Cryptocurrency exchange giant, Binance, facing charges for alleged $35.4million money laundering and tax evasion in Nigeria, has been fined about C$ 6 million ($4.38million) by Canada’s anti-money laundering agency for violating the country’s money laundering and terrorist financing laws.
The Financial Transactions and Reports Analysis Centre of Canada announced on Thursday that Binance failed to register as a foreign money services business with the intelligence body despite several deadlines.
According to Reuters, the Canadian anti-money laundering agency added that Binance, which ceased operations in Canada last year, failed to report receiving virtual currency worth C$10,000 or more on 5,902 separate occasions between June 1, 2021, and July 19, 2023. Binance did not immediately respond to Reuters’ request for comment.
Meanwhile, senior authorities within the Federal Government accused Binance CEO Richard Teng of blackmail over a claim that unknown individuals in Nigeria demanded a $150 million cryptocurrency bribe from the company’s representatives.
Binance And Nigerian Government
Top Federal Government sources, who were not authorized to speak, told the correspondent in confidence in separate interviews on Tuesday.
Senior executives in the Office of the National Security Adviser noted that the Finance CEO’s claim was unfounded. One source said, “Did he mention a name?
“Since he didn’t mention a name, why should anyone be worried? Why should anyone waste their time if someone made an unfounded allegation but couldn’t mention any name?”
Another source noted, “If someone would say something like this, they should be able to mention the people.
“It’s not worth our time; anyone can say anything, but as long as they can’t substantiate it, it’s a waste of time. He should mention names; if not, all he’s saying is rubbish.”
Two other Federal Government sources at the Economic and Financial Crimes Commission accused the Binance CEO of blackmailing the Nigerian government.
They noted that Teng’s claim was frivolous, adding that the Binance CEO’s action was the modus operandi of foreign personalities and corporations facing legal charges in Nigeria and other African countries.
One source noted, “It’s not only the EFCC that is prosecuting or investigating Binance over its atrocities against Nigeria.
“There are allegations of money laundering and tax evasion, amongst others, against the company, and several federal government agencies are probing the company’s activities in the country.
“But the latest comment about the alleged request for bribery by the Binance CEO is a blackmail against the federal government.
“That is the modus operandi of international corporations and individuals facing charges in Nigeria or anywhere else in Africa.”
Another source said, “It’s the tradition of these international players to blackmail the country whenever they’re caught. What’s the correlation between the alleged request for a bribe and the allegations brought against Binance?
“The facts are there – they evaded tax; their platform is being used to launder money, so why aren’t they facing the facts? The claim is frivolous and a mere blackmail against the government.”
Jerrymusa.com reports that former Binance CEO Changpeng Zhao was sentenced to four months in prison in the United States. Zhao pleaded guilty in November 2023 to a money laundering charge. A United States District Judge, Richard Jones, said in court last Tuesday that Zhao has also satisfied the requirement of paying $50 million in fines.
The 47-year-old admitted to violating the Bank Secrecy Act by willfully failing to set up an effective anti-money laundering system at Binance.
Zhao founded and ran the cryptocurrency exchange as CEO from July 2017 to November 2023.
In March, it was reported that a U.S. district court ordered Zhao to surrender his Canadian passport and notify the court before traveling within the country.