Authorities of the Economic and Financial Crimes Commission (EFCC) have made changes to its case against Binance before the Federal High Court in Abuja. The case involved a  $35.4 million alleged money laundering case against the cryptocurrency company and one of its executives, Nadeem Anjarwalla who had fled the country. 

This comes a month after the EFCC dropped money laundering charges against Tigran Gambaryan, a Binance executive which brought an immediate end to the prolonged incarceration and conflict between the Nigerian authorities and Mr Gambaryan. 

At the trial on Monday, the amended six-count charge was read before Justice Emeka Nwite. Binance and Anjarwalla were accused of laundering a total sum of $35,400,000, which was the revenue accumulated by Binance in Nigeria.  

The EFCC counsel, Ekele Iheanacho SAN, said that following the discharge of Gambayan both parties had agreed at the last adjournment that the Commission would amend its charges. However, the Binance representative and Anjarwalla were absent from Monday’s trial.

According to the counts, the funds allegedly involved illegal proceedings which are punishable under Section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022. Also, they were accused of engaging in the business of a financial institution (other than insurance, stock broking, and pension fund management) without a valid license which contradicts and is punishable under Section 58(5) of the Banks and Other Financial Institutions Act, 2020. 

Moreover, EFCC also filed that Binance and Anjarwalla used their virtual asset services platform to unlawfully negotiate foreign exchange rates in Nigeria despite not being an authorized dealer in Nigeria’s Autonomous Foreign Exchange Market. This was also contrary to and punishable under Section 29(1)(c) of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act. 

As there was no representative for the defendants a plea of not guilty was entered on their behalf in line with Section 478 of the Administration of Criminal Justice Act.

The judge however entered a not guilty plea on behalf of the defendants in accordance with Section 478 of the Administration of Criminal Justice Act. The states that if a corporation does not appear by a representative and fails to enter a plea, the court shall order a plea of not guilty, and the trial shall proceed as though the corporation had duly entered a plea of not guilty.

The judge then adjourned the case to February 24-25, 2025, for the continuation of the trial and cross-examination.

Binance alleged money laundering: what you should know

On February 28, 2024, Nigerian authorities detained two senior Binance executives, Nadeem Anjarwalla, a 37-year-old British-Kenyan who serves as the regional manager for Africa, and Tigran Gambaryan, a 39-year-old American who is the head of financial crime compliance at Binance. Anjarwalla later fled the country from detention.

Tigran Gambaryan faced money laundering trials from detention in April. Having spent over 8 months in detention, there were calls locally and internationally for an amicable settlement of the case considering the reports about the deteriorating health conditions of the accused. 

In June, the Federal Inland Revenue Service (FIRS) dropped tax evasion charges against Tigran Gambaryan and Nadeem Anjarwalla (who fled from detention) and filed a new lawsuit against Binance as the sole defendant. A September video showed Gambaryan struggling to walk to court, prompting outrage from many people, including Binance CEO Richard Teng.

On October 11, the judge at Federal High Court in Abuja Emeka Nwite, rejected Tigran’s second bail application, ruling that Mr Gambaryan’s grounds of ill health were not sufficient to release him from detention. Subsequently, he fixed it last Friday (October 18) for continuation but Tigran was absent.

He then rescheduled the trial which was later overtaken by a clandestine hearing that ended the case. Tigran Gambaryan, held at the Kuje Correctional Center Abuja since April returned home to his family as a free man last month.

Consequently, Binance CEO, Richard Teng has expressed appreciation to the Nigerian government for releasing Tigran Gambaryan.

He maintained that Tigran’s health and well-being had remained a top priority for Binance. He added that the crypto exchange company is thankful that he can now receive the medical care and rest he so urgently needs alongside his family.

The CEO also added that Binance remains committed to collaborating with global regulators to ensure compliance and transparency in the evolving digital asset space. “We are eager to put this episode behind us and continue working toward a brighter future for the blockchain industry around the world”, Teng said.

Also Read: After 8 months of detention, Binance executive Tigran Gambaryan departs Nigeria.