Binance faces escalated legal charges in Nigeria over $35.4 million money laundering allegations

The outcome of the Nigerian case could significantly impact Binance’s operations in Africa’s largest economy and influence the broader debate on cryptocurrency

The Economic and Financial Crimes Commission (EFCC) has intensified its legal battle against Binance. Photo/Courtesy.
The Economic and Financial Crimes Commission (EFCC) has intensified its legal battle against Binance. Photo/Courtesy.

The Economic and Financial Crimes Commission (EFCC) has intensified its legal battle against Binance Holdings Limited and its African executive, Nadeem Anjarwalla, over allegations of laundering $35.4 million and operating without proper licensing in Nigeria.

The amended six-count indictment, presented before Justice Emeka Nwite at the Federal High Court in Abuja, accuses Binance and Anjarwalla of concealing proceeds from unlawful activities in violation of Nigeria’s Money Laundering Prevention and Prohibition Act of 2022.

The charges also cite Binance’s operation as an unlicensed financial entity under the Banks and Other Financial Institutions Act of 2020 and engaging in unauthorized foreign exchange transactions against the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act.

Anjarwalla, who allegedly fled detention earlier this year, remains at large. In contrast, another Binance executive, Tigran Gambaryan, was discharged in October after diplomatic interventions citing health concerns. In the absence of the defendants, Justice Nwite entered a not-guilty plea on their behalf, a common practice under Nigerian law.

Binance’s legal woes in Nigeria come amid increased regulatory scrutiny on cryptocurrency activities. Earlier this year, the Central Bank of Nigeria (CBN) labeled cryptocurrency trading a national security threat, prompting fintech companies to freeze accounts linked to crypto transactions.

The CBN also criticized Binance for offering financial services such as deposits and withdrawals, which it claims are exclusive to licensed banks.

Dr. Olubukola Akinwunmi, the CBN’s Head of Payment Policy and Regulation, previously testified against Binance, emphasizing that the company’s operations undermined the integrity of Nigeria’s financial system.

In February 2024, both Anjarwalla and Gambaryan were detained by authorities. While Gambaryan was released in October, Anjarwalla’s escape has intensified the EFCC’s efforts to hold Binance accountable. The EFCC highlighted that Binance’s operations violate anti-money laundering regulations, which have recently led to fines for two other crypto firms totaling $30,000.

The court has scheduled further hearings for November 25, 2024, and February 25, 2025, allowing more time for evidence presentation and cross-examinations. With the defendants absent, the EFCC faces additional challenges in building its case.

This legal battle adds to Binance’s growing list of global regulatory challenges. In the U.S., the company has faced allegations of facilitating unregistered securities trading, leading to heightened scrutiny from American regulators.

The outcome of the Nigerian case could significantly impact Binance’s operations in Africa’s largest economy and influence the broader debate on cryptocurrency regulation across the continent.

As Nigeria grapples with the rise of digital currencies, this case underscores the ongoing tension between innovation and regulatory oversight in one of Africa’s fastest-growing financial markets.

Zeen is a next generation WordPress theme. It’s powerful, beautifully designed and comes with everything you need to engage your visitors and increase conversions.

Zeen Subscribe
A customizable subscription slide-in box to promote your newsletter

I consent to the terms and conditions