The Nigerian government has taken legal action against cryptocurrency exchange Binance and two of its executives for alleged money laundering and tax evasion. The court hearing, held in Abuja, saw only Tigran Gambaryan, an American citizen and Binance’s head of financial crime compliance, present as the company’s regional manager, Nadeem Anjarwalla, remains at large after fleeing custody. Nigeria is home to Africa’s largest crypto economy, with many citizens turning to cryptocurrencies to safeguard against inflation and currency depreciation. However, authorities have accused Binance of facilitating money laundering and terrorism financing.
Documents presented in the Federal High Court in Abuja outlined charges of operating without the required license, unlawfully negotiating foreign exchange rates, tax evasion, and concealing the origin of illegal proceeds and revenue amounting to $35.4 million against Binance and the two executives. Gambaryan, the only executive present at the court hearing, was escorted by officials from the anti-corruption agency. Binance has not yet commented on the allegations. Gambaryan and Anjarwalla were initially arrested on February 26, and their trial has been marred by accusations of illegal detention and passport seizure.
Reports from local media suggested that the Nigerian government had demanded the identities of citizens trading on the Binance platform. The court in Abuja adjourned the money laundering trial until April 8, following a dispute between Gambaryan’s lawyer and the public prosecutor regarding Gambaryan’s ability to represent Binance in the case without the company’s permission. The prosecutor argued that Gambaryan, as the head of financial crime compliance, was a representative of Binance. The legal proceedings against Binance and its executives shed light on the government’s crackdown on cryptocurrency-related activities in Nigeria and its efforts to curb money laundering and tax evasion.
The outcome of the trial will have significant implications for the cryptocurrency industry in Nigeria and may impact the regulatory environment for crypto exchanges operating in the country. The charges against Binance and its executives highlight the challenges faced by authorities in regulating the burgeoning crypto sector, which has gained popularity among Nigerian citizens seeking alternative financial solutions. As the trial unfolds, stakeholders in the cryptocurrency industry will closely monitor the legal proceedings and their implications for the future of crypto trading in Nigeria. The case underscores the need for clear regulations and oversight in the crypto space to prevent illicit activities and protect investors.
