In the ongoing trial of Binance Holdings Limited and its Executive Officer, Tigran Gambaryan before Justice Emeka Nwite at the Federal High Court, cross-examination of the First Prosecution Witness, Abdulkadir Abbas, continued on Tuesday, July 2, 2024.
The Economic and Financial Crimes Commission (EFCC) is prosecuting Gambaryan and Binance Holdings Ltd on charges related to alleged tax evasion, currency speculation, and money laundering totaling $34.4 million.
Abbas, testifying at the resumed session, highlighted discrepancies between Binance’s operations and the regulatory framework of the Securities and Exchange Commission (SEC).
Abbas emphasized that Binance’s activities did not adhere to SEC’s laws governing digital assets providers, stating that entities must register and pay prescribed fees before commencing operations in Nigeria.
He underscored SEC’s role in regulating Digital Asset Offering Platforms (DAOP), Digital Assets Exchanges (DAE), and Digital Assets Custodians (DAC), each requiring specific registration and processing fees.
Under questioning from defence counsel Babatunde Fagbohunlu, SAN, Abbas affirmed the existence of minimum trade capital requirements and explained SEC’s mandate to issue rules aimed at regulating Nigeria’s capital markets.
When pressed on his expertise in digital asset activities, Abbas asserted his familiarity with SEC’s rules governing various digital asset functions.
The defence, represented by Mark Mordi, SAN, had earlier argued that SEC’s 2007 Investment and Security Act did not explicitly cover virtual assets. Abbas countered, pointing to SEC’s regulations under Section 315, which he argued encompassed virtual assets under securities definitions.
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Explaining SEC’s recent focus on virtual assets, Abbas attributed it to market dynamics and SEC’s effort to expand regulatory clarity within existing laws.
He highlighted SEC’s guidelines on the regulatory incubation program, clarifying the regulatory framework for entities dealing with digital and virtual assets in Nigeria.
The trial continues to unfold as both sides present their arguments in this high-profile case involving significant implications for Nigeria’s financial regulatory landscape.
Binance didn’t Register with SEC – Witness
The cross-examination of the First Prosecution Witness, PW1, Abdulkadir Abbas, in the ongoing trial of Binance Holdings Limited and its Executive Officer, Tigran Gambaryan, before Justice Emeka Nwite of the Federal High Court, continued… pic.twitter.com/GC7YH2wGGy
— EFCC Nigeria (@officialEFCC) July 3, 2024
and then