Forex Crisis: Arrest Of Binance Executives Is Proves Government Is Working — Obanikoro

Arresting Binance Executives demonstrates government's operation says Obanikoro

The arrest and detention of two executives of the cryptocurrency trading website Binance, according to former minister of state for defense Musiliu Obanikoro, is proof that President Bola Tinubu's administration is making an effort to address security concerns in Nigeria.

The Lagos Central Senatorial District was represented by Obanikoro, a former lawmaker, from 2003 to 2007. Obanikoro was a guest on Channels Television's Sunrise Daily program on Wednesday.

“I don't want to speak to some of the things that the security people are doing. Among them which we also saw last week was the arrest that the NSA (National Security Adviser) made of those foreigners who are also helping to devalue our currency in crypto coins under illegal manner.

“That is an evidence that this is a government is working,” He Said.

All Progressives Congress (APC) chieftain and leader of the President's party stated that the “prevailing” terrorism, banditry, kidnapping, and other security issues in the nation cannot be attributed to the current administration because previous administrations lacked the political will to put an end to the dangerous trend.

Read: Binance Ends Services In Naira And Intends To Leave The Nigerian Market

Nigeria is experiencing economic hardship due to the removal of the gasoline subsidy, rising food inflation, currency instability, rising inflation, and high living expenses, which have sparked protests in some parts of the nation.

The value of the Nigerian naira has declined during the past nine months since the foreign exchange window was closed by the Bola Tinubu administration. The value of the naira reached an all-time low, going from roughly N700/$1 in May of last year to over N1500/$1 right now.

Since then, the government has focused on bitcoin websites, accusing them of being speculative and imposing restrictions on them via telecom providers.

According to Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), $26 billion in suspicious cryptocurrency exchange flows went through Binance last week.

The government has demanded roughly $10 billion in compensation from the cryptocurrency platform in response to claims that it manipulated foreign exchange rates, adversely affecting the value of the naira relative to the dollar. This comes the same week that two executives from Binance were arrested in Nigeria.