New Twist: EFCC Modifies Binance Charge After Gambaryan's Discharge

EFCC Revises Charge Against Binance

“That you, Binance Holdings LTD (‘Α.Κ.Α BINANCE’), Nadeem Anjarwalla (now at large) and other persons at large between...”

The Economic and Financial Crimes Commission (EFCC) has amended the charges against Binance in a $35.4 million money laundering case, with the cryptocurrency firm now facing revised allegations.

The Economic and Financial Crimes Commission (EFCC) has modified the $35.4 million money laundering charge against Binance Holdings Limited. This development comes after Tigran Gambaryan, the second defendant, was discharged.

According to EFCC's lawyer, Ekele Iheanacho (SAN), the amendment is part of the agency's efforts to reorganize the case following Gambaryan's discharge. Iheanacho also stated that the modification is intended to comply with a previous court order to streamline the court documents.

During the trial, the amended six-count charge was presented before Justice Emeka Nwite. Notably, Binance's lawyer, Okiemute Okwakwa, did not object to the application. The trial is set to continue, with the next hearing scheduled for February 2025.

Iheanacho requested that the amended charge be prepared for the defendant, as per Section 478 of the Administration of Criminal Justice Act (ACJA), 2015. He also asked the court to enter a non-guilty plea on behalf of the defendant. Following the reading of the amended six-count charge and the entry of a non-guilty plea for Binance, the judge adjourned the matter until February 24 and 25, 2025, for the continuation of the trial.

Prior to this development, Babatunde Fagbohunlu (SAN), counsel for Binance, argued that the Economic and Financial Crimes Commission (EFCC) should amend the charge to organize the court documents properly. Although Iheanacho disagreed with this suggestion, Justice Nwite ultimately sided with Fagbohunlu, directing the EFCC's lawyer to take necessary actions.

It's worth noting that this development comes after the EFCC dropped money laundering charges against Tigran Gambaryan, a Binance executive, which led to the end of his prolonged incarceration and conflict with Nigerian authorities.

Binance, the cryptocurrency firm, is now the sole defendant in the amended charge, which was dated and filed on November 25.

The amended charge contains six counts, with the first count alleging that Binance, along with Nadeem Anjarwalla (currently at large) and other unnamed individuals, conspired to operate a financial institution without a valid license between January 2023 and January 2024 in Abuja. This offense is said to be contrary to Section 97 of the Penal Code Act.

In count three, Binance and Nadeem Anjarwalla (currently at large) are accused of operating a financial institution without a valid license in Abuja between January 2022 and January 2024. This alleged offense is contrary to Section 58(5) of the Banks and Other Financial Institutions Act, 2020.

Count four alleges that Binance, along with others currently at large, used their virtual asset services platform to illegally negotiate foreign exchange rates in Nigeria. Notably, they were not authorized dealers in Nigeria's Autonomous Foreign Exchange Market. This offense is said to be contrary to and punishable under Section 29(1)(c) of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act.

In count six of the amended charge, Binance and Nadeem Anjarwalla (currently at large) are accused of concealing the origin of $35.4 million in revenue generated by the company in Nigeria between January 2023 and December 2023 in Abuja. The funds are alleged to be proceeds of unlawful activity, violating Section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022.

Justice Emeka Nwite ordered the release of Tigran Gambaryan, a detained Binance executive, from Kuje Prison on October 23. This decision came after the EFCC's counsel, R. U. Adagba, informed the court that the federal government had withdrawn the charges against Gambaryan due to his health challenges.

Count five read: “That you, Binance Holdings LTD ("Α.Κ.Α BINANCE"), Nadeem Anjarwalla (now at large) and other persons at large between January 2023 and January 2024 in Abuja within the jurisdiction of this Honourable Court conspired amongst yourselves to conceal the origin of the proceeds of your unlawful activities and thereby committed an offence contrary to section 21 (a) and punishable under section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022.”