According to the Financial Times (FT), two high-ranking executives from Binance were arrested upon their arrival in Nigeria by the Office of the National Security Adviser. This action follows the country’s imposition of a ban on multiple cryptocurrency exchanges.

The report did not specify the names of the detained executives, but sources familiar with the situation mentioned that their passports were confiscated. As of the time of reporting, Binance had not released any public statements on the matter.

The Nigerian authorities have redirected their focus towards cryptocurrency platforms due to the rapid devaluation of the naira, contributing to inflation reaching an almost three-decade high of nearly 30%. In an attempt to safeguard against the frequent depreciation of the national currency, the Nigerian government instructed telecom and internet service providers to restrict access to various crypto exchanges, including Binance, Coinbase, and Kraken.

During a recent press conference, Olayemi Cardoso, Nigeria’s central bank governor, expressed concerns about fund flows through crypto exchanges, specifically mentioning Binance. He highlighted worries over the substantial sums passing through Binance Nigeria in 2023, totaling $26 billion, from sources that the government “cannot adequately identify.”

Sources close to the situation, as reported by the FT, disclosed that Nigerian authorities have requested a list of Binance’s Nigerian users who joined the platform since its launch. However, it remains unclear if this is part of negotiations to secure the release of the detained executives.

In February, Binance implemented a limit on the selling price of Tether (USDT) on its peer-to-peer platform in Nigeria. In a blog announcement to Nigerian users on Feb. 20, the exchange emphasized its commitment to collaboration with local authorities, stating that it is “working hand in hand with local authorities, lawmakers, and regulators to ensure we act on non-compliance.”