Cryptocurrency giant Binance has denied claims that it is in talks with the Nigerian government about potentially paying fines of up to $10 billion. This statement contradicts a statement made by a government spokesman to the BBC hours earlier.
“We recently discussed ways to resolve issues with Nigeria, but we have not heard any requests for $10 billion,” a Binance official told Peoples Gazette.
The Cayman Islands-based cryptocurrency giant also said it has no plans to pay the Nigerian government to restore its recently cut services or release executives held for alleged involvement in manipulation that led to the rapid collapse of the country's currency, the naira.
“Our goal is to establish a good relationship with the Nigerian government and people. We would like to see our services restart in Nigeria very soon, but we have no intention of paying penalties for staff or services,” the Binance official added.
In response to Binance's stance, President Bola Tinubu's media aide, Bayo Onanuga, told the BBC that his statement was misrepresented in the media. He clarified that the company never stated that it was notified or that the fine was finalized by Nigerian regulators.
“I said that our government could impose heavy fines on Binance for what happened. I never said that Binance was informed about the fines or that it would definitely be 10 billion dollars. I only said that the amount could be applied, because nothing has been finalized yet,” said Onanuga, stating that there were uncertainties about the penalties.
Onanuga accused Binance of aiding those sabotaging the economy by fixing the Nigerian exchange rate. Speaking to the BBC, Onanuga said, “The Binance platform hosts people who fix the exchange rate, which is rapidly affecting the Nigerian economy at a time when Nigeria is trying to stabilize the economy.”
This controversy follows similar false claims made by the Nigerian government about negotiations with the United Arab Emirates to resolve years-long travel restrictions. Following a bilateral meeting in Abu Dhabi, Nigerian officials falsely announced that an agreement had been reached that would lift visa restrictions on Nigerians and allow the United Arab Emirates to continue operations in Nigeria without preconditions. This statement was later found to be false, making the negotiations difficult and billions of lira worth of consultations inconclusive.
*This is not investment advice.