Cryptocurrency giant, Binance, is facing new trouble in Nigeria, as the country’s parliament has threatened to issue a warrant of arrest on the company’s executives.
The House of Representatives Committee on Financial Crimes issued the threat on Monday during an investigative hearing.
The panel had summoned the Managing Director of Binance, Richard Teng, in a letter dated 12 December 2023, but he did not honour the invitation.
However, the company has been sending its Nigerian lawyer, Senator Ihenyen, to appear before the committee.
At the resumption of the hearing on Monday, the lawmakers once again rejected Mr Ihenyen’s representation, stating that Mr Teng or any other member of the senior management team must appear before the committee.
The Chairman of the Committee, Ginger Onwusibe (LP, Abia), announced that the panel would issue a warrant of arrest on the executives for failing to appear before it.
The threat by the parliament is coming despite the detention of two other senior officials of Binance.
PREMIUM TIMES reported the arrest of two Binance officials by Nigerian authorities over allegations of “illegal transactions” in Nigeria.
The Nigerian government is demanding at least $10 billion as retribution from Binance amid a crackdown on the crypto exchange platform in desperate moves to salvage the value of the naira, the nation’s currency.
Background
Two groups, Empowerment for Unemployed Youths Initiative, and Niger Delta Youths Council, had in December 2023 written a petition to the National Assembly over alleged illegal activities by Binance.
The committee subsequently wrote a letter to Binance, calling for an appearance before it. However, Binance sent its lawyer, Mr Ihenyen.
The committee rejected the appearance of Mr Ihenyen, stating that executives of Binance must appear before it.
Binance executives are apprehensive about coming to Nigeria
In his speech, Mr Ihenyen said Binance executives would have appeared in person before the committee, but that the recent arrest of the two of its officials is causing concerns at the company’s headquarters.
“The situation that Binance has been faced with, particularly in the last seven days, has been a very difficult one.
“These two Binance executives are still in custody. It has been extremely difficult for Binance to mobilise other executive members of the company to Nigeria because there is a genuine concern about their safety and security,” he said.
The arrest warrant
The argument by the lawyer was not enough to persuade the lawmakers, who insisted that the management of Binance must appear in person.
Mr Onwusibe said the House will take action on warrant of arrest against the company.
“Binance is not here. We have taken a position on it in our last sitting that we are not going to entertain legal representation from Binance, and that position stands.
“Based on the fact that Binance is not here, we need to make a recommendation to the House of Representatives for the House to invoke its powers of subpoena to issue a warrant for the leadership of Binance to be arrested and brought to this committee to answer questions of the grave allegations levelled against them in the petitions brought to us by the Empowerment for Unemployed Youths and Niger Delta Youths Council.
“This committee has resolved to recommend to the House to invoke its constitutional powers by issuing a subpoena and a warrant for Binance executives to be arrested and brought to this committee to answer these questions related to financing of terrorism, money laundering and other financial crimes as stated in the petition, including evasion of tax,” the lawmaker said.
He stated that “Binance has been operating in the financial space of this country for more than six years, and they have not had fewer than 20 million Nigerians that they are exploiting.”
Position of the law on arrest warrants
Section 89 of the Constitution gives the National Assembly the power to issue a warrant of arrest to compel appearance for the purpose of investigation.
“For the purposes of any investigation under section 88 of this Constitution and subject to the provisions thereof, the Senate or the House of Representatives or a committee appointed in accordance with section 62 of this Constitution shall have power to –
“Issue a warrant to compel the attendance of any person who, after having been summoned to attend, fails, refuses, or neglects to do so and does not excuse
such failure, refusal, or neglect to the satisfaction of the House or the committee in question and order him to pay all costs which may have been occasioned in compelling his attendance or by reason of his failure, refusal, or neglect to obey the summons.”
It is not clear how the lawmakers intend to enforce this arrest warrant as the management team of the company is not based in Nigeria.
=================
Cryptocurrency giant, Binance, is facing new trouble in Nigeria, as the country’s parliament has threatened to issue a warrant of arrest on the company’s executives.
The House of Representatives Committee on Financial Crimes issued the threat on Monday during an investigative hearing.
The panel had summoned the Managing Director of Binance, Richard Teng, in a letter dated 12 December 2023, but he did not honour the invitation.
However, the company has been sending its Nigerian lawyer, Senator Ihenyen, to appear before the committee.
At the resumption of the hearing on Monday, the lawmakers once again rejected Mr Ihenyen’s representation, stating that Mr Teng or any other member of the senior management team must appear before the committee.
READ ALSO: Nigeria govt slams $10 billion fine on Binance
The Chairman of the Committee, Ginger Onwusibe (LP, Abia), announced that the panel would issue a warrant of arrest on the executives for failing to appear before it.
The threat by the parliament is coming despite the detention of two other senior officials of Binance.
PREMIUM TIMES reported the arrest of two Binance officials by Nigerian authorities over allegations of “illegal transactions” in Nigeria.
The Nigerian government is demanding at least $10 billion as retribution from Binance amid a crackdown on the crypto exchange platform in desperate moves to salvage the value of the naira, the nation’s currency.
Authorities in Nigeria say some users have used the Binance platform for criminal activities such as money laundering and currency speculation. They are also accusing the cryptocurrency firm of operating illegally in Nigeria in violation of the country’s laws.
Details to follow…
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
TEXT AD: Call Willie – +2348098788999