The trial of Binance and its executive, Tigran Gambaryan, for engaging in illegal cryptocurrency trading in Nigeria is progressing in accordance with the country’s legal procedures, as stated by the Nigerian Minister of Information, Mohammed Idris.
Idris emphasized that the legal process has been meticulously followed at every step, with prosecutors confident in the strength of their case based on the evidence collected. Binance will have the opportunity to present its defense against the serious financial crime charges in court during the next hearing scheduled for June 20, 2024.
In a separate development, a group of 12 United States politicians recently appealed to President Joe Biden to intervene through the U.S. hostage affairs unit to secure the release of Gambaryan. They expressed concern that the charges against him, including money laundering and tax evasion, were unfounded and suggested that they might be part of a ploy by Nigerian authorities to pressure Binance.
Despite these claims, the Minister assured that Binance has been provided with the necessary consular assistance from the U.S. and has been treated in accordance with standard diplomatic practices and the rule of law. The decision to deny bail was based on concerns about the defendant’s potential flight risk, particularly considering that a co-defendant has already fled the country and is now the subject of an Interpol arrest warrant.
Binance is currently facing legal challenges in Nigeria, with two separate lawsuits filed by the Federal Inland Revenue Service and the Economic and Financial Crimes Commission. The former case revolves around allegations of tax evasion, while the latter pertains to money laundering and violations related to foreign exchange.
In February, Gambaryan, a U.S. citizen, along with Nadeem Anjarwalla, was arrested by the Nigerian government on suspicion of money laundering and tax evasion. While Anjarwalla managed to evade custody and escape to Kenya, Gambaryan remains in detention at the Kuje correctional center in Abuja, Nigeria.
These arrests came shortly after the Nigerian government implemented a ban on cryptocurrency transactions as part of an effort to combat currency speculation. The court has mandated that Binance provide the Nigerian government with access to data and information regarding Nigerian traders using its platform.
In a related context, the ongoing enforcement actions against cryptocurrency activities have raised questions about the extent to which regulatory measures should be applied in the crypto space.