Nigeria Claims Binance Helped Fund Terrorism and Kidnapping
Prior to the Nigerian government’s crackdown on Binance, kidnapping gangs and terrorists funneled illicit funds through the cryptocurrency exchange, Information Minister Alhaji Mohammed Idris recently stated. Idris said this situation left the Nigerian government with no option but to take action against Binance.
The minister’s comments came days after he rejected assertions the Nigerian government was extorting the cryptocurrency exchange. In remarks published by Semafor, Idris also denied claims the government holds Binance responsible for the depreciation of the local currency. However, Idris is quoted in the Semafor report as saying Binance contributed to the naira’s decline.
Consequently, the Nigerian government instituted several measures targeting Binance, including filing an $81 billion lawsuit against the exchange. Money laundering and tax evasion charges have also been filed against Binance.
When the Nigerian government initially took action against Binance, it also detained Tigran Gambaryan, the crypto exchange’s security head. Gambaryan’s prolonged detention prompted allegations the Nigerian government was using it to force Binance to pay a $150 million bribe. After spending several months in detention, Gambaryan was eventually released on health grounds, ending a dispute that threatened U.S.-Nigeria relations.
However, after Gambaryan repeated the bribery claims during an interview with a U.S. publication, the Nigerian government accused the Binance employee of lying. A few days later, Binance was served with the billion-dollar lawsuit. The latest allegation, linking Binance to terrorism and kidnapping, adds to its growing legal woes in a country with Africa’s largest crypto market.
