Mounting Charges in Nigeria for Binance and Its Detained US Executive

Binance, the world’s largest cryptocurrency exchange, finds itself entangled in a complex legal battle and faces mounting charges in Nigeria. The country has brought more charges against the embattled company and its detained U.S. executive, Tigran Gambaryan. This further escalates tensions between the crypto giant and the Nigerian government.

What Is the Issue?

Binance’s troubles in Nigeria began in February 2024 when local regulators accused the exchange of contributing to the crash of the nation’s fiat currency, the naira. Bayo Onanuga, the presidential adviser on information and strategy, went so far as to suggest banning platforms like Binance from operating in the country.

In response to the allegations, Binance swiftly delisted all naira transactions and halted peer-to-peer naira trading. However, these measures failed to quell the concerns of Nigerian authorities.

In an attempt to find a diplomatic resolution, Binance sent two senior executives to Nigeria to engage in dialogue with local authorities. Unexpectedly, Nigerian authorities detained both Tigran Gambaryan and Nadeem Anjarwalla upon arrival.

Binance’s Cry for Justice in the Face of Mounting Charges in Nigeria

As the situation continues to escalate, and the company faces mounting charges in Nigeria, Binance has issued a statement urging Nigerian authorities to release Tigran Gambaryan. The firm argued that as a decision-maker within the company, his presence is crucial for ongoing discussions wih the government.

The court served Gambaryan with charges during his court appearance for the first time since his detention. However, he did not take a plea. The court will formally arraign him for money laundering charges on April 8 and tax charges on April 19. Nigeria’s Economic and Financial Crimes Commission (EFCC) has not charged Binance itself. However, it has argued that Gambaryan could face the charges on the exchange’s behalf.

Gambaryan’s lawyer, Chukwuka Ikuazom, objected, stating he was “neither a director, partner nor company secretary”. Additionally, he had received no written instructions from Binance authorizing him to face charges on the company’s behalf. Ikuazom also argued that according to Nigerian law, since authorities jointly charged Binance and Gambaryan, he cannot take a plea until the court serves the exchange.

Anjarwalla Flees, Adding Fuel to the Fire

While Gambaryan remains in custody, his co-accused colleague, Nadeem Anjarwalla, reportedly escaped the country in March using a fake passport. Local reports indicate Anjarwalla escaped detention on March 22 when authorities took him to a nearby mosque for prayers.

The EFCC is now preparing to charge Gambaryan and Anjarwalla with five counts of money laundering involving over $35.4 million. The co-defendants’ arraignment is scheduled for April 4, with Justice Emeka Nwite of the Federal High Court in Abuja presiding over the case. Binance, Gambaryan, and Anjarwalla are listed as the first, second, and third defendants, respectively. Notably, Anjarwalla will be arraigned in absentia due to his escape.

Amid the legal turmoil, Binance Coin (BNB), Binance’s native token, has traded sideways above the $589 level over the last 24 hours. This sideways trading pattern follows a 40% price increase that BNB experienced over the previous month.