The Economic and Financial Crimes Commission (EFCC) has filed an amended $35.4 million money laundering case against Binance Holdings Limited and one of its fugitive executives, Nadeem Anjarwalla, before the Federal High Court in Abuja.
On Monday, Justice Emeka Nwite presided over the amended charges, which were introduced weeks after the court discharged American citizen Tigran Gambaryan from the case due to health and diplomatic considerations.
Key Allegations
The six-count amended charge accuses Binance and Anjarwalla of:
1. Concealing the origins of $35.4 million in revenue allegedly derived from unlawful activities, punishable under Section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022.
2. Operating as a financial institution without proper licensing, violating Section 58(5) of the Banks and Other Financial Institutions Act, 2020.
3. Conducting foreign exchange transactions on its platform despite not being an authorized dealer in Nigeria’s Autonomous Foreign Exchange Market, contrary to Section 29(1)(c) of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act.
Court Proceedings
EFCC counsel, Ekele Iheanacho SAN, informed the court that the charges were amended in compliance with a prior directive following the discharge of Gambaryan. Since no representative for the defendants appeared in court, Iheanacho invoked Section 478 of the Administration of Criminal Justice Act, requesting the court to enter a not guilty plea on their behalf.
Justice Nwite directed the court registrar to read the charges aloud, after which he entered a not guilty plea for the defendants as stipulated under Section 478. The trial was adjourned to November 25, 2024, and February 24–25, 2025, for continuation and cross-examination.
Background and Ongoing Scrutiny
This case emerges amid heightened scrutiny of cryptocurrency trading in Nigeria, following its classification as a national security issue by the National Security Adviser (NSA) in 2023. In response, the Central Bank of Nigeria (CBN) directed fintech firms to block accounts linked to cryptocurrency transactions and report such activity to law enforcement.
In February 2024, Binance temporarily disabled its peer-to-peer feature for Nigerian users due to allegations of currency manipulation and money laundering. The Securities and Exchange Commission (SEC) also proposed removing the Naira as a currency pair from cryptocurrency platforms to curb market manipulation and safeguard the Nigerian capital market.
Meanwhile, the EFCC and Federal Inland Revenue Service (FIRS) have filed separate lawsuits against Binance over alleged tax evasion and money laundering violations. In parallel, Binance executives, including Nadeem Anjarwalla and Tigran Gambaryan, have filed a fundamental rights case against Nigerian authorities, citing violations of their constitutional rights.
Testimonies and Expert Witnesses
During previous proceedings, Dr. Olubukola Akinwunmi, Head of Payment Policy and Regulation at the CBN, testified against Binance, accusing the platform of offering unauthorized banking services such as deposits and withdrawals. Akinwunmi also confirmed that while the Naira is Nigeria’s legal tender, its digital version, the eNaira, holds the same legal status.
As the trial progresses, Binance faces mounting legal challenges that could shape the regulatory landscape for virtual asset service providers in Nigeria.
