REGULATION | Central Bank of Nigeria Maintains Binance Carried Out ‘Hidden Operations’ Without Authorization

The Central Bank of Nigeria (CBN) has concluded its testimony against cryptocurrency platform Binance, maintaining that it carried out “hidden operations” in Nigeria without authorization, according to local reporting.

Dr. Olubukola Akinwunmi, Director of Banking Supervision at the CBN, wrapped up his testimony before Justice Emeka Nwite of the Federal High Court in Abuja, in a criminal trial initiated by the Economic and Financial Crimes Commission (EFCC) in 2024.

The EFCC has accused Binance and two of its former executives, Tigran Gambaryan and Nadeem Anjarwalla, of conspiring to conceal the origin of proceeds from alleged unlawful activities in Nigeria, including $35.4 million. The alleged offences are said to contravene provisions of the Money Laundering (Prevention and Prohibition) Act, 2022. Binance has denied the allegations.

During cross-examination by Binance’s counsel, Akinwunmi confirmed that the platform was accessible and marketed to Nigerians at the time under review.

When asked whether cryptocurrency trading was prohibited, he said: “I am aware that cryptocurrency trading and its usage were restricted at some point in Nigeria.” 

On the evolution of the sector, he added: “I am aware that development in cryptocurrency has been around for upwards of ten years.” 

Responding to questions on whether Binance attempted to conceal its activities, Akinwunmi maintained that “their usage of the Nigerian banking system was hidden by the use of pseudonyms by users of the platform.”

He also told the court: “There were times when there was free access to its platform, and there were also times when it was not accessible except through covert channels.”

However, the CBN official declined to confirm whether Binance deliberately intended to hide its operations and said he could not state whether any official order classified cryptocurrency as foreign exchange at the time.

Following his testimony, the court discharged Akinwunmi and adjourned proceedings to May 15, 2026 for continuation of the trial.

The case stems from a broader crackdown on crypto activity in Nigeria.

In early 2024, the National Security Adviser classified cryptocurrency trading as a national security issue. The CBN subsequently directed fintech firms including OPay, Moniepoint, Paga and PalmPay to restrict accounts linked to crypto transactions.

Binance also came under scrutiny over allegations of currency manipulation and money laundering, leading the platform to disable its peer-to-peer services for Nigerian users in February 2024.

Two senior Binance executives were detained by Nigerian authorities that same month. Anjarwalla later fled the country while Gambaryan was eventually released on health grounds following diplomatic engagements.

Separately, Nigeria’s Securities and Exchange Commission has pushed for tighter crypto regulations, including removing the Naira as a trading pair on peer-to-peer platforms. Meanwhile, the Federal Inland Revenue Service (FIRS) has also filed tax-related charges against Binance, with both parties exploring an out-of-court settlement.

A report on the settlement is expected on May 12, 2026.

Stay tuned to BitKE for the latest crypto regulatory updates across Africa.

Join our WhatsApp channel here.

Follow us on X for the latest posts and updates

Join and interact with our Telegram community

_________________________________________