A witness in the ongoing Nigerian money laundering trial against Binance has alleged that many local users of the cryptocurrency exchange platform are operating under false identities. The witness further claimed that by allowing users to withdraw Nigerian naira (NGN), a regulated activity, Binance is in violation of local laws.
Money Laundering Charges
A deputy director at the Central Bank of Nigeria (CBN) testified in a local court that many Nigerians using the cryptocurrency exchange Binance employ false identities. Olubukola Akinwumi, head of Payment Policy and Regulation, gave his testimony during the ongoing money laundering trial against Binance and Tigran Gambaryan. Akinwumi, who is a witness for the Economic and Financial Crimes Commission (EFCC) in the case, also claimed Binance lacks the necessary operating license, making its activities illegal in Nigeria.
Akinwumi stated that the CBN discovered Binance users’ practice of hiding their identities while monitoring payment providers’ activities. He argued that Binance allows users to deposit and withdraw local currency to complete trades, a practice not authorized by the CBN.
As reported by Bitcoin.com News, Binance and the jailed Gambaryan face money laundering charges involving $34.5 million. Gambaryan initially faced tax evasion charges as well, but these were dropped after Binance appointed a local representative.
The Economic and Financial Crimes Commission’s (EFCC) witness in the ongoing case against Binance also targeted the exchange’s peer-to-peer (P2P) platform during his July 5 testimony. He argued that the platform allows individuals to exchange cryptocurrency directly with each other, bypassing the central bank’s oversight.
“The Binance platform facilitates all the processes or P2P transactions as I have just enumerated, either using a Nigerian bank account already stored by users on the Binance platform or the naira wallet account provided by the Binance platform,” Akinwumi added.
Following the EFCC’s testimony, the High Court judge Emeka Nwite postponed the trial to July 16 to allow Binance to cross-examination of the witness.
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