Binance, the world’s largest cryptocurrency exchange, restricted over 281 accounts of Nigerian Crypto users, citing a need to comply with international money laundering laws, its CEO said. On January 26th, many Nigerian users had complaints that their accounts had been suspended for no apparent reason. In response, Binance Africa issued an official statement on Twitter, stating that any Nigerian user who believes his account has been locked or suspended in error can fill out a form to reverse this.
Binance Exchange said via a Twitter threat that, in normal circumstances, the exchange suspends withdrawals in the event of any suspicious activity in order to protect users’ assets, but that the current steps are in response to a court order.
Suspended accounts, according to Binance Africa, are only those linked to illegal activity.
“If a user believes he is inadvertently experiencing this issue, he can fill out the form and we will review the subject.”
The accounts that have been frozen by enforcement agencies will be contacted, and they will be required to take further steps.
Changpeng Zhao, CEO of Binance said in a letter to Nigerian customers dated January 29 that the decision to restrict some personal accounts was to ensure user safety while more than a third of the affected accounts were restricted at the request of international law enforcement.
“Currently, we have resolved 79 cases and continue to work through others. All non-law enforcement-related cases will be resolved within two weeks,” Changpeng Zhao said.
Many users have spoken out against Binance, claiming that the exchange is attempting to implement fraud, while the exchange has stated that it is part of the enforcement department’s work.