Binance expresses disappointment as Nigerian court denies executive bail in money laundering trial

World’s largest crypto exchange, Binance has expressed disappointment over a Nigerian court ruling that its executive detained on charges of tax evasion and money laundering, Tigran Gambaryan can face trial on behalf of the company. According to a statement by a company spokesperson, Tigran continues to be detained although he has no decision-making power in the company.

Earlier today, presiding judge, Emeka Nwite denied Gambaryan (who is 40 today) bail. The judge claimed that the Binance Executive was likely to abscond.

According to the judge, “the fact that the passport of the defendant is with the complainant does not guarantee that he will remain in Nigeria because the defendant is not only an American citizen but also an Armenian citizen by birth.”

Gambaryan has been held in Nigeria for more than two months. During his last appearance in court, he pleaded not guilty to the charges brought against him.

According to a statement shared by the company’s spokesperson with Technext, the just course of action is to free Tigran while the crypto company discusses with the government:

“We are deeply disappointed that Tigran Gambaryan, who has no decision-making power in the company, continues to be detained. Tigran has been dedicated to public service and fighting crime for most of his life. These charges against him are completely meritless. He should be freed while discussions continue between Binance and Nigerian government officials”, it said.

This adds a thread to the list of legal woes that Binance has faced in the past year across the globe. Nigeria has particularly indicated its intentions to control and restrict virtual currency operations in the country.

Read more here: “Nigeria must release Tigran Gambaryan, if we are to move forward”, Binance CEO, Richard Teng says

Recall that the Nigerian Central Bank Governor, Yemi Cardoso, had said there were concerns that currency speculation was rife on cryptocurrency platforms and alleged that Binance helped to move an estimated $26bn in untraceable funds.

Just yesterday, Nigeria anti-graft agency (EFCC) chief, Olanipekun Olukoyede, told an audience at a public function in Abuja that some of those involved in cryptocurrency trading in Nigeria were unwitting conduits for terrorism financiers.

“They are potential platforms to fund terrorism … some of our discoveries during the investigation of some of these platforms were mind-boggling,” he said.

A recap of Binance’s troubles in Nigeria

In February 2024, two Binance executives, Tigran Gambaryan, a U.S. citizen and Head of Financial Crime Compliance, and Nadeem Anjarwalla, a British Kenyan and Regional Manager for Africa were arrested and detained by Nigerian authorities. They were subsequently charged to court on four counts of tax evasion and money laundering.

 In a separate suit, Nigeria’s tax authority alleged that the company had not registered for remittance purposes in Nigeria and was therefore guilty of tax evasion. The government is also seeking data on prominent Binance users in the country.

However, in March, one of the executives, Nadeem Anjarwalla, escaped EFCC custody and fled the country using a Middle East airliner. Later in the same month, there were reports that he was rearrested by Interpol, a report which the international police failed to substantiate. Anjarwalla, a British-Kenyan national, has been on the run since March after escaping from custody in Abuja. Some reports claim he was found in Kenya and is on the verge of being extradited to Nigeria

Read more: Detained Binance executive Nadeem Anjarwalla allegedly escapes from custody in Nigeria

The Binance CEO, Richard Teng claimed about a month ago that the company was working closely with the Nigerian government to resolve the situation. But in an apparent change of stance, the CEO insinuated in a blog post a week ago that some representatives of the Nigerian authorities were demanding a bribe of $150m in crypto funds from its detained executives to make the money laundering trial initiated against them go away.

In reaction, the Nigerian government, through a senate spokesperson claimed that the allegation was “an attempt to distract and draw attention away from the serious allegations of criminality against it” and demanded an apology from the crypto company. He also noted that Binance had used “sophisticated criminality” to help its employees escape.