Binance Nigeria Limited Faces Cease and Desist Notice Following SEC Circular

Binance CEO Changpeng Zhao recently announced the issuance of a cease and desist notice to Binance Nigeria Limited, a fraudulent entity operating in Nigeria. This action was taken in response to a circular released by the Nigerian Securities and Exchange Commission (SEC) declaring the illegality of Binance Nigeria Limited within the country.

Taking to Twitter on Sunday, June 18, Zhao made the official announcement. The SEC circular, issued on June 9, had explicitly mentioned the illegality of Binance Nigeria Limited in Nigeria.

Binance responded to the SEC’s circular, asserting that the mentioned entity is not associated with the company. A spokesperson for Binance expressed their intent to seek clarification from the Nigerian SEC and reiterated their commitment to cooperating with the regulatory body regarding the next steps.

While denying any affiliation with Binance Nigeria Limited as mentioned in the SEC circular, Binance is simultaneously facing legal challenges from the United States Securities Exchange Commission (SEC). The U.S. SEC has filed 13 charges against Binance entities and CEO Changpeng Zhao.

Among the charges are allegations of operating as an unregistered exchange, broker-dealer, and clearing agency, as well as misrepresenting trading controls. The U.S. SEC has accused Binance and Zhao of failing to register as an exchange, broker-dealer, or clearing agency, despite reportedly earning $11.6 billion from U.S. customers.

In a recent development on June 17, U.S. Judge Amy Berman Jackson approved an agreement between Binance.US, Binance, and the U.S. SEC. This agreement led to the dismissal of a previous temporary restraining order, which sought to freeze all Binance.US assets.

Binance, a global platform available in approximately 100 countries, established its headquarters in George Town, Cayman Islands, in 2017. In 2019, the company also registered a subsidiary in Mahe, Seychelles.