Tigran Gambaryan has been detained in Nigeria since March, after coming to respond to concerns over alleged manipulation of the naira by Binance.
In a recent development, the case of a Binance executive detained in Nigeria on tax evasion charges was adjourned until April 19, following his first court appearance.
Tigran Gambaryan, head of financial crimes compliance at Binance, was charged alongside the company with several charges, including non-payment of value-added tax and corporate income tax and alleged complicity in helping clients evade taxes through from the Binance platform.
Gambaryan arrived in Nigeria with Binance executive Nadeem Anjarwalla in February following allegations that the exchange manipulated the country’s fiat currency, the naira.
Binance announced on March 5 its intention to end all naira transactions, leaving the market for Nigerian users. Gambaryan and Anjarwalla, who were in Nigeria at the time of the announcement, were detained by authorities. Reports suggest they face charges including tax evasion and money laundering.
Nigerian authorities have moved forward with charges against the exchange — reportedly postponed until April 8 — and Gambaryan, but Anjarwalla reportedly escaped custody on March 22 and was able to board a flight out of the capital, Abuja.
Delay in Binance’s Executive Case
According to a Bloomberg report, during the proceedings, Judge Emeka Nwite decided to adjourn Gambaryan’s case for a longer period after learning that she was hearing the charges for the first time on Thursday. The prosecution explained that they could not pursue the charges earlier, claiming that Gambaryan was in the custody of a different federal agency, the Economic and Financial Crimes Commission (EFCC). The charges were eventually handed over to the court.
Meanwhile, another Binance executive, Nadeem Anjarwalla, who had British and Kenyan citizenship, fled Nigeria last month after being detained along with Gambaryan. The two executives had traveled to Nigeria in late February at the invitation of authorities to meet with officials after the government restricted access to cryptocurrency channels as part of a broader effort to combat currency speculation.
High Risk Court Hearing
The popularity of cryptocurrencies among Nigerians has increased due to the devaluation of the naira, prompting the government to crack down on platforms offering digital tokens. In February, Central Bank Governor Olayemi Cardoso alleged that Binance had facilitated $26 billion in untraceable transactions shortly before the arrest of the two Binance executives. In response to the case, Binance stated on Wednesday, before the hearing, that Gambaryan had no decision-making power within the company and urged that he not be held liable.
At the same time, talks were ongoing between Binance and Nigerian government officials. During the court hearing, arguments revolved around whether Binance could be charged through its employee, Gambaryan. Mark Mordi, Gambaryan’s lawyer, argued that due process had not been followed and highlighted his client’s explicit statement that he was not authorized to receive charges on behalf of the company.
Gambaryan’s legal defense further stated that “The world is watching us, let’s not treat this matter as a trivial matter.” As the case unfolds, it highlights the increased scrutiny that cryptocurrency exchanges have faced in recent months, hence the need for clear regulatory frameworks and compliance with due process to address concerns related to allegations of tax evasion and financial crimes.
Gambaryan remains in the custody of the Nigerian Economic and Financial Crimes Commission, pending further developments in the case and its outcome, as imprisonment could be a possible outcome.
Currently the exchange’s native token, BNB, is currently trading at $593, showing a notable 6.5% uptrend in the last 24 hours.
By Audy Castaneda
