Binance, the world’s largest cryptocurrency exchange, is embroiled in a complex legal battle with Nigerian authorities over allegations of money laundering, tax evasion and currency speculation.
Two top Binance executives are at the center of the dispute: Tigran Gambaryan, Head of Financial Crime Compliance, and Nadeem Anjarwalla, Binance Regional Director in Africa. The Nigerian government has accused the two men of a range of financial crimes..
Binance embroiled in high-stakes legal battle
The legal saga began earlier this year when Gambaryan traveled to Nigeria to participate in negotiations with the government over Binance. operations in the country. However, upon arrival, he was quickly arrested and imprisoned.
A Nigerian court has dealt another blow to Binance, refusing to grant Gambaryan bail as his money laundering trial begins.
According to local media reportsJustice Emeka Nwite of the Federal High Court in Abuja cited Gambaryan’s flight risk as the main reason for refusing bail.
The prosecution argued that Gambaryan, who holds both American and Armenian citizenship, could easily flee the country if released. They also noted the escape of his colleague Anjarwalla in March, which they called suspicious.
Nigeria intensifies repression
Binance’s legal problems in Nigeria stem from a broader context repression by the government on the cryptocurrency platform. Authorities accused the exchange of facilitating more than $26 billion in illicit fund transfers without proper oversight.
The Central Bank of Nigeria (CBN) has alleged that Binance engaged in tax evasion, currency speculation and money laundering, totaling $35.4 million.
Anjarwalla, who was Binance’s regional director for Africa, was also charged alongside Gambaryan. However, in March he escaped under the custody of Nigeria’s National Security Advisor, Nuhu Ribadu. The Nigerian government traced him to Kenya, where local authorities reportedly arrested him.
THE legal battle between Binance and Nigeria highlights the increasing regulatory scrutiny facing cryptocurrency exchanges globally. As digital assets become more mainstream, governments are increasing efforts to monitor and control the flow of funds through these platforms.
For Binance, the stakes in this matter are high. Conviction of its executives could result in hefty fines or even prison sentences and further damage the exchange’s reputation and ability to operate in one of Africa’s largest economies.
Over the past three days, Binance’s native token BNB has been trading in a range of $570 to $583. This price movement comes as the broader cryptocurrency market appears to have regained its bullish momentum, with the largest digital assets showing signs of strength.
Featured image from Shutterstock, chart from TradingView.com
