Binance CEO’s Announcement
Changpeng Zhao, the CEO of Binance, has made a public statement that the cryptocurrency exchange giant has served a formal cease and desist notice to the unauthorized entity operating under the name Binance Nigeria Limited.
Zhao’s declaration on Sunday, June 18, came in the wake of a Nigerian Securities and Exchange Commission (SEC) circular issued on June 9. The circular declared the operations of Binance Nigeria Limited to be illegal.
Binance Responds to SEC’s Claims
Following the SEC’s circular, a spokesperson for Binance clarified that the company has no connection with the entity operating as Binance Nigeria Limited. The representative further expressed Binance’s intentions to engage with the Nigerian SEC to gain clarity on the issue and reiterated Binance’s readiness to collaborate on subsequent actions.
Parallel Litigation in the U.S.
In an unfolding situation, Binance is simultaneously grappling with a legal dispute involving the U.S. Securities Exchange Commission. The U.S. SEC has lodged 13 charges against Binance entities, including its CEO, Zhao.
The accusations encompass operating as an unregistered exchange, broker-dealer, clearing agency, and allegations of misrepresentation of trading controls. It was noted by the U.S. SEC that Binance and Zhao, despite procuring earnings of $11.6 billion from U.S. consumers, had not registered as an exchange, broker-dealer, or clearing agency.
Recent Legal Developments
As of June 17, U.S. Judge Amy Berman Jackson sanctioned an accord between Binance.US, Binance, and the U.S. SEC. This resolution led to the revocation of a prior temporary restraining order intended to immobilize all Binance.US assets.
Binance Global Presence
Established in 2017, Binance, accessible in approximately 100 countries, has its headquarters in George Town, Cayman Islands. Additionally, in 2019, Binance set up a subsidiary in Mahe, Seychelles.
