Binance, the global cryptocurrency exchange platform, has taken decisive action against a fraudulent entity known as Binance Nigeria Limited. This move follows the release of a circular by the Nigerian Securities and Exchange Commission (SEC), which declared the illegality of Binance Nigeria Limited operating within the country.

In an official statement, Binance CEO Changpeng Zhao announced the issuance of a cease and desist notice to the fraudulent entity.

Binance Responds to Nigerian SEC Circular

On June 9, the Nigerian SEC issued a circular. This explicitly stated that Binance Nigeria Limited was operating illegally within the country. Binance promptly addressed the issue, with a spokesperson. He emphasized that the mentioned entity had no affiliation with the global cryptocurrency exchange.

Further, the spokesperson expressed the company’s commitment to seek clarification from the Nigerian SEC and cooperate with them in determining the next steps.

Nigerian flag as Binance Issues Cease and Desist Warning to Binance Nigerian Limited

Binance Faces Legal Challenges

Simultaneously, Binance finds itself entangled in a legal battle with the United States Securities Exchange Commission (SEC). The U.S. SEC has filed a total of 13 charges against Binance and its CEO, Changpeng Zhao. These charges include operating as an unregistered exchange, broker-dealer, clearing agency, and misrepresenting trading controls.

Despite reportedly earning $11.6 billion from U.S. customers, Binance and Zhao failed to register as an exchange, broker-dealer, or clearing agency, as required by U.S. regulations.

Dismissal of Temporary Restraining Order

In a significant development on June 17, U.S. Judge Amy Berman Jackson approved an agreement reached between Binance.US, Binance, and the U.S. SEC. As a result, the previous temporary restraining order, which aimed to freeze all Binance.US assets, was dismissed. This agreement marks a significant step in the ongoing legal proceedings between Binance and the U.S. SEC.

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