House of Reps Summons Binance CEO Over Terrorism Financing Allegations, Issues Stern Ultimatum

House of Reps Summons Binance CEO Over Terrorism Financing Allegations, Issues Stern Ultimatum

In a bold move, the House of Representatives Committee on Financial Crimes has summoned Richard Teng, the CEO of Binance Holding Limited, to appear before them regarding allegations of money laundering and financing of terrorism. Chairman Ginger Onwusibe has issued a strict seven-day ultimatum for Teng to comply, setting the deadline for March 4, 2024.

This summons comes amidst the federal government’s ban on major online crypto platforms to curb forex market manipulation and illicit fund movements. Binance, a prominent online cryptocurrency exchange, has been accused by the Central Bank of Nigeria of involvement in money laundering activities.

Expressing frustration at Teng’s repeated refusal to attend previous invitations, Onwusibe emphasized the gravity of the situation, noting Binance’s apparent disregard for Nigeria’s laws governing business and financial operations.

The committee, led by Onwusibe, had initially summoned the Managing Director of Binance in December 2023, but Teng failed to attend the hearing. Onwusibe stressed the committee’s commitment to combating financial crimes, particularly those perpetrated by foreign entities, to safeguard Nigerian citizens and protect the nation’s finances.

Highlighting the urgency of the matter amidst economic challenges like recession, Onwusibe underscored the serious allegations against Binance, including terrorism financing, money laundering, and tax evasion. He emphasized the need to preserve tax revenues, prevent channels for funding terrorism, and protect Nigerian investors from exploitative practices.

Onwusibe asserted that accountability for tax payments and the establishment of physical offices for addressing consumer grievances are non-negotiable, signaling an end to exploitation and a firm commitment to holding perpetrators accountable.

He declared, “The era of exploitation is over, and all culprits must be held accountable.” With over 10 million Nigerians on the platform, Onwusibe stressed that Binance cannot operate without paying taxes or providing avenues for Nigerian customers to address grievances, reaffirming the committee’s resolve to ensure compliance with the law and protect the interests of Nigerian citizens.