Nigerian Court Denies Bail to Binance Exec Tigran Gambaryan on Money Laundering Charges

A Federal High Court in Abuja has denied bail to Tigran Gambaryan, a Binance executive facing charges of money laundering and tax violations in Nigeria. 

The EFCC’s money laundering trial commenced on Friday with Abdulkadir Abbas from the Nigerian SEC as the first prosecution witness. Gambaryan's lawyers requested a stand-down after examining their first witness so they could obtain certified copies of certain documents for cross-examination. 

However, Justice Emeka Nwite ruled against granting Gambaryan bail, citing the executive’s potential flight risk and the severity of the allegations. 

During the hearing, the judge also emphasized that the nature of the offenses necessitated a cautious approach to bail considerations. The trial was adjourned until noon on May 23.

Charges and Arrest

Gambaryan, head of financial crime compliance at Binance, was arrested in February shortly after arriving in Nigeria. He intended to discuss the crypto exchange’s operations with government officials. 

The arrest came after the federal government banned cryptocurrency channels to curb currency speculation. The court mandated that Binance provide the Nigerian government with data and details of Nigerian traders using its platform.

The Nigerian Economic and Financial Crimes Commission (EFCC) is prosecuting a $35 million money laundering case, while the Federal Inland Revenue Service is handling tax violation charges against Binance.

Prosecution's Arguments

The prosecution, led by Ekele Iheanacho, objected to the bail application, highlighting that Gambaryan recently attempted to obtain a new passport under questionable circumstances.

Iheanacho argued that Gambaryan has no significant ties to any community in Nigeria. He claimed that if granted bail, Gambaryan is likely to abscond like his colleague, Anjarwalla, who escaped Nigerian custody on March 22. 

Gambaryan's Defense

Gambaryan pleaded not guilty to the charges, which were formally presented on April 8. 

The Binance exec. has also sued the Nigerian government for violating his fundamental human rights. He claims that his detention and the confiscation of his passport violate the country’s constitution, which guarantees an individual’s right to personal liberty. 

The Federal High Court in Abuja had previously postponed the bail application hearing. Gambaryan is currently in custody at the Kuje Correctional Center.

Binance CEO Richard Teng has also voiced his concerns, advocating for Gambaryan’s release and criticizing the circumstances of his detention.

 “To invite a company’s mid-level employees for collaborative policy meetings, only to detain them, sets a dangerous precedent for all companies worldwide,” Teng highlighted in a recent blog post.