Federal High Court Remands Binance Ltd Representative in Nigerian Correctional Service
Federal High Court Remands Binance Executive in Nigerian Correctional Service
In a dramatic turn of events at the Federal High Court in Abuja, Tigran Gambaryan, a representative of Binance Ltd, has been remanded in the Nigerian Correctional Service pending the determination of his bail application. The court overruled Gambaryan’s claim that he was not an agent of Binance Ltd, ordering him to take his plea on behalf of the company before the trial commenced.
The Economic and Financial Crimes Commission (EFCC) had planned to arraign Binance Ltd, Gambaryan, and Nadeem Anjarwalla on charges of money laundering and foreign exchange contravention amounting to $35,400,000. The EFCC alleged that the defendants concealed the origin of the funds generated as revenue by Binance in Nigeria, knowing that the funds were proceeds of unlawful activity.
Last week, Gambaryan’s legal team objected to his arraignment, arguing that he was not authorized to accept service on behalf of Binance as he is not an agent of the company. However, the EFCC maintained that Gambaryan was the cryptocurrency platform’s agent in Nigeria.
In a ruling on Monday, Justice Emeka Nwite held that Gambaryan qualified as an agent of Binance and ordered the court to proceed with the arraignment of the defendants. Gambaryan pleaded not guilty to the charges and his bail application is set to be heard on April 18, 2024, with the trial scheduled for May 2, 2024.
The case against Binance and its executives stems from two separate suits filed by the FIRS and EFCC, with allegations ranging from tax evasion to money laundering. The executives have also filed a fundamental rights case against Nigerian government agencies, citing a violation of their constitutional rights.
The detention of the Binance executives comes amidst a crackdown on cryptocurrency channels in Nigeria, following a ban on currency speculation. The Naira has experienced significant devaluation, losing 70% of its value against the dollar, further exacerbated by a shortage of dollars locally. Nadeem Anjarwalla, the regional manager for Africa, has reportedly fled the country following the legal proceedings.
