Binance CEO Richard Teng Subpoenaed in Nigeria on Money Laundering Suspicions: Report

Binance’s new CEO, Richard Teng, joined the company in November 2023 after its founder and former CEO Changpeng Zhao pleaded guilty in the US to violating money laundering laws. As the waters seemed to settle around Binance’s internal turmoil, the new CEO may also have found himself in a similar situation. The Financial Crimes Commission of the Nigerian House of Representatives has reportedly summoned Teng on suspicions of the stock exchange’s potential involvement in money laundering and terrorist financing.

As cryptoculture grows rapidly in South Africa, governments are tightening their vigilance on crypto-related activities. The Central Bank of Nigeria (CBN), in this case, has alerted the Nigerian authorities about Binance, claiming that the platform may have played a role in suspicious fund transfers.

Ginger Onwusibe, the chairman of the Financial Crimes Commission, has demanded that Binance officials, including Teng, appear before Nigerian authorities. report by a local Nigerian publication, Punch said over the weekend. According to the report, Binance has been given a seven-day ultimatum to meet with Nigerian authorities by Monday, March 4. However, no details of Teng’s meeting with the Nigerian authorities have been reported so far.

Onwusibe, in the summons to Binance, also reportedly warned the exchange that it may take appropriate measures to address the concerns if representatives of the firm fail to schedule a meeting. The CBN has red-flagged crypto exchange platform Binance for abusing it for money laundering and other illegal activities.

“It is also our duty to do everything in our power to protect Nigerian investors from predatory firms and no amount of distraction and manipulation can stop us. The allegations of terrorist financing, money laundering and tax evasion among others leveled against Binance are damning enough,” Punch quoted Onwusibe as saying.

Nigeria is taking steps to prevent financial crimes in the nation, especially now that its economy is moving into a recession-like climate. The country is becoming increasingly strict regarding relations with foreign companies. Calling out Binance, Onwusibe revealed that the company has neither registered its business in Nigeria nor set up an office to deal with user complaints.

“You cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service,” Onwusibe was quoted as saying.

This is not the first time Binance has come under the legal scanner. On November 30, the Securities and Exchange Commission of the Philippines decided to block access to the world’s largest crypto exchange. At the time, the Philippines claimed that Binance had not registered its operations with authorities.