The Nigerian government has denied allegations by Binance that its officials demanded $150m bribe to make problems of the cryptocurrency exchange company in Nigeria “go away”.
Speaking on Wednesday, the Minister of Information, Mohammed Idris, called Binance’s claim a “phantom” and “diversionary tactic” aimed at undermining the Federal Government amid a criminal investigation into the company’s activities in Nigeria.
“This claim by Binance CEO lacks any iota of substance. It is nothing but a diversionary tactic and an attempted act of blackmail by a company desperate to obfuscate the grievous criminal charges it is facing in Nigeria,” Idris stated in a statement by his spokesman, Rabiu Ibrahim.
“The facts of this matter remain that Binance is being investigated in Nigeria for allowing its platform to be used for money laundering, terrorism financing, and foreign exchange manipulation through illegal trading.
“While this lawful investigation was going on, an executive of Binance, who was in court-sanctioned protective custody, escaped from Nigeria, and he is now a fugitive from the law. Working with the security agencies in Nigeria, Interpol is currently executing an international arrest warrant on the said fugitive.
“The phantom bribe claim is part of an orchestrated international campaign by this company that is facing criminal prosecution in many countries including the United States, to undermine the Nigerian government.”
The minister also pointed to last week’s sentencing of former Binance CEO Changpeng Zhao in the United States, where he pleaded guilty to charges similar to the Nigerian probe and agreed to pay $50 million in fines, as well as $4.3 billion in fines and forfeitures for Binance itself.
He added, “We would like to remind Binance that it will not clear its name in Nigeria by resorting to fictional claims and mudslinging media campaigns. The only way to resolve its issues will be by submitting itself to unobstructed investigation and judicial due process.
“The government of Nigeria will continue to act within its laws and international norms and will not succumb to any form of blackmail from any entity, local or foreign.”
In a blog post on Monday, Binance CEO Richard Teng claimed the company was confronted with the bribery demand in crypto to be paid within 48 hours during a January meeting in Abuja with members of Nigeria’s House Committee on Financial Crimes.
The amount was roughly $150, according to reports.
In the blog post, Teng detailed Binance’s attempts since late 2023 to engage with Nigerian authorities over the allegations against the company, including attending a public hearing in January 2024 where the company was warned of potential arrests if it did not cooperate.
He said Binance refused the alleged bribe demand and instead proposed conditions for settlement talks, including seeing full details of the allegations against the company.
NewsNGR reports that Binance’s problem in Nigeria was one in a broader regulatory crackdown on the company and the cryptocurrency industry globally following economic downturns.
The world’s largest crypto exchange faced scrutiny from watchdogs across the U.S., and Europe, among others, over allegations it has enabled money laundering and other illicit financial flows.
In March, the company was hit with a lawsuit from the U.S. Commodity Futures Trading Commission accusing it of numerous violations.