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Binance CEO Changpeng Zhao (CZ) issued a statement that Binance has officially issued a cease and desist notice for the fraudulent organization known as Binance Nigeria Limited.
On Sunday, June 18, the CEO made the announcement on Twitter. However, it is worth noting that on June 9, the Nigerian Securities and Exchange Commission (SEC) issued a circular stating that Binance Nigeria Limited is illegal in the country.
According to reports, a Binance spokesperson responded by stating that the entity mentioned in the circular is not affiliated with them. They expressed their intention to seek clarification from the Nigerian SEC and reaffirmed their commitment to working with them on the next steps.
Binance have issued cease & desist notice to the scammer entity “Binance Nigeria Limited”.
Don’t believe everything you read in the news. ♂️
— CZ Binance (@cz_binance) June 18, 2023
During this period, the Nigerian SEC circular cast a shadow over the prospects for Binance. While Binance has not been in touch with Binance Nigeria Limited as mentioned in the circular, the company has also faced legal action from the US Securities and Exchange Commission (US SEC) at the same time. The US Commission has filed 13 charges against Binance companies and their CEO, Changpeng Zhao.
Some of the allegations include dealing with unregistered exchanges, broker-dealers and clearing agencies, and misleading trade controls. The US Securities and Exchange Commission said that despite Binance and Zhao having raised $11.6 billion from US customers, they were unable to register as an exchange, broker-dealer or clearing company. Binance Holdings Limited was also accused of providing access to Binance.com to large US investors.
Recently, US Judge Amy Berman Jackson approved on June 17 the agreement reached between Binance. US, Binance and the Securities and Exchange Commission. This agreement resulted in the cancellation of the previous temporary restraining order (OR) aimed at freezing all assets of Binance. US.
Related: Binance CZ CEO Says SEC Emergency Assistance Request Unfounded
Binance, which is available in approximately 100 countries, registered its Binance Holdings Limited headquarters in Georgetown, Cayman Islands in 2017. In 2019, she also registered Binance Investments Company in Mahe, Seychelles.