According to Nigerian financial media Nairametrics, the local high court rejected the fundamental human rights lawsuit filed by Binance executive Nadeem Anjarwalla against the National Security Office (NSA) and the Economic and Financial Crimes Commission (EFCC) on Thursday, citing the absence of legal representation from both sides as the reason for dismissing the case.
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Nigerian court dismisses fugitive Binance executive’s human rights lawsuit
Detained executive contracts malaria, criticized for slow treatment process
Bumpy regulatory road for Binance
The Abuja Federal High Court ruled yesterday (19) to dismiss Anjarwalla’s human rights lawsuit against the NSA and EFCC, as both legal teams were absent during the proceedings.
Judge Inyang Ekwo stated that Anjarwalla’s lawyer, Tonye Krukrubo, had initially claimed to replace him with legal representation, but no one appeared in court as a result:
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It appears that this did not happen, and therefore, due to the lack of proper prosecution procedures, I order the dismissal of this case.
In March of this year, the Binance Nigeria head cited the 1999 Nigerian Constitution amendment, accusing the Nigerian government of violating his basic rights by previously detaining him and confiscating his passport:
The defendants (NSA and EFCC) continuous detention of the applicant (Anjarwalla) has caused immense difficulties and emotional stress to the applicant, his wife, children, and other family members.
Currently, Anjarwalla’s whereabouts have been traced to Kenya, and he has been issued a red notice by the International Criminal Police Organization (ICPO).
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Meanwhile, another detained Binance compliance executive, Tigran Gambaryan, has also filed a similar lawsuit, with a court hearing scheduled for July 9.
Clearly, Gambaryan is currently facing the enforcement pressure in Nigeria alone, and he collapsed in court last month due to contracting malaria and severe pneumonia.
His wife, Yuki, expressed concern that although the court allowed him to be transferred to a hospital for treatment, the institution has been very slow in handling the transfer process:
Despite being allowed by the court to receive treatment in the hospital, he is still being kept in the prison that made him sick, which shocks me.
And she pleaded, “He hasn’t done anything wrong, he is only suffering because he accepted an invitation to attend a meeting in Abuja.”
In February of this year, Nigerian authorities accused Binance of manipulating exchange rates, owing taxes, and participating in money laundering, seeking billions of dollars in compensation and detaining two of its executives.
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Last month, Binance was also fined CAD 6 million (approximately USD 4.4 million) by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for failing to register as a foreign money services business (FMSB) and failing to report cryptocurrency transactions over USD 10,000.
Earlier this month, Binance also appealed the sanction, claiming that it had sought to operate in the country but had never been able to due to strict regulations:
We did not launch services specifically for Canada, and any involvement with the Canadian market is a byproduct of Binance’s global business.
Over the past two years, Binance has faced obstacles in regulatory compliance in various countries, and has been under scrutiny by regulatory authorities in countries including the Philippines, India, and Nigeria, following lawsuits with the Commodity Futures Trading Commission (CFTC) and the U.S. Department of the Treasury last year.
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Difficult road to compliance! Following crackdowns in India and Nigeria, Binance faces comprehensive ban in the Philippines
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Cryptocurrency regulation
Compliance
Nigeria
Binance
Further reading
IMF suggests Nigerian authorities regulate and implement anti-money laundering measures for cryptocurrency exchanges, instead of strict bans
Fugitive Binance executive found in Kenya, local blockchain advocacy organization fears he may not be brought to justice