Binance faces uncertainty over Nigerian money laundering charges, here’s what to expect


  • Binance faces money laundering charges in Nigeria, the court has postponed the case until October 11. 
  • Binance co-founder He Yi recently commented on regulatory pressures faced by the largest crypto exchange platform, in an interview. 
  • The exchange is focused on the next wave of crypto adoption through web3 wallets, stablecoin business and addressing global compliance. 

Binance, one of the largest crypto exchange platforms by volume, is currently facing uncertainty in a lawsuit in Nigeria. The exchange faces money laundering charges and is accused of manipulating the exchange rate. 

The Nigerian court postponed its decision in the lawsuit until October 11. In the meanwhile, Binance battles regulatory pressures, and global compliance issues. 

The court decision in the Binance case could affect how the exchange approaches markets with regulatory uncertainty, in line with the comments made by co-founder He Yi, in a recent interview. 

The developments could affect Binance’s user acquisition and native token Binance Coin (BNB). The court case could determine Binance’s future as an exchange and crypto services provider in Nigeria. 

Binance battles US SEC and Nigerian government in the court

The legal battle with the Nigerian government could have lasting implications for Binance as it draws international attention. US Congressmen urged the American Embassy in Nigeria to advocate for Binance executive Tigran Gambaryan’s release on humanitarian grounds. Arkansas Republican representative French Hill led the plea to urge lawmakers to intervene and support Gambaryan’s release. 

Binance is battling the charges, which include four counts of tax evasion and money laundering. The Nigerian Government holds Binance responsible for the local currency crisis. According to the allegations, Naira was already in a state of deterioration and Binance emerged as a top choice for traders and resulted in currency manipulation, negatively impacting their local currency. 

Binance is faced with legal and regulatory pressures worldwide. While the exchange defends against the allegations in Nigeria, it faces the SEC’s lawsuit alleging violation of US securities laws. 

What’s next for Binance, silver lining?

In a recent interview with asian journalist Colin Wu, Binance co-founder and Changpeng Zhao’s partner He Yi said Binance could invest in more companies and foster innovation in crypto. Binance added a new business, the Square, in 2023. 

The Square is focused on attracting users who are not very keen on crypto to experience the space and gradually shift towards crypto investments. While Binance’s stablecoin business faces regulatory hurdles and costs, He Yi says the focus is on web3 wallets. 

He Yi is quoted as saying:

Competitors have performed well with external storage wallets, but everyone has a different understanding of Web3 wallets. Many peers consider them as a backup plan (Plan B) for exchanges, allowing transactions without KYC and AML when exchange businesses are affected by regulation. However, we believe Web3 wallets as a Plan B still cannot avoid regulation. Therefore, we hope to make Web3 wallets a long-tail business, covering on-chain services that existing exchange users cannot access, such as staking and on-chain transactions.

Binance looks at web3 wallets as a viable business opportunity and could continue to onboard the next generation of crypto traders through the same. 

He Yi stressed the importance of crypto regulation and weighed its long-term implications on Binance and the associated cost and speed bottlenecks, in rolling out newer and effective business models and products. 

BNB hovers around $570, erases 1% value on the day

Binance’s native token BNB trades at $568.70 at the time of writing, erasing 1% of its value, early on Wednesday. The token could extend its gains by 10.31% and rally towards the lower boundary of the Fair Value Gap (FVG) formed between June 9 low of $670.30 and June 11 high of $629.

The momentum indicator, Moving Average Convergence Divergence (MACD) shows there is underlying positive momentum in Binance Coin’s price trend. 

BNB faces resistance at $588.30, the 50% Fibonacci retracement of the decline from the June 6 top of $721.80 to the July 5 low of $454.80.

BNB

BNB/USDT daily chart 

BNB could find support at the FVGs formed between July 13 and July 15 ($539.40 and $543.80) and July 14 and July 16 at ($547.70 and $554.40) as seen in the chart above. Once BNB sweeps liquidity at the FVGs, it could extend gains further. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Tether mints another $1,000,000,000 USDT on Justin Sun’s Tron blockchain: TRX traders could profit

Tether mints another $1,000,000,000 USDT on Justin Sun’s Tron blockchain: TRX traders could profit

Tether, the world’s largest stablecoin issuer, has minted another $1 billion worth of USDT on the Tron blockchain according to Whale Alert data published Friday.

More Tron News
XRP Price Prediction: XRP back above $2 liquidating $18M in short positions, will the rally continue?

XRP Price Prediction: XRP back above $2 liquidating $18M in short positions, will the rally continue?

Ripple (XRP) seeks support above $2.0020 on Thursday after gaining 14% in the past 24 hours. The token trades at $2.0007 at the time of writing, reflecting growing bullish sentiment across global markets.

More Ripple News
Avalanche Octane update goes live on mainnet, slashes transaction fees significantly

Avalanche Octane update goes live on mainnet, slashes transaction fees significantly

Avalanche (AVAX) Octane update, live on mainnet on Thursday, introduces a dynamic fee mechanism to the C-Chain. This mechanism reduces transaction costs during high network activity by adjusting real-time fees, as per ACP-176.

More Avalanche News
Dogecoin soars as 21Shares files S-1 for DOGE ETF

Dogecoin soars as 21Shares files S-1 for DOGE ETF

Dogecoin (DOGE) rallied nearly 12% on Wednesday after asset manager 21Shares filed an S-1 application with the Securities & Exchange Commission (SEC) to launch the 21Shares Dogecoin exchange-traded fund (ETF).

More Dogecoin News
Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market

Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market

Bitcoin (BTC) price remains under selling pressure and trades near $84,000 when writing on Friday after a rejection from a key resistance level earlier this week.

Read full analysis
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

BTC

ETH

XRP