Scammer entity! Binance CEO says operations of Nigerian subsidiary fraudulent

Binance’s chief executive officer Changpeng Zhao, has said the subsidiary of the cryptocurrency exchange, Binance Nigeria Limited, is a “scammer entity.”

Zhao spoke in a tweet on Sunday, confirming the illegal operations of the company in Nigeria.

“Binance have issued cease and desist notice to the scammer entity ‘Binance Nigeria Limited’. Don’t believe everything you read in the news,” Zhao tweeted.

Zhao’s position comes one week after the Securities and Exchange Commission declared the operations of Binance Nigeria Limited illegal in the country.

According to the commission, the cryptocurrency platform had been actively promoting its web and mobile-enabled platforms to Nigerians.

The commission said the company is neither subject to its regulations nor registered.

“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.

“As the regulator with the statutory mandate of investor protection, the commission urges Nigerians to be wary of investing in crypto assets, and crypto-asset related financial products and services if the service provider/its platform is not registered or regulated by the commission,” SEC said.

Meanwhile, Binance, the world’s largest crypto trading platform, is facing a series of lawsuits, as it plans to exit the Netherlands, Cyprus, Canada, and Australia.

The company is being charged by the U.S. Securities and Exchange Commission for allowing the trading of unregistered tokens.

Last year, the crypto firm announced plans to form a recovery fund to help crypto projects facing a liquidity crisis.