against Binance and its CEO, Changpeng Zhao.
Charges against Binance and Zhao include operating as an unregistered exchange, broker-dealer, clearing agency, and misrepresenting trading controls. The U.S. SEC alleges that Binance and Zhao, despite earning $11.6 billion from U.S. customers, failed to register as an exchange, broker-dealer, or clearing agency.
A Positive Development for Binance in the US
In a positive turn of events for Binance on June 17, U.S. Judge Amy Berman Jackson approved an agreement between Binance.US, Binance, and the U.S. SEC. This agreement resulted in the dismissal of a previous temporary restraining order aimed at freezing all Binance.US assets.
A Little Background on Binance
Binance, a global cryptocurrency exchange available in approximately 100 countries, established its headquarters in George Town, Cayman Islands, in 2017. Two years later, in 2019, it also registered a subsidiary in Mahe, Seychelles.
