Binance has been actively engaged in close cooperation with Nigerian authorities following the detention of its head of financial crime compliance.
The executive, Tigran Gambaryan, along with another Binance official, is facing accusations of laundering over $35 million.
The case, which has been adjourned until May 2, is being handled by Nigeria’s anti-corruption body.
Binance CEO Says They Are Working to Resolve Matter
During the Token2049 crypto conference in Dubai, Binance CEO Richard Teng addressed Gambaryan’s situation, claiming that they are working to deal with the issue.
“What I can say is we are working very closely with the Nigerian authorities to try to resolve the matter.”
Meanwhile, the other executive, Nadeem Anjarwalla, a British-Kenyan serving as a regional manager for Africa, fled Nigeria last month.
Anjarwalla and Gambaryan had traveled to Nigeria after the country implemented a ban on several cryptocurrency trading websites.
However, upon their arrival on February 26, they were detained by Nigeria’s Economic and Financial Crimes Commission (EFCC).
In addition to the EFCC case, Nigeria’s tax agency, the Federal Inland Revenue Service (FIRS), has charged Binance and the executives with tax evasion.
The tax evasion case is set to appear before a court on Friday.
Binance’s head of regional markets, Vishal Sacheendran, emphasized that the detentions were an isolated incident and unprecedented for the company.
However, he declined to comment on the charges against Binance itself.
The charges against Binance Holdings Limited and its chief executives include tax evasion, currency speculation, and money laundering amounting to $35.4 million.
Court documents reveal that charges were filed against Binance Holdings Limited, Tigran Gambaryan, and Nadeem Anjarwalla (now at large) on March 28, 2024, before the Federal High Court of Nigeria in Abuja.
The charges include engaging in specialized financial business without a valid license, conducting business as a financial institution without authorization, unlawful negotiation of foreign exchange rates, conspiracy to conceal the origin of illicit funds, and money laundering.
Additionally, on March 22, the Nigerian government filed another four-count charge against Binance Holdings Limited, Anjarwalla, and Gambaryan, accusing them of offering services to subscribers on their platform without registering with the Federal Inland Revenue Service and failing to pay relevant taxes.
Binance Receives Dubai License
Binance recently announced that it has obtained a license from Dubai’s regulator, VARA, enabling the platform to cater to retail clients along with qualified and institutional ones.
According to Bloomberg, the licensing process involved Binance’s founder and former CEO, Changpeng Zhao, relinquishing voting control of the Dubai unit.
However, Teng dismissed the report as speculation, emphasizing that the company does not comment on media speculation and maintains confidential relationships with regulators.
The European Union’s securities watchdog recently highlighted that “crypto exchanges largely operate outside of national legal frameworks” and mentioned that Binance claims not to have a headquarters.
When asked about Binance’s choice of global headquarters, Teng revealed that the company has shortlisted potential locations but refrained from commenting on specific places or providing a timeline for a definitive decision.
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