- An illegal entity called Binance Nigeria Limited has operated in the African nation.
- The Nigerian SEC issued a warning to investors about the fraudulent entity
- Changpeng Zhao (CZ), the CEO of Binance, has issued a cease-and-desist notice
YEREVAN (CoinChapter.com) — Changpeng Zhao (CZ), the CEO of Binance, has warned that the activities of ‘Binance Nigeria Limited’ are fraudulent. According to his warnings, the entity has illegally masqueraded as a genuine subsidiary of the largest cryptocurrency exchange.
Zhao took to the social media site Twitter to share his concerns. He also announced that his team has already issued cease & desist notice to the Nigerian imposter. The crypto mogul further asked followers not to believe everything they see in the press about the company.
SEC terms Binance operations in Nigeria illegal
Zhao’s statement comes ten days after the Securities and Exchange Commission (SEC) of Nigeria declared that the operations of Binance Nigeria Limited were illegal.
According to the detailed statement from the commission, the cryptocurrency platform had been actively soliciting Nigerians to trade in cryptocurrencies through its web and mobile-enabled platforms.
Warning investors and traders to exercise caution, the commission further confirmed that it is not regulating the company.
“Binance Nigeria Limited is neither registered nor regulated by the commission and its operations in Nigeria are therefore illegal. Any member of the investing public dealing with the entity is doing so at his/her own risk,”the SEC said.
The financial watchdog also asked the illegal Binance imposter “to immediately stop soliciting Nigerian investors in any form whatsoever.”
In further news for the illegal Binance company, the SEC added that it would collaborate with other Nigerian regulators to see if it can take further regulatory actions.
Meanwhile, Binance, the real company, is caught in a tussle with the US Securities and Exchange Commission. The Gary Genlser-led organization has accused CZ and his team of allowing the trading of unregistered tokens.