Binance continues to face regulatory challenges in multiple countries. Yesterday, a Nigerian court dismissed a lawsuit filed by Binance executives against the government. The executives were briefly detained in Nigeria on charges of money laundering and tax evasion. Additionally, Binance has appealed the $4.4 million fine imposed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), stating that its services were not specifically targeting Canadian residents.
(Brief summary:
Hundreds of former federal prosecutors and FBI agents pressure Biden to secure the release of detained Binance executives in Nigeria.)
(Background:
Binance CEO Richard Teng criticizes the Nigerian government for unlawfully detaining Binance executives, demands the return of a 150 million naira bribe.)
Although Binance, the world’s largest cryptocurrency exchange, reached a record $4.3 billion settlement with regulatory authorities such as the US Department of Justice (DOJ) last year, its lawsuit with the Securities and Exchange Commission (SEC) is still ongoing, and it continues to face regulatory obstacles in multiple countries.
Nigerian court dismisses lawsuit against Binance executives
One of the recent concerns is the Nigerian government’s actions in February to ban Binance, Coinbase, and other exchanges and detain two Binance executives who had traveled to the country for negotiations. In late March, the Nigerian Federal Inland Revenue Service (FIRS) charged Binance and the two detained executives with tax evasion, and the Economic and Financial Crimes Commission (EFCC) subsequently added money laundering charges totaling over $34 million.
In March, Binance’s African regional manager, Nadeem Anjarwalla, managed to escape, but Tigran Gambaryan, head of Binance’s Financial Crime Compliance Department, continues to be detained and faces trial for money laundering charges. Gambaryan, the defendant, also filed a lawsuit against the Nigerian government in March, requesting the court to order the National Security Adviser’s office (NSA) and the EFCC to immediately release him, return his confiscated passport, and apologize for his detention.
Anjarwalla, who has already left the country, has also filed a lawsuit against the NSA and EFCC, claiming that the Nigerian authorities detained and confiscated his passport, which violated his fundamental right to personal freedom.
Furthermore, according to local media reports yesterday (19th), the Nigerian High Court rejected the lawsuit filed by Nadeem Anjarwalla. The reason is that he failed to appear in court and did not have a lawyer representing him. Judge Inyang Ekwo ruled that the lawsuit was dismissed due to a lack of “serious prosecution.” (Since he has already fled the country, it is unlikely for him to return and participate in the lawsuit…)
As for Gambaryan, who is still detained, the court is expected to hold a trial hearing on July 9.
Binance appeals $4.4 million fine imposed by Canadian regulatory agency
On the other hand, according to Bloomberg, Binance filed an appeal on June 5 with the Federal Court of Canada against the accusations made by the Financial Transactions and Reports Analysis Centre (FINTRAC) of Canada regarding Binance’s non-compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.
In its appeal, Binance stated that its services were not targeting Canadian residents and that any participation in the Canadian market was incidental to its global business. The exchange had previously announced its withdrawal from the Canadian market in May 2023 due to regulatory concerns.
On May 9, FINTRAC announced a fine of over 6 million Canadian dollars (approximately $4.4 million) against Binance, citing reasons such as failure to register as a foreign money services business and failure to report large virtual currency transactions of $10,000 or more within a single transaction.
Related reports:
Binance executive boldly escapes detention in Nigeria, how did he regain his freedom? Binance spokesperson speaks out.
Nigerian SEC: Binance operates illegally and should immediately stop promoting to users!
Nigeria demands Binance hand over personal information and transaction records of top 100 users! Negotiations with Binance at a deadlock.
Nigeria bans Binance, Coinbase, and other cryptocurrency exchanges, alleging manipulation of the Naira exchange rate and illegal money laundering loopholes.