Charges Withdrawn Amid Health Concerns and Non-Senior Role at Binance
In a surprising turn of events, the Nigerian government has dropped all charges against Binance executive Tigran Gambaryan, who had been detained in Nigeria for over seven months. The announcement was made on October 23, 2024, by a lawyer representing Nigeria’s Economic and Financial Crimes Commission (EFCC) at the Federal High Court in Abuja.
According to reports from local news agency Premium Times, the EFCC lawyer stated that Gambaryan, a U.S. citizen, was merely an employee at Binance and did not hold a key role in the activities that were under scrutiny in the prosecution. This decision came just two days before a scheduled hearing on October 25, leading some to believe that the timing of the hearing was deliberate, intended to minimize public attention.
Health Issues Cited as a Factor in the Decision
While the primary reason for the withdrawal of charges was reportedly Gambaryan’s non-senior role at Binance, other factors may have influenced the decision. Sources close to the case suggested that Gambaryan’s declining health played a significant role in the EFCC’s decision to discontinue the case.
A report from Reuters indicated that the EFCC’s withdrawal of the charges was partly to allow Gambaryan to seek medical treatment abroad. According to Bloomberg Law, the court’s decision was based on Gambaryan’s deteriorating health, though the exact nature of his condition was not disclosed publicly.
Gambaryan’s lawyer, Mark Mordi, had previously argued that his client’s health had significantly worsened during his detention in Kuje prison, Abuja. However, the EFCC had contested this claim, insisting that Gambaryan’s health issues were being exaggerated. Mordi had also pointed out that Nigeria’s healthcare system was ill-equipped to address his client’s medical needs.
Bail Denials and Prolonged Detention
Gambaryan’s legal troubles began in February 2024 when he was detained by the Nigerian authorities after traveling to the country to address a legal dispute between Binance and the Nigerian government over allegations of unlawful operations. Although Binance had officially exited the Nigerian market in March 2024, Gambaryan remained in custody as the Nigerian government pursued its case.
Despite the worsening health conditions of the former U.S. tax agent, Gambaryan was denied bail twice. The first denial came in May 2024, when Judge Emeka Nwite ruled that Gambaryan posed a flight risk. His second bail application in October 2024 was also rejected, with the judge asserting that Gambaryan’s health condition did not justify his release from prison.
Ongoing Legal Issues for Binance in Nigeria
While the charges against Gambaryan have been dropped, the Nigerian government is continuing its legal battle against Binance. According to multiple sources, Nigeria’s money laundering case against Binance is still active, and the exchange faces several tax-related charges.
Reuters reported that the Nigerian government has not backed down from its case related to Binance’s alleged tax evasion. The charges include accusations that Binance failed to register with the Federal Inland Revenue Service (FIRS), along with other allegations of tax avoidance. Despite Binance’s denials, the ongoing legal proceedings highlight the tensions between the Nigerian government and the global crypto exchange.
What’s Next for Binance in Nigeria?
The future of Binance’s operations in Nigeria remains uncertain. While the withdrawal of charges against Gambaryan removes a significant legal hurdle for the company, the exchange still faces substantial regulatory challenges in the country. With money laundering and tax evasion charges still on the table, Binance’s legal team will likely continue to defend the company in the Nigerian courts.
This development also signals a shift in the relationship between Binance and Nigerian authorities, with both sides seemingly at an impasse over issues of regulation and compliance. As the Nigerian government continues to ramp up its regulatory scrutiny of the crypto industry, the outcome of Binance’s ongoing legal battles could have broader implications for other exchanges operating in the country.
For now, Binance is left to navigate its remaining legal challenges, while the crypto community watches closely to see how this case unfolds.
