Nigeria Seeks Trial For Binance Executives Over Money Laundering

Tigran Gambaryan, an American citizen and Binance's head of financial crime compliance, right, is escorted as he leaves a court hearing at the federal High Courts, in Abuja, Nigeria, Thursday, April 4

In a significant legal development, Nigerian authorities have taken the initial step of requesting a trial for cryptocurrency exchange Binance and two of its executives on charges of money laundering and tax evasion. This move comes after a thorough criminal investigation into the operations of the trading platform.

During a court hearing in Abuja, Nigeria, only one of the accused executives, an American citizen and Binance’s head of financial crime compliance, was present. The regional manager of the company remains at large after escaping custody in late March.

Nigeria boasts the largest cryptocurrency economy in Africa in terms of trade volume, with many citizens turning to crypto to safeguard their finances against rising inflation and the devaluation of the local currency. However, authorities have alleged that the platform was being exploited for money laundering and terrorism financing.

At the Federal High Court in Abuja, the country’s anti-corruption agency and tax authority have leveled charges against Binance and the two officials. The accusations include operating without the necessary license, engaging in unlawful foreign exchange rate negotiations, tax evasion, and concealing the origin of illegal proceeds and revenue amounting to $35.4 million.

American executive from Binance faces charges in court.

Legal action initiated against Binance for financial crimes in Nigeria.

Accusations include operating without license and tax evasion.

The court hearing saw the American executive escorted by officials from the anti-corruption agency. Binance was not immediately available for comment on the matter.

Since the arrests of the two executives on February 26, the trial has been marred by controversy, with the accused claiming illegal detention and passport seizure by authorities. Reports from local media suggested that the Nigerian government had requested information on citizens trading on the platform.

The court in Abuja has adjourned the formal commencement of the money laundering trial to April 8. The executive's lawyer argued that representation of Binance in the case required the company's permission, a point contested by the public prosecutor who cited evidence of the executive's role as a representative of Binance in the country.