Binance is defending itself against an escalating crackdown by Nigerian authorities, who have detained two of the crypto exchange's employees and are demanding user data in a widening confrontation over digital assets.

In a lengthy statement shared on its Blog, Binance detailed its efforts to cooperate with Nigerian law enforcement and regulators while also pushing back against the "unprecedented" measures being taken.

"We are proud that Binance has become one of the most trusted platforms among crypto users in the country and we believe we are rewarded with that trust because of our efforts to give them the best trading experience while keeping their funds safe," the exchange said.

But the situation has rapidly deteriorated in recent weeks. Nigerian security forces detained two Binance staffers - Nadeem Anjarwalla, the Africa regional manager, and Tigran Gambaryan, a former U.S. federal agent - last month after they flew to Abuja seeking to resolve a ban on Binance's website.A Wired report also claims authorities have stripped the executives of their passports and are effectively holding them hostage.

NODO reported today that the Nigerian government is demanding data on Binance's top 100 Nigerian users and detailed transaction records going back six months. No formal charges have been filed.

Relatives are calling on the U.S. government to help negotiate the release of Anjarwalla and Gambaryan, who remain in custody at the office of Nigeria's National Security Adviser.

Nigeria's hardline approach follows the country's decision in February to block access to major crypto exchanges like Binance, Kraken, and Coinbase, accusing them of enabling P2P marketplaces that fueled the naira’s freefall.

In its statement, Binance highlighted its "policy of cooperation" and detailed an extensive track record of promptly responding to hundreds of information requests from Nigerian agencies like the Economic and Financial Crimes Commission to assist investigations into money laundering, fraud, and other crimes.

The exchange also said it has proactively engaged with Nigerian authorities through training sessions in recent months on topics like crypto investigations and following money flows on blockchains.

"These trainings and sessions are unprecedented within the cryptocurrency industry," Binance claimed. "There is no other exchange that has committed to such close proactive cooperation with law enforcement."

While maintaining it takes promoting "responsible growth" of crypto seriously, Binance framed the Nigerian crackdown as potentially stifling innovation and inclusion at a time when digital assets have seen booming adoption in Africa's largest economy.

"Our hope is that we can support the continued growth of crypto so that it can support people, while we work collaboratively with law enforcement around the world to ensure the financial system is safe," the exchange said.

Nigeria's actions have sparked backlash from the country's crypto community and industry groups who have warned heavy-handed enforcement could push legitimate players underground. A coalition of local exchange founders also previously pushed for Binance sanctions.

Binance halted trading of the naira against Bitcoin and stablecoins on its platform last month amid the escalating standoff. While expressing hopes for "constructive engagements" going forward, the exchange's emphatic statement signals it will do what it takes to win the government over, given the company’s expressed interest in the Nigerian market.

“Even though Nigeria is not yet one of Binance’s top markets, we believe it holds extraordinary potential and we hope to continue to invest there,” the statement read.