The Economic and Financial Crimes Commission (EFCC) in Nigeria has amended its lawsuit against Binance, accusing the cryptocurrency exchange of laundering over $35 million.
The case, filed before the Federal High Court in Abuja, targets Binance’s operations in Nigeria, where the EFCC claims that the company concealed funds generated from unlawful activities.
The amended lawsuit includes charges related to money laundering, as well as the allegation that Binance engaged in foreign exchange activities without proper authorization, an accusation previously raised by Nigeria’s Bureau de Change operators.
The legal battle began earlier this year when the EFCC initially filed charges against Binance and two of its executives, including Nadeem Anjarwalla, the exchange’s regional manager for Nigeria. Anjarwalla has since fled, becoming a fugitive.
His colleague, Tigran Gambaryan, who was the head of Binance’s financial crime compliance department, had been detained for eight months. He was released last month following health concerns and pressure from the U.S. government. As Gambaryan is no longer part of the case, the EFCC has amended the charges to reflect the changes in personnel.
This legal move comes amid an intensified crackdown on illegal cryptocurrency operations in Nigeria. The EFCC has been pursuing other local digital asset firms for similar offenses.
Recently, the commission secured convictions against several companies, including Plip Global, which was found guilty of converting U.S. dollars to naira through USD-backed stablecoins without a license. The country’s regulatory landscape for digital currencies is becoming increasingly stringent, with the EFCC focusing on stopping money laundering and other illicit activities within the sector.
Nigeria’s approach to regulating digital assets has sparked debate. Some industry experts argue that proper licensing and regulation of exchanges are essential to protect investors while fostering innovation in the sector.
The case also reflects a broader trend in Nigeria and Africa, where digital asset adoption is rising, but so are concerns about fraud and illicit activities. A recent report by identity solutions firm Sumsub identified Nigeria as having the highest number of identity fraud cases, with cryptocurrency transactions being a significant target for fraudsters.Â
As the EFCC’s legal action against Binance unfolds, it signals a renewed focus on regulating and curbing the risks associated with the growing digital currency sector in Nigeria.
Also Read: Nigeria Drops Money Laundering Charges Against Binance Executive Tigran Gambaryan
