Binance Blocks 128 Private Accounts In Nigeria, Indicates Money Laundering

Binance freezes 128 accounts in Nigeria. (photo: doc. Unsplash)

JAKARTA - Binance, the world's largest cryptocurrency exchange, has restricted or blocked the personal accounts of 281 users in Nigeria. They reasoned this was a necessity to comply with international money laundering laws

Binance CEO Changpeng Zhao said in a letter to Nigerian customers dated January 29 that the decision to restrict some of these private accounts was to ensure user safety. Meanwhile, more than a third of the accounts affected were restricted at the request of international law enforcement.

"Currently, we have completed 79 cases and are continuing to work through the others. All cases not related to law enforcement will be resolved within two weeks," said Changpeng Zhao, as quoted by Reuters.

Despite central bank bans, Nigerians continue to turn to crypto for business, to protect their savings as the naira loses value, and to send payments overseas because it is often difficult to get US dollars locally.

But it also raises suspicions of using crypto as a way to launder money. This has also forced Binance to restrict and even block accounts suspected by the government.