Nigeria’s top officials from Binance, the global cryptocurrency exchange, are currently involved in a legal battle with the country’s security forces. Tigran Gambaryan, an executive from Binance who has been detained, and Nadeem Anjarwalla, the company’s African manager, have both filed lawsuits against Nigeria’s National Security Adviser (NSA) and the Economic Financial Crimes Commission (EFCC), accusing them of violating their basic human rights.
Gambaryan’s detention and subsequent lawsuit against Nuhu Ribadu, the Director of EFCC, were handled by the Aluko and Oyebode Law Firm. As a US citizen working in Binance’s financial crime compliance department, Gambaryan was detained and had his passport confiscated. He argues that his arrest and the seizure of his passport violated the Nigerian Constitution, thereby denying him his freedom and liberty.
Following suit, Jok Katua, who managed to escape from prison on March 22nd, filed a second petition demanding that the court respect his rights. Both executives highlight the actions of the ONSA and EFCC as contributing factors to the growing divide between Nigerian authorities and the cryptocurrency giant.
Gambaryan’s petition seeks several remedies, including his release from custody, the return of his passport, a restraining order preventing further detention related to Binance investigations, a public apology, and compensation for legal expenses.
He argues that his detention was a direct result of Binance’s refusal to provide information to the Nigerian government during his visit to the country, which the government claims was within its legal rights.
The initial proceedings for the defendants’ case fell through due to a lack of legal representation. The next court sessions have been scheduled for April 8th, which has led to a sense of low self-esteem and reinforced dependency. The individuals involved are therefore affected by both the lack of legal representation and due process issues.
In addition to these legal battles, there are pending tax avoidance charges that are expected to be heard in the federal court in Abuja. Binance and its executives are accused of not being registered with local regulatory bodies, evading tax liabilities, assisting clients in tax evasion, and failing to comply with Value Added Tax invoicing and deduction requirements.
These allegations highlight the challenges faced by crypto traders in Nigeria and the government’s stance on cryptocurrency regulation. The outcome of these cases will have a significant impact on global crypto compliance strategies, as it will shape how crypto companies navigate compliance and government engagement in emerging markets.
Furthermore, these legal battles raise important questions about the relationship between the growth of financial technology and the need to comply with legal procedures and tax obligations. Cryptocurrency entities, global legal professionals, and regulators will closely monitor the proceedings to understand the future of cryptocurrency regulation and how to safeguard fundamental rights in this rapidly expanding industry.
