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Nigeria Escalates Binance Dispute, Seeks User Information and $10 Billion Reparation

Amid Nigeria's economic downturn, the government accuses Binance of rate manipulation, demanding $10 billion and user data for EFCC, even as Binance hits $100 billion in user funds.

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  • Nigeria demands nearly $10 billion from Binance, accusing it of contributing to the naira's 70% devaluation through currency speculation and rate manipulation.
  • An Abuja court orders Binance to provide the EFCC with data on Nigerian traders amidst the ongoing financial dispute with the Nigerian government.
  • Despite facing legal and regulatory challenges, Binance surpasses $100 billion in user funds and teases an upcoming "Education project" by founder CZ.

Over recent months, leading cryptocurrency exchange Binance has found itself amidst several controversies. In November 2023, Binance founder Changpeng Zhao, better known as CZ , faced up to 18 months in prison following a guilty plea to violations of federal money-laundering laws. 

Earlier this year, India took action against foreign cryptocurrency exchanges, including Binance, accusing them of operating illegally in India and proceeded to restrict local access to their websites.

Recently, amid a severe economic downturn in Nigeria, the government accused Binance of influencing foreign exchange rates by engaging in currency speculation and rate manipulation. This activity has contributed to the naira depreciating by almost 70% in value over the past few months. As a result, the Nigerian government has sought nearly $10 billion in damages from the cryptocurrency exchange.

In a fresh development in the ongoing dispute between the Nigerian government and Binance, an Abuja court has ordered the cryptocurrency exchange to hand over user information to the Economic and Financial Crimes Commission (EFCC).

According to a report, Justice Emeka Nwite issued a temporary order following his decision on the ex parte motion presented by Ekele Iheanacho, the lawyer for the EFCC.

“The applicant’s application dated and filed 29th February 2024, is hereby granted as prayed. That an order of this honorable court is hereby made directing the operators of Binance to provide the commission with comprehensive data/information relating to all persons from Nigeria trading on its platform,” Justice Emeka Nwite ordered.

Meanwhile, Binance has announced a milestone of surpassing $100 billion in user funds. This achievement is the first since the implementation of proof-of-reserve disclosures in November 2022. Additionally, on Tuesday, CZ  revealed his new education project, Giggle Academy, on X (previously Twitter).

Edited by Harshajit Sarmah