Tigran Gambaryan, an executive of Binance, the world’s foremost cryptocurrency exchange, appeared before an Abuja court on Thursday, facing allegations of tax evasion and money laundering. This marks a pivotal moment in the scrutiny of cryptocurrency operations within the African nation, spotlighting the intersection of digital finance and regulatory compliance.
Binance, recognized globally as a leading platform in the cryptocurrency market, along with its two executives, Tigran Gambaryan, an American serving as Binance’s head of financial crime compliance, and Nadeem Anjarwalla, a British-Kenyan and the regional manager for Africa, are embroiled in a legal battle involving accusations of evading taxes and laundering an amount exceeding $35 million.
The case unfolded when Gambaryan and Anjarwalla were detained on February 26, upon their arrival in Nigeria, as part of an ongoing criminal probe into Binance’s Nigerian operations. Anjarwalla subsequently escaped custody and left the country, leaving Gambaryan to face the judicial process. During his court appearance, Gambaryan was formally presented with the charges, although he did not enter a plea. His arraignment for both sets of charges is scheduled for April 8 and 19, during which his plea will be recorded.
While Binance has not been directly charged by Nigeria’s Economic and Financial Crimes Commission (EFCC), the commission contends that Gambaryan could represent the exchange in facing these charges. However, Gambaryan’s legal counsel, Chukwuka Ikuazom, contested this assertion, arguing that Gambaryan lacks the formal authority within Binance to assume legal responsibility on behalf of the company. Ikuazom further highlighted a legal technicality that precludes Gambaryan from pleading to the charges before Binance, as the primary defendant, is officially served.
Binance, which was conspicuously absent from the court proceedings and has yet to issue a public statement on the matter, had previously expressed its position through a statement on Wednesday. The company emphasized its hope that Gambaryan, who they claim lacks significant decision-making power, would not be held accountable amidst ongoing dialogues with the Nigerian authorities.
Amidst these legal proceedings, Gambaryan has sought relief through the Nigerian judicial system, requesting his release from custody. This legal drama underscores the broader tensions between cryptocurrency entities and national governments over regulatory and compliance issues. Nigeria, in particular, has pointed fingers at Binance for contributing to its financial instability, as cryptocurrencies have become popular means for trading the Nigerian naira amidst persistent dollar shortages.
