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Binance breached Nigerian law, operated Naira P2P in exchange of crypto assets – Witness

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Detained Binance executive, Tigran Gambaryan
Detained Binance executive, Tigran Gambaryan
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A Director with the Security and Exchange Commission (SEC), Abdulkadir Abbas, on Friday, told a Federal High Court, Abuja how Binance Holdings Ltd breached the Nigerian law to operate naira peer-to-peer services in exchange of crypto assets.

Abbas, the Director of Registration, Exchanges and Market Infrastructure Department at SEC, disclosed this while testifying before Justice Emeka Nwite in the trial of Binance and two of its officials on a charge bordering on money laundering.

Abbas, the 1st prosecution witness (PW1), said that due to the large number of Nigerian users, who were leveraging on the model, it adversely affected the official exchange rate.

“As a matter of fact, the Binance platform became a reference point for determining the exchange rate,” he added.

The News Agency of Nigeria (NAN) reports that the Economic and Financial Crimes Commission (EFCC) had filed a 5-count charge against Binance and Tigran Gambaryan as 1st and 2nd defendants, while listing Nadeem Anjarwalla as being at large.

Led in evidence by prosecuting lawyer, Ekele Iheanacho, Abbas said the operations of company negatively impacted Nigeria’s financial system.

The director, who is the 1st prosecution witness (PW1), told the court that not only did Binance operate in Nigeria illegally, its mode of operation circumvented the normal currency trading route put in place by regulators.

The witness said he met Gambaryan once during a meeting at the office of the National Security Adviser (NSA).

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Abbas said Binance and its officials were invited by the NSA to the meeting to discuss its operations and the impact on the Nigerian economy.

“At the meeting, it was clearly observed that the 1st defendant (Binance)’s mode of operation is against the provision of the Investment and Securities Act, 2007

“Apart from not being registered in Nigeria and making public solicitation without authorisation, the 1st defendant operates a naira peer-to-peer (P2P) in exchange of crypto assets.

“The naira P2P being deployed in the transaction, circumvent the normal trading route.

“This is because the Central Bank of Nigeria (CBN) has banned banks from providing certain settlement platforms for crypto exchange.

“As a result of the naira P2P deployed by Binance, and coupled with the large number of Nigerian users, who were leveraging on that model, it adversely affected the official exchange rate,” he said.

According to him, the naira P2P model created uncertainty and high level of volatility in the exchange rate as Nigerian users trade arbitrarily on the platform, thereby impacting negatively on financial system stability.

“The naira P2P rate quoted on Binance’s platform, is not referencing any official rate and its continuous operation affects the value of our naira.

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“This was one of the serious concerns raised at the meeting we had at the office of the NSA,” the PW1 said

He added that the rate at which naira was being sold on Binance’s platform had no relationship with the official exchange rate.

Abbas said the rate on Binance’s platform was not driven by any fundamentals, adding that it got to a stage where the value of the naira was determined based on the rate quoted on Binance’s platform.

He said the rate had no correlation or relationship with the official rate.

He said by operating its platform, which was not registered or regulated by the SEC in Nigeria, Binance was in breach of the extant provisions of the Investment and Securities Act, 2007

“In addition, by making public solicitation to Nigerians without due authorisation by the SEC, the 1st defendant violated the Investment and Security Act,” the witness said.

At the conclusion of his evidence-in-chief, lawyer to Binance, Babatunde Fagbohunlu, SAN, said he needed to retrieved some documents from the court with which he planned to cross examine the witness.

Fagbohunlu said he submitted an application to that effect earlier in the day, which was not yet approved.

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He sought a short stand down to enable him confirm if his application was approved and if the documents could be made available to him.

Justice Emeka Nwite noted that since his application was filed today, it might be difficult to have it approved if the case was stood down.

Justice Nwite elected to adjourn till May 23 at 12 noon for cross examination.

NAN reports that Anjarwalla, who was in lawful custody with Gambaryan, escaped and fled the country on March 22.(NAN)

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BREAKING: Obidient Movement threatens nationwide protests over Farotimi’s arrest

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The Obidient Movement has issued a strong warning, threatening nationwide protests if human rights lawyer and activist Dele Farotimi is not immediately released from custody.

This development follows an order by a Magistrate Court in Ado Ekiti to remand Farotimi over allegations of defaming a prominent legal figure and founder of Afe Babalola University, Aare Afe Babalola, SAN.

Farotimi is accused of tarnishing Afe Babalola’s reputation through statements in his book, Nigeria and Its Criminal Justice System.

His arrest has sparked outrage among supporters and human rights advocates, with many viewing it as an attack on free speech.

In a statement released on Wednesday, Dr. Yunusa Tanko, the National Coordinator of the Obidient Movement, condemned Farotimi’s detention and called for his immediate and unconditional release.

Tanko argued that the incident raises serious concerns about the misuse of power and suppression of fundamental freedoms in Nigeria.

“This government has inflicted unbearable pain on Nigerians, from the reckless hike in fuel prices to skyrocketing food costs, leaving citizens in a dire state of poverty and hunger,” Tanko said.

He criticized the government’s policies, including the floating of the naira, which has caused the exchange rate to soar and intensified economic hardship.

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He also highlighted the increasing collapse of businesses, skyrocketing interest rates, and failing public services like health care and electricity.

Tanko described Farotimi as a steadfast advocate for human rights, known for speaking out against injustice and defending marginalized communities.

“His arrest is a blatant attempt to silence him and intimidate others who dare to challenge the status quo,” Tanko stated.

The statement further detailed the Obidient Movement’s grievances against the government, including widespread hunger, insecurity, and the inability of civil servants to meet basic needs due to stagnant wages and rising living costs. It highlighted the plight of families unable to afford food, healthcare, and education, forcing many to abandon plans for childbearing amidst the economic crisis.

Tanko warned that if Farotimi is not released immediately, the movement would invoke its constitutional rights to stage protests nationwide. “We unequivocally condemn this abuse of power and demand that the Nigerian Police respect Dele Farotimi’s fundamental human rights as enshrined in Section 40 of Chapter 4 of the 1999 Constitution.”

The statement also called on the international community to monitor the situation and stand in solidarity with Farotimi and others advocating for justice and human rights in Nigeria. Tanko alleged that the government’s actions are part of a broader campaign to silence opposition voices, including Peter Obi, the leader of the Obidient Movement and a vocal critic of the administration.

“We are aware of a systematic plan to intimidate and silence His Excellency Peter Gregory Obi for speaking truth to power. We assure the public that we will resist any form of cruelty or abuse of power against him or any other advocate for justice,” Tanko declared.

The movement’s ultimatum underscores the growing tension in Nigeria over perceived abuses of power, economic mismanagement, and the suppression of dissent, as citizens increasingly demand accountability from the government.

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Former Edo NLC chairman slumps, dies after encounter with police

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Comrade Kaduna Eboigbodin, the former Chairman of the Nigerian Labour Congress (NLC) in Edo State, has reportedly died after a confrontation with police officers at a roadblock in the Upper Sokponba area of Benin City.

In response, civil society groups have issued a 48-hour ultimatum for the police to identify and hold accountable those responsible for the incident.

Eboigbodin, who was driving with his wife, was reportedly stopped on Monday by the police.

According to Rev. David Ugolor, Executive Director of the African Network for Environment and Economic Justice (ANEEJ), Eboigbodin’s wife stated that the officers demanded the vehicle’s papers, which were up to date.

They raised concerns about a discrepancy between the car’s glass engraving and its plate number.

Despite offering an explanation, the police allegedly seized his documents, ordered his arrest, and called for a tow truck to impound the vehicle.

The situation quickly escalated, and Eboigbodin reportedly collapsed at the scene.

His wife and bystanders rushed him to the hospital, but he was pronounced dead on arrival.

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Witnesses claim the officers fled without offering any help.

The Edo State Police Command has denied the allegations of misconduct.

Police spokesperson SP Moses Yamu stated that the account provided by civil rights groups does not match the version of events given by Eboigbodin’s wife to the authorities.

Civil society organizations, including ANEEJ and the Edo Civil Society Organizations (EDOSCO), have called for justice for Eboigbodin.

Rev. Ugolor remembered him as a dedicated leader, former NLC Chairman in Edo State, National Vice Chairman of the Nigerian Union of Local Government Employees (NULGE), and a pioneer in various civil society movements.

Comrade Omobude Agho, Coordinator-General of EDOSCO, expressed shock at the police’s actions, stressing that Eboigbodin was a respected and well-known figure in the state.

The groups have given the police 48 hours to identify the officers involved and provide a full explanation of the incident.

They have also emphasized the need for reform within the Nigerian Police Force and greater accountability for officers’ conduct.

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Eboigbodin’s death has sparked widespread anger and demands for justice from labor unions, civil society organizations, and the public.

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Former Presidential Adviser, Prof Ogbu advocates for Institution of Chartered Journalists

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Former Economic Adviser to the President on economic matters, Professor Osita Ogbu, OON, has made a case for the establishment of the institution of Chartered Journalists as a means of distinguishing core professional Journalists from quacks.

Ogbu made this call while delivering a lecture on the Theme: “Journalism in a Developing Economy: The Dignity of Professional Practice”, at the ongoing NUJ Enugu State Council Press Week.

Ogbu who is a Professor of Economics and global economic consultant, called for exhibition of integrity, attitudinal change and professionalism by Journalists in the discharge of their duties.

He said, “Journalism is not an all comers affair and practitioners must imbibe reading culture, be knowledgeable, package and develop themselves, dress well and serve the public interest through shaping public discourse” .

“The role of Journalists is to interface and act as intermediary between the government and the governed as well as shape the society for the better,”

Professor Ogbu while describing Journalism as a noble profession advised Journalists to engage in constant search for knowledge to distinguish them from quacks.

He commended the organizers of the 2024 NUJ Enugu Press Week and Conference chaired by Comrade Emmanuel Ikechukwu- Jonathan for the choice of the topic and hoped for internalization of knowledge derived from the lecture.

Earlier in his remark, the Chairman of NUJ Enugu Council, Comrade Sam Udekwe, explained that the Press week was an annual event meant to bring members together to explore ways of improving on their profession and sharing conviviality as well as honouring those who distinguished themselves in their fields of endeavor.

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The Secretary of the Press Week Committee, Comrade Ignatius Okpara, in his remarks, appreciated Prof Osita Ogbu for his brilliant lecture and members of the union for their presence.

The grand finale of the NUJ Press Week comes up on Friday 6th December at the press centre in Enugu.

The high point of the event was the investiture of NUJ Icon of Democracy Award on Hon. Chidi Obetta, Member Representing Nsukka /Igbo-Eze South Federal Constituency at the House of Representatives National Assembly, Abuja, and NUJ Corporate Award on Afrinvest West Africa Limited.

While Obetta was honored in recognition of his numerous completed projects and many Empowerments in his Constituency, Afrinvest West Africa Limited was honored in recognition of their service to corporate space in Africa and humanity.

The Group Managing Director of Afrinvest West Africa Limited, Dr. Ike Chioke received the award on behalf of Afrivest while Hon. Okwy Ossai received the award for Hon. Obetta.

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