By
Bena Ilyas
April 30th, 2024
The ongoing case is a clear message from Nigeria that crypto giants such as Binance are not immune to scrutiny.
The Economic and Financial Crimes Commission (EFCC) will prosecute Binance Holdings Ltd and two top executives today Thursday, 4th April 2024. According to a report by local media house Premium Times, the duo faces a five-count charge of money laundering and will be in court to face Justice Emeka Nwite of the Federal High Court (FHC) in the country’s capital city of Abuja.
Although the EFCC lists Binance, Tigran Gambaryan, and Nadeem Anjarwalla as the three defendants in the case, it might be worth noting that Anjarwalla’s whereabouts are not known at the moment. As Coinspeaker earlier reported, Anjarwalla slipped through the cracks of lawful custody on March 22 and has remained at large ever since. Nonetheless, the law permits that he be arraigned in absentia. That is without being physically present.
Summarily, the court document, dated March 28, accuses the defendants of carrying out money laundering activities to an eye-popping tune of $35.4 million.
Double Trouble for Binance Execs in Nigeria
It might also be worth noting that while the EFCC continues to claw at Binance and its officials for their alleged wrongdoings, another agency is also having a go at them. Reports show that the Federal Inland Revenue Service (FIRS) will also be prosecuting the same trio today, on allegations of tax evasion. However, the interesting part is that the FIRS also plans to prosecute them before the same judge Nwite, and in the same court. The FIRS’ four-count charge is marked FHC/ABJ/CR/115/2024, and details how the defendants failed to duly register with the FIRS before offering their services to their Nigerian-based users.
Per the tax office, the said offences are criminal and punishable under Sections 8 and 29 of the VAT Act of 1993 (as Amended), Section 40 of the FIRS Establishment Act, 2007 (as amended) and under the provisions of Section 94 of the Companies Income Tax Act (as amended) respectively.
Lesson to Crypto Firms
From all indications, it appears as though Nigeria is keen on using the Binance case as a deterrent to firms of a similar nature. Hence the commitment of authorities to ensure an accelerated hearing and a hastened conclusion. This explains why Justice Nwite stepped into the fray despite an ongoing Easter vacation at the Federal High Court. Local media confirms that the vacation is supposed to end on April 8. However, because of the gravity of the case, being a matter of national interest, it would be understandable why things are being expedited.
The ongoing Binance case will undoubtedly have far-reaching effects even beyond the courtroom. It is a clear message from Nigeria that crypto giants are not immune to scrutiny. It proves that transparency, compliance, and accountability are the new currencies of the realm.
As the drama unfolds, crypto enthusiasts wait to discover if this was all greed or a desperate bid for supremacy on Binance’s part. Time and the courts will tell.