EFCC Amends $35.4M Money Laundering Case Against Binance and Executive Nadeem Anjarwalla

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Hassan Shittu

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Hassan Shittu

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November 26, 2024

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The Economic and Financial Crimes Commission (EFCC) has intensified its legal pursuit of Binance Holdings Limited and its executive, Nadeem Anjarwalla, over allegations of money laundering totaling $35.4 million.

According to a local news source, the case was presented before Justice Emeka Nwite of the Federal High Court in Abuja.

It highlighted accusations of laundering illicit funds, unauthorized financial operations, and violations of Nigeria’s foreign exchange regulations.

The amended six-count charge was filed after the EFCC discharged another Binance executive, Tigran Gambaryan, last month due to health concerns and diplomatic intervention.

Despite Binance’s global reputation as a leading cryptocurrency platform, the EFCC’s allegations suggest a pattern of financial misconduct that the company must address in Nigeria.

During the Monday hearing, the EFCC’s counsel, Ekele Iheanacho SAN, confirmed the revised charges against Binance and Anjarwalla, who remains at large after fleeing detention earlier this year.

With no representatives present for the defendants, Justice Nwite entered a not-guilty plea on their behalf under provisions of the Administration of Criminal Justice Act.

Binance Money Laundering Charges: What’s the Next Step For EFCC?

The EFCC’s amended charges reflect more comprehensive legal complexities against Binance.

The case accuses the company and its executive of laundering $35.4 million in Nigeria, funds allegedly derived from unlawful activities.

According to the EFCC, these actions contradict the Money Laundering (Prevention and Prohibition) Act of 2022, which criminalizes the concealment of proceeds from illegal operations.

Furthermore, Binance is accused of operating as a financial institution without a valid license under the Banks and Other Financial Institutions Act of 2020.

This accusation stems from Binance’s facilitation of deposit and withdrawal services typically reserved for licensed banks and other authorized financial entities in Nigeria.

In addition, the EFCC alleges that Binance unlawfully engaged in foreign exchange transactions without proper authorization, violating the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act.

During the proceedings, the EFCC’s legal counsel noted that the charges were amended following the withdrawal of allegations against Gambaryan.

The prosecution also stressed Binance’s absence from the hearing, which prompted the court to proceed with a not-guilty plea on its behalf, per Nigerian legal procedure.

The judge subsequently set February 2025 as the trial’s continuation date.

Background and Implications for Binance: How Complicated Is The Legal Trouble?

The EFCC’s case against Binance is part of a broader crackdown on cryptocurrency activities in Nigeria, despite Nigeria being the second fastest-growing crypto adoption in 2024.

Earlier this year, the Central Bank of Nigeria classified cryptocurrency trading as a national security concern and instructed fintech platforms to block accounts associated with such transactions.

These measures aimed to protect the Naira’s value amid growing fears of market manipulation through peer-to-peer crypto trading platforms.

Binance’s legal troubles in Nigeria began in February 2024 when authorities detained Nadeem Anjarwalla and Tigran Gambaryan.

While Anjarwalla fled the country, Gambaryan endured months of detention before being released in October due to health and diplomatic considerations.

During this time, the Federal Inland Revenue Service also pursued Binance for alleged tax evasion.

Notably, as part of the ongoing Nigerian government battle against crypto, the Federal High Court in Abuja has recently convicted two crypto firms for illegal USDT-to-Naira transactions, imposing fines totaling $30,000.

The firms were found guilty of failing to comply with Nigeria’s anti-money laundering regulations.

Alongside forfeiting N50 million ($30,000), the companies were fined an additional N500,000 each, while Ogumba was ordered to file an affidavit of good behavior.