Nigeria withdraws charges against Binance’s executive
Nigeria’s legal battle with Binance executive Tigran Gambaryan (pictured above) has taken a new turn. Gambaryan faced charges of money laundering worth $35.4 million. However, amidst the ongoing court proceedings and rising health concerns, the Economic and Financial Crimes Commission (EFCC) has decided to drop the charges to allow him to seek medical treatment abroad.
Background of Case
Tigran Gambaryan is a key figure at Binance, serving as the platform’s head of financial crime compliance. His primary role involves overseeing regulatory compliance and preventing illicit activities, such as money laundering and tax evasion.
In February, Gambaryan’s business trip to Nigeria took a dramatic turn when he was arrested along with his colleague, Nadeem Anjarwalla. Nigerian authorities accused them of facilitating money laundering activities on Binance, the world’s largest cryptocurrency exchange.
The core of the allegations against Gambaryan and Binance centred on money laundering. Authorities accused them of laundering $35.4 million, a claim that both parties denied vehemently. Beyond money laundering, Binance faced accusations of manipulating exchange rates and speculating on Nigeria’s local currency, the Naira. The Federal Inland Revenue Service (FIRS) of Nigeria also filed tax evasion charges against Binance. While the money laundering charges against Gambaryan were dropped, the tax evasion case is still being actively pursued by the authorities.
Court decision to drop charges
Following Gambaryan’s arrest, his legal team made several attempts to secure his release on bail. However, the High Court repeatedly rejected these appeals, citing him as a potential flight risk. Gambaryan’s health condition became a focal point in the case, with his family raising alarms about his deteriorating condition at Kuje Correctional Centre. He suffers from a herniated disc, which reportedly worsened due to his time in detention, potentially causing permanent damage.
His wife, Yuki, was vocal about the need for urgent medical attention, fearing that his prolonged detention could lead to irreversible damage. “The herniated disc in his back has worsened to the point where it might leave permanent damage and affect his ability to walk,” Yuki said in August.
On Wednesday, the EFCC formally announced the withdrawal of the money laundering charges against Gambaryan. Ekele Ihenacho, a lawyer for the EFCC, stated that the decision was taken to allow Gambaryan to seek necessary medical treatment abroad.? “We have withdrawn the money laundering charges against Tigran Gambaryan to allow him to get medical treatment outside the country,” said EFCC lawyer Ihenacho.
For Binance, the case and its eventual outcome have been a mixed bag. While the company denied all accusations, the ongoing legal challenges have put a dent in its reputation. Although the money laundering charges were dropped, the tax evasion case remains active. This suggests that Binance faces ongoing legal challenges in Nigeria and other markets as governments increase digital finance regulations.
