The Economic Financial Crime Commission (EFCC) is gearing up to charge Tigran Gambaryan and Nadeem Anjarwalla formally, both high-ranking officials at Binance, the cryptocurrency trading platform, with five counts of money laundering amounting to over $35.4 million. The arraignment is scheduled this Thursday before Justice Emeka Nwite of the Federal High Court (FHC) in Abuja. Anjarwalla, however, managed to escape from lawful custody on March 22 and fled Nigeria hence the EFCC plans to prosecute him in absentia.
The charges stem from allegations that the trio engaged in money laundering activities totaling $35,400,000. One of the counts accuses them of operating a financial institution business in Abuja without a valid license between January 2023 and January 2024, contravening Section 57(1) and (2) of the Banks and Other Financial Institutions Act, 2020, punishable under Section 57(5) of the same Act.
Under case number FHC/ABJ/CR/115/2024, the defendants face four counts before Justice Nwite. Despite the Easter vacation of the Federal High Court from March 22 to April 8, Chief Judge Justice John Tsoho authorized Justice Nwite to handle the case due to its national significance.
In addition to the money laundering charges, the Federal Inland Revenue Service (FIRS) in Abuja filed legal proceedings against Binance, alleging tax evasion. The charges include non-remittance of Value Added Tax (VAT) and Company Income Tax (CIT), non-compliance with tax return filing obligations, and facilitating tax evasion for its users. Binance is also accused of failing to register for tax purposes with the FIRS and violating the country’s tax laws.
The federal government’s crackdown on crypto trading platforms, citing manipulation of foreign exchange rates, has led to increased regulation. Earlier arrests of Binance officials on February 28 included Anjarwalla and Gambaryan, who subsequently filed a lawsuit against the federal government, alleging improper detention and coercion tactics.
As the legal battle unfolds, Binance has yet to formally respond to these serious allegations, indicating a tense standoff between the cryptocurrency giant and Nigerian authorities.
