FG imposes $10bn fine on Binance for alleged role in Nigeria’s forex crisis

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The Federal Government has imposed a $10 billion fine on Binance, a cryptocurrency trading platform, for allegedly contributing to the country’s forex crisis.

Bayo Onanuga, the special adviser to President Bola Tinubu on information and strategy, revealed this in a Friday morning interview with the BBC.

Onanuga stated that Binance gained significant profits through what was deemed as “illegal transactions” during a period of substantial losses for the nation.

In the interview, Onanuga expressed concerns about the cryptocurrency platform causing significant losses by manipulating exchange rates.

He mentioned that the federal government is seeking such retribution from Binance for allegedly fixing foreign exchange rates on its peer-to-peer platform.

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“The platform fixes the exchange rate for the country and it is an illegal rate. The CBN is the only authority that can fix the exchange rate for the country,” Onanuga said.

“Binance platform harbours people who fix the exchange rate which quickly affects the Nigerian economy for the time when Nigeria is trying to stabilize the economy,” Onanuga added.

Earlier, Onanuga had said Binance would destroy Nigeria’s economy if the federal government did not restrict the activities of the company.

Recall that on June 9, 2023, the Securities and Exchange Commission (SEC) said the operations of Binance Nigeria Limited, a subsidiary of Binance, were illegal.

While speaking on the infractions by the crypto exchange platform, Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), on February 27, 2024, said $26 billion passed through Binance Nigeria from unidentified sources in one year.

Cardoso said the apex bank is collaborating with the SEC to eliminate price manipulations in the FX market.

The CBN, had on February 20, announced a partnership with the Office of the National Security Adviser (ONSA) to investigate and penalise those involved in illicit activities within the FX market.