Nigerian Prosecutors Charge Binance with Money Laundering: Central Bank Testifies Binance Operated Unlawfully
Nigerian Prosecutors Allege Binance Operated Unlawfully, Witness Testifies Central Bank Did Not License Exchange
In a dramatic turn of events, Nigerian prosecutors have charged Binance and its executive Tigran Gambaryan with money laundering, alleging that the popular cryptocurrency exchange was operating unlawfully in the African nation. The prosecution’s witness, Olubukola Akinwunmi, the head of payments policy and regulation at Nigeria’s central bank, testified in court that Binance did not have a license from the Central Bank of Nigeria to operate in the country.
According to court proceedings monitored by DL News, Akinwunmi stated that Binance’s peer-to-peer trading service could be used to swap naira for other fiat currencies, making it a money brokerage platform that required authorization from the central bank. Nigerian officials have accused Binance of facilitating illicit transactions on its online exchange, leading to the charges against Gambaryan and the exchange.
Gambaryan, who has been incarcerated in Nigeria since February and is reportedly suffering from malaria, has denied the charges, with his lawyer calling the prosecution “state-sponsored hostage taking.” The trial judge, Justice Emeka Nwite, expressed anger at the prosecution and prison officials for failing to comply with his order to provide Gambaryan’s medical test results to his representatives.
Despite the challenges faced by Gambaryan and Binance, the exchange has since discontinued its services for Nigerian users, leaving millions of users in the country searching for alternative platforms. The trial has been adjourned to July 16, with Justice Nwite warning that he will not tolerate further delays in producing the necessary documents.
As the case continues to unfold, the cryptocurrency community awaits the outcome of this high-profile trial that has captured the attention of both local and international observers.
By Osato Avan-Nomayo, Nigeria-based DeFi correspondent for DL News. For tips or information about stories, contact Osato at osato@dlnews.com.
