• Binance executives in Nigeria face trial for money laundering and tax evasion, raising concerns about the crypto exchange’s operations.
• While Binance defends one executive’s compliance background, the upcoming court date casts a shadow over the platform’s future in the country.

The world’s leading cryptocurrency exchange, Binance, is facing a legal storm in Nigeria. Two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, are set to be arraigned before the Abuja Federal High Court on Thursday, April 4th. Serious accusations of money laundering and tax evasion have cast a shadow over the platform’s operations in the West African nation.

Charges and Regulatory Scrutiny

The legal battles stem from separate charges filed by Nigerian authorities. The Economic and Financial Crimes Commission (EFCC) accuses Gambaryan and Anjarwalla of laundering approximately $35.4 million and conducting financial activities without a license. These alleged offenses violate the country’s banking regulations.

Meanwhile, the Federal Inland Revenue Service (FIRS) charges the executives with failing to register with the agency and neglecting to pay taxes on services offered through the Binance platform. This adds another layer of scrutiny to Binance’s operations in Nigeria.

Also Read: Update: Binance Execs Held as Nigeria Flexes Regulatory Muscle

The legal saga unfolds against a backdrop of a court order granting the EFCC access to detailed trading data from Binance. This order highlights concerns within Nigeria regarding potential money laundering and financing of terrorism activities through the cryptocurrency exchange.

Binance Responds: Compliance Advocate or Regulatory Lacuna?

In response to the looming court battles, Binance has issued a statement defending Gambaryan. The statement portrays him, an American citizen with a law enforcement background, as a strong advocate for regulatory compliance and financial transparency.

The statement further highlights Gambaryan’s past experience leading investigations into cybercrime, culminating in his appointment to oversee compliance at Binance. Despite his senior position, Binance emphasizes that Gambaryan lacked decision-making authority within the company. They are requesting that he not be held personally liable for the alleged offenses.

Challenges and Uncertainties

While Binance attempts to provide context for Gambaryan’s role, the underlying accusations of money laundering and tax evasion underscore the significant regulatory challenges the crypto exchange faces in Nigeria. As the legal proceedings unfold, it remains to be seen whether Binance can effectively address the concerns of Nigerian authorities and ensure continued operation within the country.