Nigeria Asserts Due Process in Case Against Binance Executive Tigran Gambaryan

The Nigerian government has defended its prosecution of Binance and its executive, Tigran Gambaryan, for alleged illegal cryptocurrency trading. 

Amidst growing criticism from U.S. lawmakers calling for Gambaryan's release, the Nigerian Minister of Information, Mohammed Idris, affirmed that the proceedings have adhered to the country’s legal procedures.

According to Mohammed Idris, the legal actions against Binance and Gambaryan were conducted in accordance with due process at every stage. He stated that prosecutors are confident in the strength of the evidence gathered, which forms the basis of the charges. 

These charges include non-payment of value-added tax (VAT) and corporate income tax, as well as aiding customers in evading taxes through Binance's platform. As per the Nigerian Minister, Gambaryan and Binance will have the opportunity to defend themselves against these serious financial crime allegations, with the next court hearing scheduled for June 20, 2024.

U.S. Lawmakers' Intervention

On July 4, sixteen members of the U.S. House of Representatives petitioned President Joe Biden to intervene, urging the return of Gambaryan to the United States. 

They argued that his detention has been marked by excessive and harsh treatment, classifying him as a "U.S. citizen wrongfully detained by a foreign government." The lawmakers’ letter emphasized the need for the case to be transferred to the Office of the Special Presidential Envoy for Hostage Affairs.

Evidence and Due Process

Minister Idris reiterated that the prosecution is based on solid evidence and that the legal proceedings have followed due process. 

Investigations by the Nigerian authorities revealed that Binance and Gambaryan allegedly engaged in activities that violated the country’s financial laws. This includes misleading the authorities about the recency of account closures and mistaking domestic transactions for international ones.

Nigeria’s crackdown on cryptocurrency is reportedly part of a larger strategy to control financial speculation and enforce regulatory compliance. Earlier this year, the Nigerian government banned cryptocurrency trading channels, a move aimed at reducing illegal financial activities.

Initial Arrest and Detention

Gambaryan, a U.S. citizen, was arrested by the Nigerian Federal Government in February. Initially held at a guest house, formal charges were brought against him and Binance in April. The arrest occurred in the context of Nigeria's broader efforts to curb cryptocurrency trading, which the government has linked to tax evasion and other financial crimes.

The Federal Inland Revenue Service (FIRS) in Nigeria has filed a tax evasion suit against Binance, and the Economic and Financial Crimes Commission (EFCC) has filed a suit for money laundering and foreign exchange violations against the company. The EFCC case includes allegations that Binance facilitated money laundering and evasion of tax regulations through its platform.

Nigerian court also mandated that Binance provide the Nigerian government with data on Nigerian traders using its platform, reinforcing the government's commitment to regulatory oversight.