- A Nigerian government minister has alleged that terrorist groups and kidnappers have used Binance to move illicit funds
- The minister claims Binance’s operations have contributed to national insecurity and economic harm
- He has accused the exchange of facilitating money laundering and tax evasion, and says it owes Nigeria $81 billion in lost economic activity
A senior Nigerian official has levelled serious accusations against Binance, alleging that the cryptocurrency exchange has been used by criminals, including terrorists and kidnappers, to transfer illicit funds. Alhaji Mohammed Idris, the Nigerian government’s Minister of Information, told DL News that Binance’s unregulated operations have damaged Nigeria’s economy and undermined its security. As a result, he has called for the company to be held accountable through legal action, including financial penalties in excess of $80 million.
Nigerian Government “Stumbled on Evidence” of Wrongdoing
Nigeria has been fiercely critical of Binance and its actions for a number of years, most notably going as far as holding Tigran Gambaryan, a former U.S. federal agent and Binance’s head of financial crime compliance, and Nadeem Anjarwalla, a regional manager for Africa, in detention last year in connection with the same allegations.
While Anjarwalla fled custody, Gambaryan remained detained for several months before some of the charges against him were dropped and he was allowed to leave on health grounds. Their detentions drew international attention, but charges of tax evasion and lack of oversight remained.
Idris accused Binance of enabling criminal groups to exploit its platform for illicit transactions, as he told DL News:
We stumbled on evidence linking the operations of Binance and these criminal elements—terrorists and their like. This is a matter of national security. No responsible government will allow its financial system to be used by faceless people.
Legal Action and Eye-Watering Financial Claim
The comments come as Binance faces three lawsuits in Nigeria—two criminal cases involving allegations of money laundering and tax evasion and a civil case led by the Federal Inland Revenue Service. That claim demands $81.5 billion in damages, citing lost economic activity allegedly caused by Binance’s operations.
Nigeria is struggling with a serious security crisis at present, driven in part by terrorist financing and ransom payments. According to official figures, over 2.2 million Nigerians were kidnapped in a single year, with $1.4 billion in ransom paid—some of it allegedly via crypto. The minister’s comments suggest growing concern that platforms like Binance could be enabling these payments.
Binance has pleaded not guilty to the criminal charges. A spokesperson for the exchange declined to respond to the minister’s statements but said the company would release further updates when appropriate.
