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Last updated: March 1, 2024 06:52 EST | 2 min read

The Nigerian government has imposed a staggering $10 billion fine on Binance as part of a crackdown on the platform in an effort to stabilize the nations local currency.

Bayo Onanuga, the special adviser on information and strategy to President Bola Tinubu, revealed the fine in an interview with the BBC, according to areport Premium Times reported on Friday.

According to Onanuga, Binance has allegedly profited significantly from illegal transactions in Nigeria while the country has suffered substantial losses.

The Nigerian governments move comes after the Office of the National Security Adviser (ONSA) confirmed that it is investigating the operations of Binance and other cryptocurrency platforms.

The ONSA stated that it is coordinating an interagency investigation into Binances activities.

Earlier this week, the Nigerian governmentdetained two executivesof Binance who had flown into the country to negotiate with authorities amid the crackdown.

However, the meetings reached an impasse as Binance officials declined to meet some of the governments demands.

The executives were accused of operating a business worth billions without the necessary registrations and documentation.

The Nigerian authorities demanded that Binance provide data on transactions involving the Nigerian Naira on its platform over the past seven years.

They also requested the removal of certain data relating to Nigeria from the platform.

However, the Binance executives insisted on being taken to their respective countries embassies before complying.

It is worth noting that Binance is not registered in Nigeria and has no physical presence in the country, according to Onanuga.

He alleged that people had been arbitrage trading the dollar-naira rates on the platform, which negatively impacted the value of the local currency.

Onanuga claimed that Binance was cooperating with the Nigerian government by providing information and had already suspended naira-related transactions on its platform.

Last week, the exchange alsointroduced a price capforTether ( USDT)tokens on its peer-to-peer (P2P) platform in order to comply with local regulatory requirements.

At the time, it restricted traders on Binances P2P platform from selling USDT above the set cap of 1,802 naira per USDT.

Nevertheless, the Nigerian government is seeking at least $10 billion in retribution from Binance.

The Nigerian governments actions against Binance and other crypto firms stem from concerns over continuous manipulation of the forex market and illicit movement of funds.

Authorities believe that these activities have contributed to the weakening of the naira.

In September 2023, Nigerias Securities and Exchange Commission (SEC)declared Binance Nigeria Limited illegal, stating that the platform was neither registered nor regulated by the commission.

Binance previously pleaded guilty to criminal money laundering charges brought by the U.S. Department of Justice, agreeing to pay $4.3 billion to settle the case.

Binances founder and CEO, Changpeng Zhao (CZ),also pleaded guiltyand agreed to step down from his position.

CZs criminal trial has been postponed to April 30 by a U.S. court.

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Nigerian Authorities Slap Binance with $10 Billion Fine Amid Crypto Crackdown - Cryptonews