Sunday, July 21, 2024

Binance CEO Issues Cease and Desist Notice to Banned Nigerian Entity

Changpeng Zhao, the CEO of Binance, has revealed that a cease and desist notice has been issued to Binance Nigeria Limited, a company previously associated with the crypto exchange platform. Referring to the Nigerian entity as a “scammer entity,” Zhao cautioned his followers against blindly believing news reports.

Binance Severs Ties with Banned Nigerian Entity

Changpeng Zhao, also known as CZ, recently announced that his company had taken action by issuing a cease and desist notice to Binance Nigeria Limited, an alleged affiliate of the popular cryptocurrency exchange platform. In a tweet on June 18, CZ advised his followers to be skeptical of news reports. However, he did not provide details on how the order against the “scammer entity” would be enforced.

CZ’s clarification regarding Binance’s association with the Nigerian entity comes shortly after the Nigerian Securities and Exchange Commission (NSEC) declared the operations of Binance Nigeria Limited illegal. The NSEC instructed the banned entity to cease soliciting Nigerian investors in any form. In response to the regulatory action, a spokesperson for Binance distanced the leading crypto exchange from the Nigerian company, as reported by CryptokenTop.com News.

The same report also featured comments from Ahassan Ifzal Mughal, who confirmed that Binance Nigeria Limited has no affiliation with Binance. Mughal apparently registered the entity with the intention of selling it to CZ’s Binance in the future. Mughal stated, “We are willing to hand over full control of Binance Nigeria Limited to binance.com should they choose to legally enter into the Nigerian market, and are further available to provide our legal services to them in obtaining legal regulatory compliance in Nigeria.”

While CZ’s disavowal of the “scammer entity” has raised questions, an insider in the Nigerian crypto industry suggested that Binance may have been unaware that the banned entity was operating under its name. This is supported by the presence of six Nigerian organizations using the name Binance on the Corporate Affairs Commission portal.

Senator Ihenyen, the lead partner at Infusion Lawyers, explained that illegal use of well-known brands or trademarks is a global issue faced by genuine companies and brand owners, including those in Nigeria. He revealed that his law firm has dealt with numerous cases of cybersquatting, where entities register names, domain names, or trademarks without proper authorization with the intention of reselling them for profit.

While cybersquatting is illegal in Nigeria, it is still viewed by some as a legitimate practice. Senator Ihenyen emphasized that this form of activity, known as cybersquatting, extends beyond the blockchain space.

Frequently Asked Questions (FAQs) about Binance Nigeria Limited

What is the reason behind Binance issuing a cease and desist notice to Binance Nigeria Limited?

Binance issued a cease and desist notice to Binance Nigeria Limited due to the company being associated with fraudulent activities, branding it a “scammer entity.”

What actions did the Nigerian Securities and Exchange Commission (NSEC) take regarding Binance Nigeria Limited?

The NSEC declared the operations of Binance Nigeria Limited illegal and instructed them to stop soliciting Nigerian investors in any form.

Did Binance Nigeria Limited have any affiliation with the Binance crypto exchange?

No, Binance Nigeria Limited was not affiliated with the Binance crypto exchange. Binance distanced itself from the Nigerian entity and took legal action against it.

Why did Binance disassociate itself from the Nigerian entity only after the regulatory action?

It is possible that Binance was unaware of the Nigerian entity using its name until the regulatory action was taken. The presence of multiple organizations using the name Binance in Nigeria may have contributed to this confusion.

What is cybersquatting, and how is it related to this case?

Cybersquatting refers to the unauthorized registration of names, domain names, or trademarks with the intention of reselling them for profit. In this case, the alleged scammer entity, Binance Nigeria Limited, may have engaged in cybersquatting by using Binance’s name without authorization.

Is cybersquatting illegal in Nigeria?

Yes, cybersquatting is illegal in Nigeria, but it is still practiced by some individuals or entities who view it as a legitimate way to profit from well-known brands or trademarks.

More about Binance Nigeria Limited

  • Binance CEO Tweet – The tweet by Binance CEO Changpeng Zhao regarding the cease and desist notice issued to Binance Nigeria Limited.
  • [Nigerian Securities and Exchange Commission (NSEC) Statement](Provide the link) – The official statement by the NSEC declaring the operations of Binance Nigeria Limited illegal and instructing them to stop soliciting Nigerian investors.
  • [CryptokenTop.com News Article](Provide the link) – The article reporting on Binance’s disassociation from the Nigerian entity and the comments made by Ahassan Ifzal Mughal.
  • [Corporate Affairs Commission Nigeria](Provide the link) – The Corporate Affairs Commission portal in Nigeria where multiple organizations using the name Binance are listed.
  • [Cybersquatting Explanation](Provide the link) – Information on cybersquatting and its implications in the context of unauthorized use of names, domain names, or trademarks.

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