Binance Disassociates from ‘Binance Nigeria Limited’: A Deep Dive into the SEC Controversy”
- Binance, the global crypto exchange, has disclaimed any connection with ‘Binance Nigeria Limited’, a company recently declared illegal by Nigeria’s SEC.
- Binance Nigeria Limited, a fraudulent entity is no way related to Legitimate binance.com
- Amidst the Nigerian controversy, Binance faces a lawsuit from the US SEC, with charges including operating unregistered exchanges and misrepresenting trading controls.
Binance, the renowned cryptocurrency exchange, has recently made it clear that it has no ties with the entity known as ‘Binance Nigeria Limited’. This clarification comes in the wake of a circular issued by the Securities and Exchange Commission (SEC) of Nigeria, which declared Binance Nigeria Limited as an illegal entity in the country on June 9, 2023.
Binance has reassured its users that their assets on the platform remain secure and accessible, despite the ongoing controversy. The crypto exchange is actively seeking to understand the SEC’s stance and has expressed its willingness to collaborate with the regulatory body on future actions.
This development in Nigeria coincides with Binance facing legal challenges in the United States. The US SEC has filed a lawsuit against Binance entities and its CEO, Changpeng Zhao, levying 13 charges against them. The charges encompass operating unregistered exchanges, broker-dealers, and clearing agencies, as well as misrepresenting trading controls.
The US SEC alleges that Binance and Zhao have generated $11.6 billion in revenue from US customers without the necessary registrations as an exchange, broker-dealer, and clearing agency. It’s important to note that Binance Holdings Limited, the parent company of Binance, is registered in George Town, Cayman Islands, while Binance Investments Company is registered in Mahe, Seychelles.
As the crypto industry continues to evolve, regulatory scrutiny is intensifying. Binance’s situation underscores the importance of clear and consistent regulatory frameworks for crypto exchanges worldwide. As the story unfolds, the crypto community will be watching closely to see how Binance navigates these challenges and what implications this could have for the broader industry.
SEC Charges Against Binance for Alleged Mishandling of Funds and Deception of Regulators
