EFCC Amends $35.4 Million Money Laundering Charges Against Binance And Fleeing Executive
The Economic and Financial Crimes Commission (EFCC) has revised its $35.4 million money laundering case against Binance Holdings Limited and one of its executives, Nadeem Anjarwalla, who fled the country. The amended charges were presented before Justice Emeka Nwite of the Federal High Court in Abuja on Monday.
This update follows the recent discharge of American national Tigran Gambaryan, a former co-defendant, on health and diplomatic grounds, as confirmed by the EFCC.
The six-count amended charges accuse Binance and Anjarwalla of concealing the origins of $35.4 million in revenue allegedly obtained through unlawful activities, in violation of Section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022.
Additionally, they are accused of operating as a financial institution without the required license, contravening Section 58(5) of the Banks and Other Financial Institutions Act, 2020. The EFCC also alleges that Binance facilitated unauthorized foreign exchange transactions in Nigeria through its virtual asset services platform, violating Section 29(1)(c) of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act.
During the hearing, EFCC counsel Ekele Iheanacho SAN applied for the amended charges to be read, as the court had directed in the previous session. Since neither Binance nor Anjarwalla had a representative in court, a plea of not guilty was entered on their behalf under Section 478 of the Administration of Criminal Justice Act.
Justice Nwite adjourned the trial to November 25, 2024, and February 24-25, 2025, for further proceedings, including cross-examination.
The case is part of a broader crackdown on cryptocurrency operations in Nigeria. Last year, cryptocurrency trading was classified as a national security concern by Nigeria’s National Security Adviser. The Central Bank of Nigeria (CBN) subsequently directed fintech platforms to block accounts involved in cryptocurrency transactions and report them to law enforcement.
Earlier this year, Binance faced intensified scrutiny, leading to the temporary disabling of its peer-to-peer feature for Nigerian users. The Securities and Exchange Commission (SEC) has also called for stricter measures, including removing the Naira as a currency pair from cryptocurrency platforms, citing concerns over market manipulation and the impact on the exchange rate.
Anjarwalla, Binance’s Regional Manager for Africa, had been detained alongside Gambaryan in February but later escaped from custody. Binance now faces separate legal battles over alleged tax evasion and foreign exchange violations, alongside money laundering charges.
This development underscores Nigeria’s ongoing efforts to regulate cryptocurrency activities and enforce financial compliance within its borders.
