Coinspeaker
Nigerian Court Refuses Bail for Binance Executive Gambaryan
In a recent development concerning the ongoing legal saga involving Binance executives in Nigeria, a federal high court in the country has refused bail for Tigran Gambaryan. Gambaryan, alongside another Binance executive, was arrested on charges related to money laundering and tax evasion.
According to local reports, during a court hearing on Friday, Justice Emeka Nwite, presiding over the case, ruled for the defendant to be retained at the Kuje Correctional Centre on the basis that he could jump bail if granted.
Background: Binance’s Legal Woes in Nigeria
Justice Nwite instead of approving the bail application has ordered an “accelerated trial” for the money laundering and tax evasion charges brought against him. Binance, and another of its executives by the country’s Economic and Financial Crimes Commission (EFCC).
On February 26, two of Binance executives Tigran Gambaryan, a citizen of the United States serving as Binance’s head of financial crime compliance, and Nadeem Anjarwalla, who is a regional manager for Africa were apprehended and detained in the country.
However, Anjarwalla escaped jail on March 22, after weeks of a bureaucratic tussle with the Nigerian EFCC who at the time failed to serve the duo with any complaints.
Gambaryan was then formally served at his first appearance in court in April. The EFCC alleged that Binance and the two executives conducted unlawful activities in the country which resulted in the laundering of more than $35 million.
At that point, the Binance executive refrained from entering a plea. The court set April 8 and 19 for his arraignment, during which he pleaded not guilty to the charges.
Bail Application and Rejection
A few weeks after the not-guilty plea, Gambaryan lawyer Mark Mordi, SAN, filed for the Binance executive to be released on bail citing procedural fairness and legal rights.
However, the court, upon reviewing the application, raised concerns about flight risk, leading to the rejection of bail. The prosecution argued that Gambaryan, like his colleague, might attempt to flee the country if granted bail.
The attorney representing the plaintiffs urged the court to dismiss the bail, citing reasons such as lack of surety. The lawyer claimed the Binance executive has no competent relation, family, or community within the Nigerian society to stand for him in court.
He also alleged that Gambaryan had on several occasions tried to apply for a new American passport while being detained in prison.
Binance’s Allegations against Nigerian Government
Amidst the legal proceedings, Binance CEO Richard Teng accused the Nigerian government of prolonging the case for the purpose of extorting money from the company. Teng said in a recent blog post that the government officials handling the case had sought the payment of $150 million in crypto to resolve the issue.
“[Our] counsel reported back that he had been presented with a demand for a significant payment in cryptocurrency to be paid in secret within 48 hours to make these issues go away and that our decision was expected by the morning,” Teng said.
However, the Nigerian government refuted the allegation, claiming it is an attempt to sway Nigerians from the heinous financial crimes leveled against it.
