Nigeria reacted sharply to Binance Holdings ’ accusations of bribery, saying it was a distraction from the exchange’s operations.
The statement issued Wednesday followed a blog post by Binance CEO Richard Teng, in which he accused a Nigerian government official of pressuring cryptocurrency officials to accept a secret agreement. The agreement would allegedly resolve the Nigerian government’s claims against the exchange.
„Teng made false bribery allegations against unidentified Nigerian government officials, who he claimed demanded payments of $150 million in cryptocurrencies to resolve an ongoing investigation against the company,” – Ministry of Information spokesman Rabiu Ibrahim said .
He added that the Binance CEO’s claim „lacks even a hint of substance.” He also described it as a „diversionary tactic and an attempt at blackmail.”
The exchange „will not clear its name in Nigeria by resorting to bogus claims and mud-slinging media campaigns,” he added. „The only way to resolve this issue will be to submit to an unhindered investigation and due process of law.”
According to Teng, the Nigerian House of Representatives Committee on Financial Crimes (HCFC) has threatened to arrest Binance employees and ban them from leaving the country.
After leaving the HCFC meeting, unidentified individuals were said to have approached Binance employees, offering to resolve the situation through a secret payment. „ The New York Times reported that a $150 million „settlement” was reached within the Nigerian government.
Directors detained, access blocked
The conflict began on February 26, when directors Tigran Gambaryan and Nadeem Anjarwalla traveled to Abuja to deal with a dispute between Binance and Nigeria. However, Gambaryan and Anjarwalla were detained in Nigeria for two weeks in March without justification, and later heard charges of money laundering and tax evasion.
Anjarwalla escaped shortly thereafter, but was recaptured in late April in Kenya, nearly 5,000 miles away.
The Nigerian government ordered the country’s telcos to block access to Binance and other cryptocurrency exchanges. They justified the action with concerns over the devaluation of Nigeria’s currency, the naira, and the exchanges’ alleged involvement in illegal remittances.
Reports indicate that the Nigerian government is angry about the outflow of capital from the country due to cryptocurrency exchanges. This has worsened the African nation’s financial problems.
