In a recent development, Binance, the world’s largest cryptocurrency exchange, has taken a decisive step by issuing a cease and desist order to a nigerian firm as confirmed by it’s CEO Changpeng Zhao in a tweet on Sunday. Zhao labeled the Nigerian entity as a “scammer entity,” escalating tensions between the two parties.
Binance Issues Cease and Desist Order
This move comes in the wake of Nigeria’s markets regulator’s earlier directive to halt it’s operations within the country. The regulator cited the absence of registration and regulation of the local unit, which had been targeting Nigerian investors through an unregistered website, rendering its activities illegal.
Binance have issued cease & desist notice to the scammer entity "Binance Nigeria Limited".— CZ 🔶 Binance (@cz_binance) June 18, 2023
Don't believe everything you read in the news. 🤷♂️
The Crypto company has been grappling with a series of setbacks recently, prompting its decision to exit several countries, including the Netherlands, Cyprus, Canada, and Australia. Additionally, the company has been entangled in a legal battle with the U.S. Securities and Exchange Commission (SEC).
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The SEC filed a lawsuit against the crypto company and CEO Changpeng Zhao earlier this month, alleging various wrongdoings. The charges include artificially inflating trading volumes, misappropriating customer funds, and providing misleading information to investors regarding its market surveillance controls. The Crypto giant vehemently denies these allegations put forth by the SEC and intends to contest them.
As it faces mounting regulatory scrutiny and legal challenges, its actions in response to the Nigerian markets regulator’s order and the subsequent cease and desist notice to contribute to the ongoing turbulence surrounding the exchange and its operations.