Richard Teng, the CEO of Binance, one of the world’s largest cryptocurrency exchanges, has disclosed an alleged extortion attempt by certain Nigerian government officials.
Teng made these claims in a recent blog post on Tuesday, shedding light on a troubling ordeal faced by the company.
According to Teng, undisclosed officials from Nigeria demanded hefty payments in digital currency to resolve unspecified issues.
The CEO stated that Binance’s legal representative promptly refused the offer, demonstrating the firm’s commitment to ethical practices.
This revelation comes amidst a series of confrontations between Binance and Nigerian authorities.
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Earlier this year, on February 28, the Office of the National Special Adviser (ONSA) detained two high-ranking Binance executives to investigate alleged illegal operations and foreign exchange rate manipulations.
The detained executives included Nadeem Anjarwalla, Binance’s regional manager for Africa, and Tigran Gambaryan, Binance’s head of financial crime compliance.
Subsequently, on March 25, the Federal Government filed criminal charges against Binance, accusing the company of tax evasion.
Particularly, Anjarwalla fled detention during this period, adding further complexity to the situation.
Teng elaborated on Binance’s attempts to engage with Nigerian authorities, highlighting a meeting in Abuja on January 8.
During this meeting, Binance was confronted with criminal allegations, yet details of the accusations were not provided despite requests.
Teng stressed the importance of receiving comprehensive information to prepare a substantive response.
Moreover, Teng revealed an alarming development following the Abuja meeting.
As Binance employees were leaving the venue, they were allegedly approached by unidentified individuals who suggested making a secret payment to settle the allegations.
Later, Binance’s local counsel was purportedly summoned and presented with a demand for a significant cryptocurrency payment within 48 hours to resolve the issues.
Teng responded, “The meeting ended with the Chair confirming they would consider the matter and revert through Binance’s local counsel. However, as our employees were leaving the venue, they were approached by unknown persons who suggested to them to make a payment in settlement of the allegations.”
“Binance clarified that it would engage in settlement negotiations on the conditions that the relevant petition or the details of all allegations were seen,” Teng emphasized. “Any settlement must be official, recorded in writing, and signed by all relevant parties.”
