The Office of the National Security Adviser (ONSA) has confirmed the arrest of two Binance crypto exchange platform executives as part of ongoing investigation into forex speculation and attempt to save the Naira.
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The executives whose identities remain undisclosed were arrested upon their arrival to Nigeria and detained on the orders of the National Security Adviser, Nuhu Ribadu.
According to reports, the executives were in Abuja on an invitation from the Nigerian government.
The meeting was expected to address outstanding issues between Binance and Nigeria.
When contacted, the Head Strategic Communications, ONSA, Zakari Mijinyawa confirmed the arrests but did not provide identities of the suspects.
He said, “I am confirming that the Office of the National Security Adviser, as part of ongoing operations in the FX market involving the CBN and other law enforcement and security agencies, is coordinating an interagency investigation into the operations of Binance. Outcomes from this interagency investigation will be made available in due course.”
The ONSA and the Central Bank of Nigeria (CBN) had on February 20, 2024, teamed up to clamp down on forex speculators across the country in order to address the forex crisis.
The partnership was aimed at safeguarding Nigeria’s foreign exchange market and combat speculative activities.
The partnership involves a coordinated effort with key law enforcement agencies, including the Nigeria Police Force (NPF), the Economic and Financial Crimes Commission (EFCC), the Nigeria Customs Service and the Nigeria Financial Intelligence Unit (NFIU).
The primary objective of this alliance is to systematically identify, thoroughly investigate and appropriately penalize individuals and organizations involved in wrongful activities within the FX market.
Their aim, it was learnt, was to deter malicious practices, protect investor interests, and promote sustainable economic growth.
In addition, the efforts will enhance a stable and transparent foreign exchange market, fostering investor confidence, and advancing the nation’s economic well-being.
Meanwhile, Binance, Wednesday, removed the Nigerian currency, Naira from its peer-to-peer feature.
The feature, known as the P2P market, allows users, buyers, and sellers to transact without the intervention of a third party.
Recall that the federal government had recently banned Binance in Nigeria just as it is outlawed in the UK and USA.
Channels TV news monitored by our reporter indicated that on Wednesday, the Financial Times reported that two senior executives of Binance had been detained in Nigeria.
Channels TV added that sources with knowledge of the matter had confirmed that more cryptocurrency operators will be invited to explain their operations in Nigeria.
The crackdown follows an earlier report by the Nigerian Financial Intelligence Unit (NFIU).
According to the source, the National Security Adviser, Nuhu Ribadu, is working on the report and had started implementing its recommendations.
The NFIU report had indicated the platform as a tool for terrorism financing and other criminal activities, which are affecting the Naira and national security.
The cryptocurrency operators are being invited to clear some of the illegalities on their platforms, which are aiding corruption in the country.
Just over a week ago, the federal government blocked trading on cryptocurrency platforms, asking telcos in the country to block access to their websites. Platforms affected included Binance, OctaFx, and Coinbase.
The Binance executives, an American and a British-Pakistani, who are currently being questioned, flew into Nigeria after the decision to block the platform.
A day before the news of their detention broke, on Tuesday, the governor of the Central Bank of Nigeria, Yemi Cardoso, announced that the sum of $26 billion had flowed through Binance Nigeria over the past year from unidentified sources.
“We are concerned that certain practices go on that indicate illicit flows, going through a number of these entities and suspicious flows,” Cardoso told journalists after his first Monetary Policy Committee meeting.
“In the case of Binance, in the last year, $26 billion has passed through Binance Nigeria from sources and users who we cannot adequately identify.”
According to sources familiar with the ongoing crackdown, the NSA wants to use the opportunity to set an example for others not to use their platforms for nefarious activities against the Nigerian financial system.
A task team involving the NSA’s office, the Central Bank of Nigeria, the Nigeria Police Force, the Economic and Financial Crimes Commission, the Nigeria Customs Service, and the NFIU is working to arrest currency speculators and address challenges impacting the nation’s economic stability.
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