The bail request for Tigran Gambaryan, an executive at Binance, has been postponed by a Nigerian court. Gambaryan is currently being held at the Kuje government center. The Economic and Financial Crimes Commission (EFCC) applied to the Federal High Court in Abuja, presided over by Justice Emeka Nwite, to request an extension of time to respond to new allegations made by Gambaryan’s lawyer.
Gambaryan, who is 39 years old and the head of financial crime compliance and foreign exchange violations at Binance, is facing charges of money laundering and related offenses brought by the United States. The EFCC alleges that Binance, particularly Gambaryan, secretly concealed the source of approximately $35.4 million obtained through criminal activities. According to the allegations, Binance violated forex laws in Nigeria without proper authorization between January 2022 and January 2024. The EFCC also claims that Gambaryan collaborated with another unidentified executive to obscure the origin of these funds, as stipulated in the Money Laundering (Prevention and Prohibition) Act, 2022, and the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act.
In addition to these charges, Binance is facing other lawsuits from the Federal Inland Revenue Service (FIRS) for tax evasion, further highlighting the attention the company is receiving in Nigeria. However, Binance has not engaged in discussions with the government to address the specific issues related to its operations in the country.
The ongoing litigation took a new turn when Gambaryan filed a separate lawsuit claiming that his constitutional right to freedom was violated by the Nigerian authorities during his previous detention alongside Nadeem Anjarwalla, Binance’s regional manager for Africa, on February 28. The arrests were made as part of the government’s efforts to crack down on the use of cryptocurrencies for currency speculation and stabilize the economy.
This legal process has significant implications for the individuals involved and the cryptocurrency industry in Nigeria. The government’s clampdown on cryptocurrencies is part of its broader strategy to control speculative currency trading, which has led to a significant depreciation of the naira. The currency has lost 70% of its value against the US dollar since last year’s forex reforms.
As the trial progresses, the international community and stakeholders within Nigeria will closely monitor the impact of these lawsuits on foreign business operations and the regulatory framework for doing business in the country. The bail hearing scheduled for April 22 could be a crucial turning point in this high-profile case, with potential far-reaching implications for foreign executives and multinational companies navigating Nigeria’s complex legal landscape.
