In a fresh controversy, the Nigerian government has accused global cryptocurrency exchange Binance of allegedly helping terrorist groups and criminals use its platform for illegal financial activities. The exchange, that is already battling several lawsuits in the West African nation, is now under scanner for allegedly helping terrorist groups including Boko Haram and Islamic State West Africa Province (ISWAP).
The fresh escalation between two parties comes after Nigerian officials accused Binance of trying to “bribe them with $50 million USD” in exchange for securing release of their jailed executive Tigran Gambaryan.
Alhaji Mohammed Idris, Nigeria’s Minister of Information, said in an interview on Thursday that the government has found evidence showing Binance was linked to certain terrorist and criminal groups.
He explained, “We stumbled on evidence linking the operations of Binance and these criminal elements ― terrorists and their like.”
This statement adds to the pressure on Binance, which is already facing multiple legal issues in Nigeria. The company is charged with money laundering and tax evasion. There’s also a massive claim that Binance owes Nigeria $81 billion in “lost economic activity.”
This claim is still being debated in court. Despite all this, Binance has denied the accusations and pleaded not guilty to the criminal charges. The company also hasn’t made any comments on the $81 billion claim.
The Nigerian government says it started looking into Binance because they found that criminal groups, including terrorists and kidnappers, were using the exchange to move money.
Alhaji Idris said in an interview with DLNews, that when authorities saw financial links between Binance and these criminal groups, they became very concerned. He added, “If you see a flow of finance between somebody who is purportedly doing financial transactions in your land and then people who are engaged in acts of destabilization, certainly this will be of interest.”
The legal challenges Binance faces in Nigeria is not an isolated case pertaining to just one country. In 2023, Binance had to pay a $4.3 billion fine in the United States after admitting that it failed to stop terrorist groups like Hamas and ISIS from using the platform to move money.
In Nigeria, the government is worried about how Binance has been used to fund militant groups like Boko Haram and ISWAP, which have been responsible for kidnappings and killings across the country.
The legal process in Nigeria is still ongoing, and the trials are expected to continue in April. However, the case has already been full of delays and setbacks, making the outcome uncertain for Binance.
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