According to a representative of the Central Bank of Nigeria (CBN), Binance engaged in many unlawful activities in the West African nation. This development occurs in the context of the ongoing legal prosecution of the prominent crypto exchange in Nigeria.
The Nigeria Economic Financial Crime Commission (EFCC) initiated a lawsuit against Binance and its executive, Tigray Gambaryan, in April 2024. The lawsuit accused both parties of tax evasion, currency speculation, and money laundering in the amount of approximately $34.4 million.
The legal proceedings of this case resumed on Friday after an adjournment in June. The prosecution counsel introduced Dr. Olubukola Akinwunmi, Head of Payment Policy and Regulation Division at the CBN, as a witness.
Akinwunmi, as reported by local media Nairametrics, claimed that Binance violated Nigerian laws by offering deposit and withdrawal services, an activity that is restricted to banks and registered financial institutions under the strict supervision of the CBN.
Additionally, Akinwunmi addressed Binance’s peer-to-peer feature, which enabled users to exchange Nigerian Naira for assets denominated in the US dollar. In order to provide these services in Nigeria, the CBN employee stated that the crypto exchange needed a license from the Apex bank as “an authorized giver” or “Bureau de Change.” However, Akinwunmi also criticized the secrecy of the platform, which protected the identity of users and violated specific Nigerian laws.
It is important to note that Binance enforces a mandatory know-your-customer identification process for all consumers of its P2P service and other trading features. Nevertheless, in May, Binance, along with other exchanges, disabled their Naira P2P services in response to allegations that currency speculation caused the rapid devaluation of the Naira.
After reviewing the witness testimony, Justice Emeka Nwite of the Federal High Court in Abuja has ordered that the case be postponed until July 16 to allow the defendants’ attorneys to conduct a cross-examination.
In other matters, the health status of Gambaryan has become a significant issue in court. Justice Nwite requested that the National Correctional Services provide a medical report of the detained Binance executive on Friday.
According to the Nigerian magistrate, failure to comply with this directive will result in the summons of medical service providers at the institution to court. Gambaryan has been incarcerated in Kuje Prison, Abuja, since April. Since then, he has reportedly experienced pneumonia and malaria, which has prompted inquiries regarding his health.
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