Binance, a leading cryptocurrency platform, has disclosed that unidentified individuals in Nigeria demanded substantial payments in digital currency to resolve issues the company faced in the country, according to Richard Teng, the firm’s chief executive officer (CEO).
In a blog post published on Tuesday, Teng recounted the challenges Binance encountered with the Nigerian government, including the detention of two top executives and criminal charges of tax evasion filed against the company.
The executives, Nadeem Anjarwalla and Tigran Gambaryan, were detained on February 28 as part of a probe into alleged illegal operations and foreign exchange rate manipulations.
Following this, Nigeria’s government levied tax evasion charges against Binance on March 25, coinciding with Anjarwalla’s escape from detention.
Teng detailed how Binance attempted to engage with Nigerian authorities, including a meeting on January 8 in Abuja, where criminal allegations were raised against the company.
Despite repeated requests, Binance claimed it had not received details of the allegations.
He said: “There were a number of reasons for that, including the sensitivity of the information and getting the opportunity to see the allegations in full and prepare a thorough substantive response.
“The meeting ended with the Chair confirming they would consider the matter and revert through Binance’s local counsel.
“However, as our employees were leaving the venue, they were approached by unknown persons who suggested to them to make a payment in settlement of the allegations.
“Later that day, our local counsel — representing us at that time — was summoned by the Committee through someone purporting to be their agent, who relayed the Committee’s terms and instructed our local counsel to advise us.
“Counsel reported back that he had been presented with a demand for a significant payment in cryptocurrency to be paid in secret within 48 hours to make these issues go away and that our decision was expected by the morning.
“Our team grew increasingly concerned about their safety in Nigeria and immediately departed.”
However, Binance declined the payment request, viewing it as illegitimate. Teng emphasized that any settlement negotiations must involve seeing the relevant petition or details of all allegations and be conducted officially, recorded in writing, and signed by all relevant parties.
The CEO expressed concern for the safety of Binance employees in Nigeria, leading the team to depart immediately.
