Binance Issues Cease-And-Desist Notice To ‘Binance Nigeria’


Binance says Nigerian company is ‘scam entity’ after Nigerian regulator tells it to stop operating in country, amidst regulatory crackdown

Binance has issued a cease and desist notice to a company called “Binance Nigeria Limited”, which company chief executive Changpeng Zhao called a “scammer entity” in a message on Twitter on Sunday.

Zhao said the Nigerian entity is not affiliated with Binance.

The move comes after the Nigerian SEC financial regulator last week ordered Binance to halt its operations in the country, saying “Binance Nigeria Limited” was not registered or regulated, making it illegal.

“Binance Nigeria Limited is hereby directed to immediately stop soliciting Nigerian investors in any form whatsoever,” the SEC said in a statement.

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Image credit: Jonathan Borba/Pexels

Crypto crackdown

Zhao said the firm would seek clarity from the SEC and cooperate with it on the next steps.

His company, the world’s biggest cryptocurrency exchange, has recently announced plans to leave the Netherlands, Cyprus, Canada and Australia and faces regulatory action from multiple US regulatory agencies.

The US Securities and Exchange Commission earlier this month charged Binance and Zhao with artificially inflating trading volumes, diverting customer funds and misleading investors about market controls. Binance disputes the charges.

The SEC also sued Coinbase, the largest crypto exchange in the US by trading volume, saying it was operating its platform as an unregistered securities exchange, broker and clearing agency.


The regulator said Coinbase had since at least 2019 made billions of dollars by facilitating crypto exchanges while evading disclosure requirements meant to protect investors.

Coinbase general counsel Paul Grewal said the company would continue operating as usual and that it had “demonstrated commitment to compliance”.