Cryptocurrency giant Binance is ensnared in a mounting crisis in Nigeria as the nation's parliament deliberates issuing an arrest warrant for the company's executives. During a Monday investigative hearing, the House of Representatives Committee on Financial Crimes issued the threat after Binance's Managing Director, Richard Teng, failed to respond to a summons. Despite Binance's legal representative, Senator Ihenyen, attempting to engage with the committee, lawmakers rejected the representation, insisting on the appearance of Teng or another senior executive. Committee Chairman Ginger Onwusibe announced the imminent issuance of an arrest warrant due to the executives' non-compliance.
This parliamentary action unfolds simultaneously with the detention of two other senior Binance officials by Nigerian authorities, accused of involvement in "illegal transactions" in the country. The Nigerian government's demand for a substantial $10 billion from Binance reflects a broader crackdown on the cryptocurrency exchange platform. The government's motivation appears rooted in efforts to stabilize the value of the national currency, the naira. As Binance grapples with legal and regulatory challenges, its future in Nigeria remains uncertain amidst heightened scrutiny from both the government and the parliamentary committee.
