Nigerian SEC's Money Laundering Case Against Binance Continues, CBN Claims Exchange Facilitated Illegal Transactions

As the Nigerian SEC’s money laundering case against Binance continues, the Central Bank of Nigeria (CBN) on July 5 claimed that the exchange

The Nigerian Central Bank (CBN) has accused Binance of facilitating illegal transactions in the country, as the Securities and Exchange Commission (SEC) continues its money laundering case against the exchange.

According to Dr Olubukola Akinwunmi, Head of Payment Policy and Regulation at the CBN, Binance conducted banking and financial services without the necessary authorizations.

Testifying before Justice Emeka Nwite of the Federal High Court in Abuja on Tuesday, Dr Akinwunmi said the services offered by Binance are reserved for banking entities and licensed financial institutions.

He said that without a license, Binance operated a peer-to-peer asset exchange service and enabled Nigerians to convert Naira to dollars, which is another violation according to the CBN representative.

Furthermore, he said that the exchange allows users to engage in these services without collecting KYC (Know Your Customer) data, which is a requirement for financial service providers in the country.

As a result, Binance is allegedly linked to $35 million in illicit transactions and money laundering, accusations that still have one Binance executive, Tigran Gambaryan, locked up in a Nigerian prison.

The other accused, Nadeem Anjarwalla, managed to flee the country several months ago.

In June, US Senators even visited Gambaryan to find him struggling with ill health. During his time at the Kuje Prison, which is known to house members of Boko Haram and is similarly notorious, he contracted double pneumonia and malaria.

They demanded that Nigeria release him and let Binance handle the legal matters, since he is not a decision-maker for the company.

During the hearing, Justice Nwite ordered prison officials to submit reports from Gambaryan’s visit to a hospital, which she also ordered at the previous hearing.

However, the prison officials have not yet complied with the order, despite Gambaryan’s legal team requesting it multiple times. His family alleges that the prison is ignoring his deteriorating health and keeping him behind bars without sufficient cause.

The next hearing is scheduled for July 16, when the court will hear from the defense.

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