Investigation of Binance being confirmed by a Nigerian authority
The global cryptocurrency exchange, Binance, is currently facing multiple investigations and legal actions by the Nigerian government. These accusations range from tax evasion, money laundering, economic sabotage potentially distorting the Nigerian economy by as much as $81 billion, to facilitating illicit fund flows linked to terrorism and kidnapping, and operating without regulatory approval.
The Office of the National Security Adviser (ONSA) of Nigeria is leading the investigation, with Zakari Mijinyawa, the head of strategic communications, coordinating the effort. The investigation was first reported by Nigerian news outlet Premium Times.
Binance officials were arrested in Nigeria upon the government's invitation, and the exchange confirmed that its website and other major crypto exchanges were not accessible to Nigerian users last week. This move was due to the federal government reportedly directing telecommunications service providers to restrict access to cryptocurrency exchanges operating within the country.
Commercial banks in Nigeria have also frozen accounts linked to Binance-related crypto trading activities. Despite these challenges, Nigerians still access Binance through alternative methods such as peer-to-peer trades, although Binance itself has restricted such P2P trading of Naira-crypto pairs within Nigeria.
The cases against Binance include a tax evasion suit, with the trial delayed until October 2025 due to court procedural issues. A $35.4 million money laundering prosecution has seen little progress since early 2025. An $81 billion economic distortion charge is currently stalled due to procedural problems such as misdirected complaints and legal disputes over service of criminal complaints.
Nigeria's Information Minister has accused Binance of enabling terrorists and kidnappers to funnel funds through its platform and operating without a proper license, which worsens national insecurity concerns. Additionally, Nigerian legal and regulatory authorities (EFCC and FIRS) have arraigned Binance and an executive on money laundering charges.
Binance is accused of allowing customers to arbitrarily fix US dollar to naira exchange rates, with the customers' actions allegedly contributing to the rapid devaluation of the naira. The exchange's P2P marketplace serves as an escrow to connect USDT traders and buyers. Unnamed sources suggest the ban was implemented due to belief that currency speculators and money launderers use these exchanges to manipulate the forex market.
Binance placed restrictions on purchasing USDT using the Nigerian currency last week, and these restrictions were reversed a day later. The investigation into Binance's activities in Nigeria is being conducted by multiple government agencies, but no further details have been disclosed by the ONSA.
Zakari Mijinyawa declined to provide further information about the investigation, stating that it is ongoing and that the ONSA would release more information as appropriate. This ongoing legal battle, restricted access within Nigeria, and regulatory clampdowns have left the future of Binance's operations in Nigeria uncertain as of mid-2025.
[1] Premium Times. (2025). Binance under investigation by Nigerian government over alleged tax evasion, money laundering. Premium Times. https://www.premiumtimesng.com/business/technology/446366-binance-under-investigation-by-nigerian-government-over-alleged-tax-evasion-money-laundering.html
[2] TheCable. (2025). Binance restricts Naira-crypto trading in Nigeria. TheCable. https://thecable.ng/binance-restricts-naira-crypto-trading-in-nigeria/
[3] Nairametrics. (2025). Binance under investigation by Nigerian regulators over alleged tax evasion, money laundering. Nairametrics. https://nairametrics.com/2025/05/15/binance-under-investigation-by-nigerian-regulators-over-alleged-tax-evasion-money-laundering/
[4] BusinessDay. (2025). EFCC, FIRS arraign Binance, executive over money laundering. BusinessDay. https://www.businessdayonline.com/on-the-frontline/article/efcc-firs-arraign-binance-executive-over-money-laundering/
[5] The Guardian. (2025). Binance under fire in Nigeria as regulators move against unregistered crypto exchanges. The Guardian. https://guardian.ng/business-services/binance-under-fire-in-nigeria-as-regulators-move-against-unregistered-crypto-exchanges/
- The Nigerian government is conducting an investigation into Binance, a global cryptocurrency exchange, over various charges that include tax evasion, money laundering, and economic sabotage.
- The Office of the National Security Adviser (ONSA) of Nigeria is leading the investigation, with Zakari Mijinyawa, the head of strategic communications, coordinating the effort.
- The allegations also involve facilitating illicit fund flows linked to terrorism and kidnapping, operating without regulatory approval, and potentially distorting the Nigerian economy by as much as $81 billion.
- Nigerian officials arrested Binance executives in the country upon invitation, and the exchange confirmed restricted access for Nigerian users last week due to government direction to telecommunications service providers.
- Commercial banks in Nigeria have frozen accounts linked to Binance-related crypto trading activities, yet Nigerians still access Binance through alternative methods such as peer-to-peer trades.
- The cases against Binance include a tax evasion suit, money laundering prosecutions, and an $81 billion economic distortion charge, with little to no progress in many of these charges due to procedural problems.
- The Nigerian Information Minister has accused Binance of enabling terrorists and kidnappers to funnel funds through its platform while arbitrary US dollar to naira exchange rates have contributed to the naira's rapid devaluation.
