The Economic and Financial Crimes Commission (EFCC) is set to arraign two prominent Binance representatives, Tigran Gambaryan and Nadeem Anjarwalla, on the forthcoming Thursday, April 4th, 2024. The allegations include money laundering activities amounting to $35.4 million as well as operating without proper licensing and authorization.
Nigerian officials have initiated legal action amidst heightened scrutiny. The Federal Inland Revenue Service (FIRS) plans to prosecute Binance, alleging substantial tax evasion amounting to over NGN 13 trillion ($29.7 billion) based on 2023’s trading activity. The move coincides with broader measures taken by Nigerian authorities to address regulatory concerns.
Binance Alleged Unlicensed Operations in Nigeria
Authorities assert that Binance’s operations in Nigeria between January 2023 and January 2024 lacked proper licensing, contravening financial regulations, raising concerns about potential money laundering activities. Furthermore, evidence suggests users exploited the platform to manipulate the Naira’s value through price discovery and market manipulation tactics.
In a proactive step on March 18th, 2024, Justice Nwite of the Federal High Court mandated Binance to furnish the EFCC with comprehensive data on all Nigerian users. This directive aims to provide the EFCC with vital information to probe alleged money laundering and terrorism financing allegations.
Adding another layer of complexity, Nadeem Anjarwalla, one of the accused Binance officials, is reportedly on the run after escaping lawful custody on March 22nd. He is expected to be arraigned in absentia. Binance itself has not yet publicly commented on the charges.
The situation takes a convoluted turn as Nadeem Anjarwalla, an accused official from Binance, is said to have absconded from legal custody on March 22nd. However, expected to face arraignment in absentia, the cryptocurrency exchange itself has not yet publicly commented on the charges.
Uncertainty for Nigerian Crypto Users
These developments create a climate of uncertainty for Nigerian cryptocurrency users. Though details are emerging, Binance’s arraignment underscores the industry’s ongoing compliance challenges domestically. However, these remain allegations; the exchange retains its legal right to defend itself judicially.
The outcome of these cases will be closely watched by the global cryptocurrency community. A conviction could have a significant impact on the exchange’s operations in Nigeria and potentially set a precedent for other countries grappling with cryptocurrency regulations.
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