CBN tells court: Binance was involved in illegal banking services in Nigeria

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The Binance executives are said to be involved in various illegal banking services in Nigeria, the authorities have insisted.

While dismissing that the detained Binance executive was kept in unhealthy custody, the Central Bank of Nigeria (CBN) has raised serious allegations against cryptocurrency exchange Binance, insisting it has been conducting banking services without necessary approvals.

Indeed, Olubukola Akinwunmi, CBN’s head of payment policy and regulation, testified in the Federal High Court in Abuja, that Binance’s deposit and withdrawal operations should be exclusive to licensed banks and financial institutions.

The Nigerian government accused Binance and its executives, Tigran Gambaryan and Nadeem Anjarwalla, of hiding the origins of $35.4 million linked to illegal activities.

Akinwunmi, under questioning from Economic and Financial Crimes Commission counsel Ekele Iheanacho, indicated that Binance’s website misled Nigerians into conducting naira transactions.

The platform promoted fee-free deposits and low-cost withdrawals, services that are strictly regulated by the CBN.

Akinwunmi highlighted that Binance facilitated currency exchanges from naira to US dollars without CBN authorization, which is required for such transactions.

Binance was also said to have used pseudonyms by traders, a violation of financial laws mandating the disclosure of true identities.

The court was informed about Binance’s peer-to-peer (P2P) transaction process, where buyers transfer naira directly to sellers’ bank accounts.

Akinwunmi argued that these activities are regulated and that Binance was not authorized to offer such services.

Following Akinwunmi’s testimony, the court adjourned the case until July 16 for the defence’s cross-examination.

The judge also mandated the production of medical reports for Tigran Gambaryan, warning of repercussions for noncompliance.

This case is part of a broader crackdown on cryptocurrency in Nigeria.

The CBN has instructed fintech companies like Opay and Moniepoint to block and report accounts involved in cryptocurrency transactions.

In February, Binance disabled its P2P feature for Nigerian users due to increased government scrutiny.

The Securities and Exchange Commission (SEC) has also called for measures to delist the naira from P2P platforms to prevent market manipulation and safeguard the country’s financial system.