Binance is embroiled in three legal cases in Nigeria, facing a potential $81 billion fine for allegedly harming the nation’s economy. The exchange is also involved in criminal cases related to money laundering and tax evasion. Legal proceedings are delayed due to the sluggish judicial process, and the Nigerian cryptocurrency market is suffering as a result.
Binance faces significant legal challenges in Nigeria, with three ongoing court cases and a potential $81 billion fine looming. This fine, requested by the Nigerian government, pertains to allegations that the cryptocurrency exchange has negatively impacted the nation’s economy. In addition, Binance is entangled in two separate criminal cases related to money laundering and tax evasion, both dating back to the previous year. The exchange has denied the allegations and maintains its not-guilty plea regarding the criminal charges.
Despite the Nigerian officials’ desire for swift trials, progress has been hindered by procedural delays within the country’s legal system. Scheduling conflicts and mishandled procedures have resulted in slow processing of the cases. Furthermore, Nigeria’s cryptocurrency market has declined significantly, with stablecoin trading volumes reducing by 38% as the government tightened regulations on peer-to-peer trading.
A comprehensive overview of Binance’s legal issues in Nigeria includes an economic distortion case, a money laundering case, and a tax evasion case. The proposed $81 billion fine is particularly exorbitant, nearly 19 times the $4.3 billion settlement reached with U.S. authorities in 2023 for banking law violations. Nigeria’s tax agency, the Federal Inland Revenue Service, claims that Binance deprived the government of substantial tax revenue by failing to register and pay the necessary taxes while operating in the country.
Nigerian prosecutors calculated the penalty based on Binance’s revenue during its operations, which allegedly yielded $35.4 million in 2023. The hearing schedule has also faced interruptions, with a recent hearing delayed until April, due to the presiding judge entering recess.
The money laundering predicament for Binance escalated in February 2024, involving the detention of company executives, including Tigran Gambaryan and Nadeem Anjarwalla, during discussions with Nigerian officials about their operations. While Anjarwalla absconded, Gambaryan was imprisoned for alleged money laundering activities linked to Binance. Ultimately, he was released after intervention from U.S. authorities, but the EFCC continues to allege that Binance facilitated the laundering of $35.4 million.
Lastly, the tax evasion case, initiated alongside the money laundering charges, has finally seen some movement as the Federal Inland Revenue Service called its first witness. The trial is currently adjourned until April 11 after recent proceedings, indicating a continuation of the lengthy legal struggles faced by Binance in Nigeria.
Osato Avan-Nomayo is identified as the DeFi correspondent based in Nigeria, providing insights into the developments in this unfolding situation.
In summary, Binance is grappling with multiple legal issues in Nigeria, facing a staggering $81 billion fine alongside serious criminal allegations. The cases have been hampered by substantial delays within the local legal system, contributing to an overall decline in Nigeria’s cryptocurrency marketplace. As trials proceed, further developments are crucial to understanding Binance’s future within Nigeria and the implications for the broader cryptocurrency sector.
Original Source: www.dlnews.com
