Binance: FG drops money laundering charges against Gambaryan 

The Federal Government of Nigeria has formally withdrawn all charges against Tigran Gambaryan, a senior executive at Binance Holdings.

The withdrawal marks the end of his prolonged detention since April pending trial for alleged money laundering offenses.

On Wednesday morning, counsel for the Economic and Financial Crimes Commission (EFCC), the prosecuting agency, formally announced the withdrawal of charges against Gambaryan at the Federal High Court in Abuja.

The hearing, occurring two days ahead of the October 25 return date set by the trial judge last Friday, raises questions about the motivations behind scheduling it at such short notice.

The counsel announced the dismissal of charges against Gambaryan, clarifying that he was prosecuted solely in relation to his corporate duties.

Mr. Mark Mordi, a Senior Advocate of Nigeria (SAN), representing Gambaryan, aligned with the prosecution’s position, emphasizing that his client was not a participant in the company’s strategic financial deliberations.

According to the report, Wednesday’s hearing marked the culmination of months of discreet diplomatic efforts between Nigerian and US government officials, aimed at securing the release of Gambaryan.

It says, “despite being denied bail twice due to flight risk concerns, Gambaryan’s situation saw a significant development thanks to the behind-the-scenes lobbying.”

“The weeks preceding Wednesday’s hearing saw concerted efforts by some U.S. lawmakers to secure Gambaryan’s release, including written appeals to key Nigerian and American officials.”

Earlier, on October 11, Justice Emeka Nwite denied Gambaryan’s second bail application, citing insufficient grounds of ill health to warrant release from detention.

The judge deemed Gambaryan’s request an abuse of court process since he was still appealing the earlier bail ruling at the Court of Appeal.

Furthermore, Justice Nwite noted that the Nigerian Correctional Service (NCoS) was capable of treating Tigran’s health issues, contrary to claims that he required medical care outside the facility.

However, the judge ordered the NCoS to refer Gambaryan to a standard hospital in Abuja for two to three days.

Following the ruling, the judge adjourned the trial to October 18 for further proceedings but Gambaryan was absent.

Subsequently, the judge adjourned the trial to October 25, but this new schedule appears to have been superseded by the events unfolding from Wednesday’s private hearing.

The case has reached an abrupt conclusion following Wednesday’s hearing.

Earlier

The Binance executive, has been in custody at the Kuje Correctional Centre in Abuja since his arraignment in April 2024.

He was charged by the Economic and Financial Crime Commission (EFCC) for money laundering.

Tigran was transferred to the correctional center after pleading not guilty to money laundering charges and applying for bail, which was later denied.

The development came after Gambaryan and his colleague, Nadeem Anjarwalla, were detained in an Abuja guest house, from which Anjarwalla escaped in March 2024.

Before the dismissal of the charges on Wednesday morning, Gambaryan faced trial alongside Binance, a digital currency exchange, on five counts of money laundering and unauthorized currency transactions totaling $34.4 million.

Concurrently, Binance is still facing allegations of tax evasion in a separate legal proceeding before a different judge of the Federal High Court in Abuja as no news of dismissal is out yet.

Know more about Binance

Binance is a leading cryptocurrency exchange platform that provides a range of services.

It was founded in 2017 by Changpeng Zhao (CZ) and Yi He. It has its headquarter in Malta (previously Hong Kong).

The exchange platform has over 2,000 employees globally and has estimated $10 billion revenue in 2022.

Key Features

Binance allows users to buy, sell, and trade various cryptocurrencies and also exchange of spot, margin, futures, and options trading.

Also, it secures storage for cryptocurrencies and pays for merchant transactions.

Besides, it provides cloud mining services and NFT for digital art and collectibles.

Regulatory Environment

Binance is licensed in Malta, Singapore, and other jurisdictions. It is registered with the Financial Conduct Authority (FCA) in the UK.

It faces regulatory scrutiny in various countries, including the US (SEC, CFTC), UK (FCA), and Japan (FSA).

Controversies and Challenges

The cryptocurrency platform faced hacking incidents in 2019 and 2022 and also regulatory compliance issues.

Innovation and Partnerships

Binance innovations include incubator and venture arm and also adopted crypto education and community engagement.

Also, it is in partnership with blockchain projects, fintech companies, and institutions.

Security Measures

For security, Binance provides two-factor authentication, cold storage for assets, regular security audits and bug bounty program.

User Base

It has over 100 million registered users and has over 180 countries in its global presence.

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