In Abuja, Nigeria, authorities have taken the initial legal step by requesting in court on Thursday for cryptocurrency exchange Binance and two of its executives to stand trial on charges of alleged money laundering and tax evasion. This move comes after weeks of investigation into the activities of the trading platform. During the court hearing, only Tigran Gambaryan, an American citizen and Binance’s head of financial crime compliance, was present, while Nadeem Anjarwalla, the company’s regional manager, remains at large after escaping custody in late March.
Nigeria boasts Africa’s largest cryptocurrency economy in terms of trade volume, with many citizens using cryptocurrency to protect their finances against rising inflation and the depreciation of the local currency. However, authorities have raised concerns about the platform’s alleged involvement in money laundering and financing terrorism.
At the Federal High Court in the capital city of Abuja, Nigeria’s anti-corruption agency and the local tax authority have accused Binance and the two executives of various offenses, including operating without the required license, unlawfully negotiating foreign exchange rates, tax evasion, and concealing the origin of illegal proceeds totaling $35.4 million.
Gambaryan was escorted to and from the court by officials from the anti-corruption agency. Binance did not immediately respond to requests for comment.
Since the arrest of Gambaryan and Anjarwalla on February 26, their trial has been surrounded by controversy, with allegations of illegal detention and passport seizure by authorities. Additionally, local media reported that the Nigerian government demanded the names of citizens trading on the platform.
The Abuja court adjourned the formal commencement of the money laundering trial until April 8 after Mark Mordi, Gambaryan’s lawyer, argued that his client could not represent Binance in the case without the company’s permission, a claim disputed by the public prosecutor.
“There is evidence that the second defendant (Gambaryan) is a representative of the first defendant in this country (Binance),” said Ekene Iheanacho, a lawyer representing Nigeria’s Economic and Financial Crimes Commission.