Nigerian authorities have vehemently denied allegations by Binance’s CEO, Richard Teng, accusing unnamed officials of soliciting a $150 million cryptocurrency bribe. 

The Nigerian Information Ministry spokesperson, Rabiu Ibrahim, described the claims as baseless and an attempt by Binance to divert attention from the criminal charges it faces in Nigeria.

Binance and two executives are embroiled in separate trials for tax evasion and money laundering, totalling over $35 million. Teng’s blog post alleged that Nigerian officials demanded bribes to halt investigations, a claim the authorities strongly refuted.

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Response from Nigerian Authorities

Ibrahim reiterated that Binance is under investigation in Nigeria for facilitating illegal activities such as money laundering and terrorism financing. He characterised Binance’s bribery allegations as an act of blackmail and an attempt to undermine the legal proceedings in Nigeria.

Ibrahim said, “It is nothing but a diversionary tactic and an attempted blackmail by a company desperate to obfuscate the grievous criminal charges it is facing in Nigeria. 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,” he said.

Binance’s Counterclaims

Binance has accused Nigeria of setting a dangerous precedent by detaining its executives after inviting them for talks. The company claims that Nigeria is using the investigation to suppress the crypto industry, a sentiment that Teng’s blog post echoed.

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Teng had stated that “…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.”

“The leader of the group took on a hostile approach. He said the issues involving Binance were national security and made the following demands: delist naira from the Binance platform; provide granular-level detail on all Nigerian users; provide financial/tax compliance information.”

The dispute between Binance and Nigerian authorities underscores the challenges facing the cryptocurrency industry in Nigeria. If proven true, the bribery allegations could have far-reaching implications for Binance’s operations in the country and beyond.