Tigran Gambaryan, a Binance executive who has been held in custody in Nigeria since February, has reportedly been denied bail in a money laundering trial by a Nigerian court. Judge Emeka Nwite denied the bail application, expressing concerns that Gambaryan may flee if released. Gambaryan, along with Binance Holdings and another senior executive Nadeem Anjarwalla, who is currently on the run, are facing charges related to money laundering and terrorism financing brought by the Economic and Financial Crimes Commission (EFCC).
The prosecution, led by Ekele Iheanacho, strongly opposed the bail application, citing Gambaryan’s recent attempt to obtain a new passport under suspicious circumstances and his lack of significant ties to any Nigerian community. Iheanacho argued that granting bail to Gambaryan would likely result in him absconding, similar to his colleague Anjarwalla, who managed to escape Nigerian custody on March 22.
Anjarwalla and Gambaryan were arrested upon their arrival in Nigeria on February 26. Their arrest followed the government’s ban on cryptocurrency channels as part of its efforts to combat currency speculation. The court also ordered Binance to provide the Nigerian government with access to data and information regarding Nigerian traders on its platform.
However, Gambaryan has also filed a lawsuit against the Nigerian government, claiming a violation of his fundamental human rights. He argues that his detention and passport confiscation go against the country’s constitution, which guarantees personal liberty.
The bail application hearing for Gambaryan, who is currently held at the Kuje correctional center, was initially postponed by the Federal High Court in Abuja, Nigeria. He was expected to appear in court on April 19, with the question of bail to be addressed on April 22. Gambaryan has pleaded not guilty to tax evasion and money laundering charges brought by the EFCC.
In response to the situation, Binance announced on March 5 that it would cease all Nigerian naira transactions, effectively exiting the market. The platform also delisted all naira trading pairs on its peer-to-peer trading platform in late February.
In a separate case in the United States, former Binance CEO Changpeng “CZ” Zhao was sentenced to four months in prison by a federal judge for violating US money laundering laws.
Related: Nigeria’s Binance bribery allegations pose a risk to foreign investment.
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