Alleged Financial Crimes: Reps Panel Recommends Arrest of Binance Executives

The House of Representatives Committee on Financial Crimes is poised to take decisive action against Binance Holdings Limited following its failure to attend a public hearing regarding serious allegations, including terrorism financing, money laundering, tax evasion, and other financial crimes.

Binance Holdings Limited, a prominent digital assets exchange operator in Nigeria, has reportedly operated in the country for over six years without adhering to financial regulatory frameworks, leading to accusations of exploitation and various financial improprieties.

The Committee, prompted by a coalition of civil society organizations spearheaded by the Niger Delta Youth Council Worldwide and the Empowerment for Unemployed Youths, initiated the inquiry.

During the public hearing in Abuja, Committee Chairman Ginger Onwusibe expressed dismay at the absence of Binance’s Chief Executive, Mr. Richard Teng, who declined multiple invitations to appear before the committee.

Despite the summoning of Teng on December 12, 2023, through a letter signed by Chairman Onwusibe, the company’s legal team, led by Senator Ihenyen, was sent in lieu of the management. However, the committee rejected the legal representation.

Senator Ihenyen explained that Binance executives refrained from appearing due to the recent arrest of two other executives upon their arrival in Nigeria by the Office of the National Security Adviser (ONSA).

In response to Binance’s non-compliance, Chairman Onwusibe reiterated the committee’s commitment to combat financial crimes, stating, “The committee will be forced to recommend to the House to arrest Binance executives since they have failed to appear before the committee.”

He emphasized the committee’s stance against legal representation, stating, “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.”

Considering the gravity of the situation, the Committee resolved to recommend to the House of Representatives to exercise its constitutional powers by issuing a subpoena and a warrant for the arrest of Binance executives.

The recommendation includes the demand for the executives to appear before the committee to address the allegations concerning terrorism financing, money laundering, tax evasion, and other financial crimes brought to light by the petitions.

Senator Ihenyen, representing Binance’s legal team, pleaded with the honorable committee to consider the company’s response, emphasizing their cooperation in addressing the demands made by the committee.