Binance, one of the world’s largest cryptocurrency exchanges, is entangled in significant legal battles in London and Nigeria. These cases involve allegations of anti-competitive behavior and severe financial crimes, placing the company under intense scrutiny.
In London, Binance is seeking to dismiss most of a lawsuit potentially valued at up to £10 billion ($12.8 billion). The case, brought on behalf of over 200,000 Bitcoin Satoshi Vision (BSV) owners, alleges that Binance and other exchanges colluded to delist BSV, causing its value to plummet and preventing it from becoming a top-tier cryptocurrency.
The plaintiffs argue that BSV’s delisting in 2019 was an anti-competitive move that severely damaged its market potential. Binance maintains that individuals who retained BSV did so by choice and had the opportunity to reinvest in other cryptocurrencies.
Binance’s lawyer, Brian Kennelly, argued that investors’ decision to keep BSV was a personal choice; they could have sold it after the delisting. BSV Claims’ lawyers insist this issue should be tried alongside the broader case, seeking a comprehensive resolution to the alleged anti-competitive actions.
The lawsuit also touches on the controversial claims of Australian computer scientist Craig Wright, who asserted he was Bitcoin’s creator, Satoshi Nakamoto. Wright’s association with BSV and subsequent legal findings of document forgery complicate the case.
Binance Faces Legal Battle in Nigeria
Meanwhile, in Nigeria, Binance and its executive Tigran Gambaryan face charges of illegal cryptocurrency trading. Nigerian Minister of Information Mohammed Idris stated that the trial follows the country’s legal procedures, with the next hearing scheduled for June 20, 2024.
Minister Idris assured that the legal process has been rigorous, with prosecutors confident in their case based on gathered evidence. Binance can defend itself against serious money laundering charges, tax evasion, and foreign exchange violations in court.
This development follows a plea by 12 U.S. politicians to President Joe Biden, urging intervention to secure Gambaryan’s release. They argue that the charges are baseless and part of a coercion tactic by Nigerian authorities to extort Binance.
Despite these claims, Minister Idris emphasized that Gambaryan has received appropriate consular access and that all actions align with diplomatic protocols. The denial of bail was due to Gambaryan being considered a high-flight risk, especially after his co-defendant fled the country illegally.
In February, the Nigerian government arrested Gambaryan and Nadeem Anjarwalla on money laundering and tax evasion charges. Anjarwalla evaded custody and fled to Kenya, while Gambaryan remains in the Kuje correctional center. This followed a government crackdown on cryptocurrency to curb currency speculation.
The Nigerian court has mandated Binance to provide data on Nigerian traders using its platform, intensifying the legal pressure on the exchange. These twin legal challenges in London and Nigeria highlight the increasing regulatory and legal hurdles facing Binance in its global operations.
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