The House of Representatives Committee on Financial Crimes has recommended the arrest of the Chief Executive Officer of Binance Holding Ltd, one of the world’s leading cryptocurrency exchange platforms. The recommendation follows allegations of tax evasion and money laundering activities in Nigeria, where the company has operated for over six years.
The motion for the CEO’s arrest was put forward by Rep. Isah Dogonyaro (APC- Jigawa state) during a public hearing in Abuja. The hearing focused on a petition by the Empowerment Fund for Nigerian Youth Initiative and the Niger Delta Youth Council of Nigeria, which accused Binance of several financial crimes.
Despite being invited by the committee to respond to these allegations, the CEO of Binance failed to appear, leading to the recommendation for arrest. The committee’s decision was based on the company’s refusal to attend the hearing, which was seen as a disregard for the committee and the Nigerian people.
Binance’s legal counsel, Mr. Senator Ihenyen, stated that the company had responded in writing to all allegations and was willing to provide further written responses if necessary. However, the company expressed concerns over the safety of its officials in Nigeria, following the recent arrest of two senior Binance officials by the office of the National Security Adviser.
The committee, chaired by Rep. Ginger Obinna (LP-Abia), resolved not to entertain legal representation from Binance and insisted that the company’s leadership should be arrested and brought before the committee to answer questions regarding the grave allegations.
The allegations include involvement in terrorism financing, money laundering, and tax evasion. The committee’s recommendation to issue a subpoena and a warrant for the arrest of Binance executives will be presented to the House of Representatives for further action.
This development highlights the Nigerian government’s increasing scrutiny of cryptocurrency operations and the importance of regulatory compliance for companies operating in the financial sector. The outcome of this case could have significant implications for the cryptocurrency industry in Nigeria and potentially set a precedent for regulatory actions in other countries.
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