Committee Chairman Ginger Onwusibe warned that if Binance ignores the subpoena, the committee will exercise its constitutional authority to take necessary action.
This Monday, March 4, Binance CEO Richard Teng must appear before the Nigerian authorities to offer statements. The Financial Crimes Committee of the Nigerian House of Representatives is investigating the cryptocurrency exchange for violation of several laws.
According to a local news outlet, The Punch, the Chairman of the Committee, Ginger Onwusibe, on Friday, March 1, in a panel, issued a seven-day ultimatum to the management of Binance Holdings LTD. to appear before the committee by March 4, 2024.
The governor of the Central Bank of Nigeria (CBN) expressed concerns on February 27 about Binance, an online cryptocurrency exchange, alleging “suspicious flows” of funds through the exchange in 2023.
The conflict between the Nigerien authorities and the exchange is becoming an issue of important magnitude. Recently, government spokespersons of that nation denied an alleged fine that they had applied against the firm. Some news portals reported that the crypto trading company had been penalized by $10 billion.
In any case, if Teng does not appear at this new appointment, the Nigerian authorities warn that they will take new measures. In this regard, the chairman of the aforementioned committee, Ginger Onwusibe, stated that they could invoke their constitutional powers to take appropriate measures.
Onwusibe’s Warmings and Concerns
Onwusibe reportedly warned that if Binance Holdings ignores the call, the committee will be forced to use its constitutional authority to implement necessary actions. According to The Punch, the committee, through a letter dated December 12, 2023 and signed by its president, Onwusibe, called for a hearing with the Managing Director of Binance, scheduled for December 18, 2023.
He expressed his disappointment with Binance Holding Limited CEO Teng for not attending despite multiple invitations. Onwusibe emphasized that this relates to the complete disregard of existing laws regulating commercial and financial operations in the country.
Onwusibe reiterated the committee’s commitment to combating financial crimes, stressing that the constitution empowers them to protect Nigerians from financial crimes, especially those involving foreign companies.
What Happens if Binance CEO Ignores the Subpoena Again?
Most likely, the CEO of Binance will not appear at the new meeting of the Nigerian authorities, which would be a negative scenario for the firm. The exchange pleaded guilty to these same crimes in the US at the end of 2023.
After the guilty plea was known, a request for appearance was sent to the executive from Nigeria. It requested a hearing to declare the ways in which the exchange violated the laws of the African country. However, as already stated, Teng ignored the request for presentation.
Onwusibe expressed the following in this regard:
“The constitution of the Federal Republic of Nigeria has empowered us to protect Nigerians from financial crimes, especially committed by foreign companies. The accusations of terrorist financing, money laundering, and tax evasion, among others, leveled against Binance are quite damning.”
The reaction of the Binance CEO to this new problem that is already widely covered in the media and that could play against the credibility of the firm is pending.
Last week, the country’s telecommunications regulator ordered companies in the sector to block digital currency exchanges. As a result, platforms such as Binance, Kraken and Coinbase were legally banned. Similarly, last week, the country’s security services detained two Binance executives. This would have been part of the investigations in this case, DLNews reported.
By Leonardo Perez
