Nigeria vs. Binance: Court Hearing Highlights Unlicensed Operation, Money Laundering Charges

• Nigerian Central Bank accuses Binance of operating as an exchange without license.
• Binance executive faces money laundering charges but is released due to health concerns.
• Court tensions rise over delays in releasing the executive’s medical test results.

Crypto exchange Binance’s regulatory woes in Nigeria deepened as the Central Bank of Nigeria (CBN) accused the company of operating without a license in the country.

The allegation emerged during a recent court hearing in Abuja, where a senior CBN official, Akinwumi, testified against Binance.

Binance’s lack of legal rights in the country to operate as a crypto exchange and its legal violations were considered a crucial point in the court hearing in Abuja. During the prosecution’s examination of Akinwummi, led by EFCC Counsel Ekele Iheanacho, Akinwumi affirmed, “The CBN did not issue any license to Binance.”

“The Binance provides platform for traders to trade between the naira and cryptocurrency, as well as paying between one cryptocurrency and the other…They also facilitate conversion from one fiat currency to the other…That kind of service requires authorization by the CBN, either as an authorised dealer or as a bereau de change.”

Complicating matters further, Binance executive Tigran Gambaryan faces separate money laundering charges. Apprehended by Nigerian authorities in February 2024, his deteriorating health conditions led to his release. During a prior hearing, he experienced a medical episode in court and was diagnosed with malaria. This prompted US politicians to lobby President Biden for Gambaryan’s release. His wife, Yuki Gambaryan, accused the Nigerian government of withholding medical results and failing to provide adequate care despite a court order.

Justice Emeka Nwite further exacerbated tensions by rebuking the prosecution and prison officials for the delay. He ordered them to produce the medical reports by the next court date , scheduled for July 16. However, prison officials maintained that Gambaryan’s health was not serious.