2024-10-23
In a surprising turn of events, the
Nigerian government has officially dropped all money laundering charges against
Tigran Gambaryan, an executive of Binance Holdings.
Gambaryan, who has been in detention at
the Kuje Correctional Centre in Abuja since February, faced charges of money
laundering and currency speculation.
On October 23, 2024, the Federal High
Court in Abuja ordered his immediate release, allowing him to seek medical
treatment abroad.
Nigeria's Economic and Financial Crimes
Commission (EFCC) withdrew the case against Gambaryan, a U.S. citizen and head
of financial crime compliance at Binance, in open court in the capital city,
Abuja
However, while the charges against
Gambaryan have been dropped, the cryptocurrency firm Binance remains the sole
defendant in the case, facing allegations of money laundering amounting to
$34.4 million. This case has far-reaching implications, involving complex legal
proceedings, diplomatic pressure, and health concerns.
Background of the Case
Tigran Gambaryan, a U.S. citizen and
head of financial crime compliance at Binance, was arrested and detained in
Nigeria earlier in 2024.
Alongside Binance, Gambaryan was accused of being involved in illegal currency speculation and money laundering schemes that negatively impacted Nigeria’s foreign exchange market.
The company allegedly laundered over $34 million through its cryptocurrency platform. Despite denying the charges, Gambaryan was incarcerated without bail, as the court deemed him a flight risk due to a prior incident where another Binance colleague, Nadeem Anjarwalla, had escaped pre-trial detention in March.
Binance itself is also embroiled in
other legal issues, including ongoing tax evasion charges in Nigeria.
Nevertheless, Gambaryan’s case, specifically, gained attention due to his
deteriorating health condition, which played a key role in the government’s
decision to drop charges against him.
Reasons for Dropping Charges
On the day of Gambaryan’s release, a
representative of the Economic and Financial Crimes Commission (EFCC), R.U.
Adaba, addressed the court, citing several reasons for discontinuing the
prosecution of the Binance executive.
Diplomatic interventions between
Nigerian and U.S. officials had played a significant role behind the scenes.
Furthermore, it was acknowledged that Gambaryan was not a central figure in
Binance’s broader financial activities, but rather an employee of the firm.
One of the primary reasons for dropping
the charges was Gambaryan’s worsening health. While in detention, Gambaryan’s
medical condition had significantly deteriorated, to the point where he
required the use of a wheelchair or crutches.
Doctors had recommended surgery, and
his condition raised concerns that continuing the trial would be detrimental to
his recovery. The government, despite efforts to provide adequate care through
the National Security Adviser (NSA), ultimately determined that allowing him to
seek medical treatment outside Nigeria was in his best interest.
Court Proceedings and Ruling
At the court session on October 23, 2024, Adaba explained that while the charges against Gambaryan were being dropped, this decision did not equate to an acquittal. She emphasized that the case had not been heard on its merits, and the dismissal was primarily due to health concerns, not insufficient evidence.
Despite Gambaryan’s defense team,
led by Senior Advocate of Nigeria (SAN) Mark Mordi, pushing for full acquittal,
the court did not grant this request. Instead, the judge, Emeka Nwite, ordered
Gambaryan’s immediate discharge but refrained from completely clearing him of
the charges.
The case against Binance itself,
however, remains active. The trial will continue in November, with the
cryptocurrency giant standing as the sole defendant. The court’s decision to
drop the charges against Gambaryan ahead of the scheduled October 25 hearing
appears to have been carefully timed to avoid attracting widespread attention.
Diplomatic Pressure and International
Influence
Diplomatic pressure from the U.S. played a crucial role in Gambaryan’s release. Leading up to the trial, there were intense discussions between officials from both Nigeria and the United States. Some U.S. lawmakers had also lobbied for Gambaryan’s release, pointing to his deteriorating health and humanitarian concerns.
Gambaryan’s wife, Yuki, had been vocal
about her husband’s poor health, warning that his condition might result in
permanent damage.
Conclusion
The release of Tigran Gambaryan from Nigerian custody marks an important development in the ongoing legal battle involving Binance, one of the world’s largest cryptocurrency exchanges. While Gambaryan’s personal ordeal may be coming to an end, the case against Binance is far from over. The company continues to face serious allegations of money laundering and currency manipulation that could have lasting implications for its operations in Nigeria.
