The Nigerian court has again postponed proceedings involving Binance, one of the world’s largest cryptocurrency exchanges, and two of its executives — Tigran Gambaryan and Nadeem Anjarwalla, pushing the hearing date to May 17. The decision to delay the case comes amid ongoing legal battles between Binance and regulatory authorities in Nigeria, highlighting the complexities and uncertainties surrounding cryptocurrency regulation in the country.
A representative for Gambaryan’s family confirmed the postponement to Blockworks. Gambaryan has been held in the nation since late February.
The postponement is merely the most recent in a string of setbacks for Gambaryan, who was sent to the Kuje Correctional Facility by a Nigerian court. Two years ago, the Islamic State launched an attack on the infamous prison as part of a breakout.
The court date was postponed due to Thursday’s adjournment, which primarily addresses the money laundering charges. A second trial for tax evasion is also scheduled for Binance, Anjarwalla, and Gambaryan; it was initially scheduled for May 17 of this year.
The case, which centers on allegations of regulatory non-compliance and financial misconduct against Binance, has attracted significant attention from Nigeria’s cryptocurrency community and regulatory authorities. The postponement of the hearing represents the latest development in a series of legal challenges facing Binance as it seeks to navigate the regulatory landscape in Nigeria and other jurisdictions worldwide.
According to Reuters, the decision was made because Binance’s attorney said they had not yet received the paperwork needed to prepare their case.
While the specific details of the case have not been disclosed, reports suggest that it pertains to allegations of operating without the necessary licenses and permits and concerns about potential money laundering and terrorist financing activities facilitated through the Binance platform. These allegations have prompted regulatory scrutiny and legal action against Binance by Nigerian authorities, raising questions about the future of cryptocurrency regulation in the country.
Interpol Africa’s Garba Umar stated earlier this week that his organization had Anjarwalla’s documentation and was working on it. The Interpol website states that Anjarwalla has not yet received a red notice, which notifies law enforcement that a person is wanted for arrest.
On Tuesday, Umar stated to a local TV station, “The process is ongoing.”
Later this year, Binance’s relationship with Nigeria soured, and the cryptocurrency exchange stopped supporting the Naira. Nigeria, on the other side, declared that $26 billion had gone through Binance Nigeria and vowed to penalize Binance.
The postponement of the Binance case to May 17 provides additional time for both parties to prepare their arguments and gather evidence before the hearing. It also offers an opportunity for further negotiations and discussions aimed at resolving the dispute through alternative means, such as out-of-court settlements or regulatory compliance measures.
The outcome of the Binance case is likely to have significant implications for the cryptocurrency industry in Nigeria and beyond. As one of the world’s largest and most influential cryptocurrency exchanges, Binance plays a central role in facilitating the buying, selling, and trading of digital assets for millions of users globally. Any adverse ruling or regulatory action against Binance could impact its operations, reputation, and broader cryptocurrency market.
In recent years, Nigeria has emerged as a key market for cryptocurrency adoption and innovation, driven by a young and tech-savvy population, high mobile penetration rates, and a growing interest in alternative financial systems. However, the regulatory environment in Nigeria remains uncertain, with regulators grappling to define clear rules and guidelines for the cryptocurrency industry amid rapid technological advancements and evolving market dynamics.
As the Binance case unfolds and regulatory scrutiny intensifies, stakeholders within the cryptocurrency community, including exchanges, investors, and developers, will closely monitor developments and their potential implications for the future of cryptocurrency regulation in Nigeria and other jurisdictions. The case outcome could shape the regulatory landscape for years to come, influencing the growth and adoption of cryptocurrencies and blockchain technology in Nigeria and beyond.
