The federal government has accused Binance of blackmail after the company alleged officials demanded $150 million in cryptocurrency payments as a bribe to settle the prosecution of its executives in Nigeria.
On Tuesday, Richard Teng, Binance’s chief executive officer
(CEO), said some unknown persons in Nigeria demanded huge payments in digital
currency to make their problems in the country “go away”.
Teng’s allegation followed the detention of Nadeem
Anjarwalla, Binance’s regional manager for Africa, and Tigran Gambaryan, the
company’s head of financial crime compliance, in Nigeria, on February 28.
The two executives were detained as part of a probe
bordering on Binance’s illegal operations in Nigeria and foreign exchange rate
manipulations.
While criminal charges have been filed against Binance and
Gambaryan, Anjarwalla fled detention on March 22.
However, Anjarwalla was reportedly arrested by the Kenya
Police Service in April and the International Criminal Police Organisation
(Interpol) is working towards extraditing him to Nigeria.
In a statement by Rabiu Ibrahim, special assistant to the
minister of information and national orientation, the government said the
allegation by Binance is an attempt by the cryptocurrency exchange to launder
its impaired image as an organisation that does not play by the rules and laws
guiding business conduct in sovereign nations.
“In a blog post that
has now been published by many international media organisations, in an
apparent well-coordinated public relations effort, Binance Chief Executive
Officer Richard Teng made false allegations of bribery against unidentified
Nigerian government officials who he claimed demanded $150m in cryptocurrency
payments to resolve the ongoing criminal investigation against the company,”
the ministry said.
“This claim by Binance CEO lacks any iota of substance. It
is nothing but a diversionary tactic and an attempted act of blackmail by a
company desperate to obfuscate the grievous criminal charges it is facing in
Nigeria.
“The facts of this matter remain that Binance is being
investigated in Nigeria for allowing its platform to be used for money
laundering, terrorism financing, and foreign exchange manipulation through
illegal trading.
“While this lawful investigation was going on, an executive
of Binance, who was in court-sanctioned protective custody, escaped from
Nigeria, and he is now a fugitive from the law. Working with the security
agencies in Nigeria, Interpol is currently executing an international arrest
warrant on the said fugitive.”
BRIBERY ALLEGATION
PART OF ORCHESTRATED INTERNATIONAL CAMPAIGN
The ministry said the bribery allegation is part of an
orchestrated international campaign by Binance to undermine the Nigerian
government.
The ministry said Binance is facing criminal prosecution in
many countries including the United States.
“Just a week ago, the founder and former CEO of Binance,
Changpeng Zhao, was sentenced to prison in the United States, after pleading
guilty to charges very similar to what Binance is being investigated for in
Nigeria. In addition, Zhao agreed to pay a fine of $50 million, while Binance
is liable for $4.3 billion in fines and forfeitures to the US Government,” the
government said.
“We would like to
remind Binance that it will not clear its name in Nigeria by resorting to
fictional claims and mudslinging media campaigns. The only way to resolve its
issues will be by submitting itself to unobstructed investigation and judicial
due process.”
The ministry said the Nigerian government will continue to
act within its laws and international norms and will not succumb to any form of
blackmail from any entity, local or foreign.
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