Binance restricts 281 Nigerian crypto accounts to ‘prevent fraud’

Binance, one of the largest cryptocurrency exchanges in the world, says it restricted the accounts of 281 Nigerian users to prevent fraudulent activities and ensure the security of its platform.

There have been complaints on social media by multiple users of the exchange platform, especially Nigerians.

They alleged that they have been deprived of access to their Binance accounts without any explanation.

Reacting to the reports, Changpeng Zhao, Binance’s chief executive officer, in a letter dated January 29 and addressed to Nigerians, said 38 percent of the affected accounts were restricted at the request of international law enforcement.

“The Nigerian community is one that brings me great pride. Since the inception of Binance, Nigeria and Africa at large have been very special markets to us and for crypto. On hearing the concerns raised by the community, I decided to write to re-emphasize our commitment to you,” the statement, posted on its website, reads.

“First and foremost, we are sorry for the inconvenience caused by delays in resolving your customer support requests. User security remains our top priority.

“We love and are devoted to our Nigerian community, but we must ensure that our users are safe.

“As such, protection mechanisms such as KYC, anti-money laundering measures, collaboration with law enforcement, and account restrictions are in place to ensure our community remains protected and that fraudulent activity is prevented. This is a global approach applied in every country.

“Some 281 Nigerian accounts have been affected by these personal account restrictions with approximately 38% of these cases restricted at the request of international law enforcement.

“Regardless, we owe it to you, our users, to deliver the experience you deserve.”

Zhao disclosed that 79 cases have been resolved and the exchange will “continue to work through others”.

He said all non-law enforcement-related cases will be resolved within two weeks.

The CEO also said the exchange will devote more customer service personnel to attend to Nigerians.

“We will dedicate more CS and risk agents with a great understanding of the Nigerian market,” he added.

“Rest assured, we are working hard to attend to all customer service requests.”

In February 2021, the Central Bank of Nigeria (CBN) directed all banks to close account of persons or entities involved in cryptocurrency transactions within their systems.

The apex bank said transacting in cryptocurrencies portends “risk of loss of investments, money laundering, terrorism financing, illicit fund flows and criminal activities”.