EFCC Amends Charges Against Binance for Alleged Money Laundering: $35.4 Million Involved
The Economic and Financial Crimes Commission (EFCC) has made amendments to its $35,400,000 alleged money laundering case involving Binance Holdings Limited and Nadeem Anjarwalla. This update was presented before Justice Emeka Nwite at the Federal High Court in Abuja. The changes come after the court discharged Tigran Gambaryan from the case due to health and diplomatic reasons cited by the EFCC.
In the revised six-count charge, Binance and Anjarwalla are accused of concealing the origin of $35,400,000 generated as revenue by Binance in Nigeria. This amount is alleged to constitute proceeds of unlawful activity and is punishable under Section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022.
Additionally, both parties are accused of conducting financial business without a valid license under Section 58(5) of the Banks and Other Financial Institutions Act, 2020. The EFCC also claims that Binance and Anjarwalla engaged in unauthorized foreign exchange activities in Nigeria despite not being an authorized dealer in Nigeria’s Autonomous Foreign Exchange Market, as stated in the amended charges.
During the recent court session, EFCC counsel Ekele Iheanacho SAN stated that the amendment was made following the discharge of Gambaryan and requested the plea of the defendants to be taken. As there was no representative for the defendants, a plea of not guilty was entered on their behalf in accordance with the Administration of Criminal Justice Act.
The trial is scheduled to continue on November 25, 2024, and February 24-25, 2025, for further examination and cross-questioning.
In a related context, last year, Nigeria’s National Security Adviser classified cryptocurrency trading as a national security concern. The Central Bank of Nigeria directed several fintech startups to block accounts engaging in cryptocurrency transactions. In February of this year, Binance disabled its peer-to-peer feature for Nigerian users due to scrutiny by the Nigerian government.
The Securities and Exchange Commission (SEC) recently discussed the need for new cryptocurrency regulations to remove the Naira from cryptocurrency peer-to-peer platforms. These measures aim to combat market manipulation and ensure the integrity of the Nigerian capital market.
Following the detention of Binance executives Anjarwalla and Gambaryan, the company faces separate suits from the FIRS and EFCC related to tax evasion, money laundering, and foreign exchange violations. Anjarwalla fled the country after detention, and legal proceedings are ongoing.
At a recent court session, Binance’s legal team questioned a CBN official about the eNaira. The case continues to unfold, shedding light on the complexities of the financial landscape in Nigeria.
