Canada Fines Binance $4.38 Million For Money Laundering Violations Amid Probe In Nigeria

Canada’s anti-money laundering agency announced that it had imposed a fine of nearly C$6 million ($4.38 million) on cryptocurrency exchange Binance for violating money laundering and terrorist financing laws.

This comes on the heels of the cryptocurrency trading platform’s embattled case with the Nigerian government over similar charges of alleged money laundering amounting to $35 million.

According to Reuters, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) stated that Binance had failed to register as a foreign money services business with the intelligence body despite multiple deadlines.

It added that Binance, which ceased operations in Canada last year, had not reported receiving virtual currency worth C$10,000 ($7,200) or more on 5,902 separate occasions between June 1, 2021, and July 19, 2023.

The latest development comes weeks after Binance’s former CEO Changpeng Zhao was sentenced to four months in prison after pleading guilty to violating U.S. laws against money laundering.

Binance agreed to a $4.32 billion penalty, and Zhao paid a $50 million criminal fine plus $50 million to the U.S. Commodity Futures Trading Commission

Binance Embattled Case in Nigeria
In Nigeria, the cryptocurrency trading platform is facing multiple charges ranging from money laundering to tax invasion to the tune of $35 million.

On its part, Binance CEO, Richard Teng, accused the Nigeria government of blackmail and bribery allocation, alleging that some Nigerian officials sought a bribe of cryptocurrency from its executives, Tigran Gambaryan and Nadeem Anjarwalla, before their detention on February 28, 2024.

“As our employees were leaving the venue, they were approached by unknown persons who suggested to them to make a payment in settlement of the allegations.

“Later that day, our local counsel – representing us at that time – was summoned by the committee through someone purporting to be their agent, who relayed the committee’s terms and instructed our local counsel to advise us.

“Counsel reported back that he had been presented with a demand for a significant payment in cryptocurrency to be paid in secret within 48 hours to make these issues go away and that our decision was expected by the morning,” Teng said in a blogpost statement.

FG accuses Binance of Diversionary Tactics and Blackmail

Meanwhile, the federal government reacted to the allegation, accusing Binance of diversionary tactics and blackmail.

The government said the claim is part of an orchestrated international campaign by Binance to undermine the Nigerian government.

The spokesperson of the government added that the allegations by Binance CEO lack “any iota of substance,” and it is an attempt to “blackmail” the government.

“This claim by Binance CEO lacks any iota of substance. It is nothing but a diversionary tactic and an attempted act of blackmail by a company desperate to obfuscate the grievous criminal charges it is facing in Nigeria.

“The facts of this matter remain that Binance is being investigated in Nigeria for allowing its platform to be used for money laundering, terrorism financing, and foreign exchange manipulation through illegal trading,” the spokesperson added.

Backstory

On February 28, Nairametrics reported that Nigeria officials detained two senior Binance executives.

Nadeem Anjarwalla, a 37-year-old British Kenyan who serves as the regional manager for Africa, and Tigran Gambaryan, a 39-year-old American in charge of financial crime compliance at Binance.

• The executives visited Nigeria in response to the country’s recent crackdown on various cryptocurrency trading platforms.

• During their stay, they were apprehended by the ONSA, and their passports were confiscated.

• In response to the detention of its executives, Binance discontinued the trading of the naira against bitcoin and tether cryptocurrencies on its exchange.