Nigeria Withdraws Charges Against Tigran Gambaryan Binance Executive

Sentiment Status: Neutral

On October 23, 2024, Nigeria’s EFCC officially withdrew its charges against Gambaryan, citing health concerns as one of the reasons for the decision.

Tigran Gambaryan, a top compliance executive at Binance, has been released after Nigeria’s Economic and Financial Crimes Commission (EFCC) dropped money laundering charges against him, following months of legal battles after his arrest during a business trip to Nigeria in February 2024. Gambaryan had been facing allegations tied to laundering $35.4 million, a charge both he and Binance denied.

Gambaryan’s case had been under scrutiny since his arrest in February, alongside allegations against Binance. Nigeria’s authorities accused Binance of contributing to the country’s economic challenges by enabling money laundering and tax evasion. The EFCC’s claims suggested that Binance’s platform facilitated the illegal movement of funds, destabilizing Nigeria’s economy, which was already grappling with currency depreciation.

However, the charges faced by Gambaryan have been increasingly contested. The U.S. citizen had been held in Nigeria’s Kuje Correctional Centre since April, where his health reportedly deteriorated due to a worsening back condition. His family stated that the conditions at the prison were exacerbating his herniated disc, which could result in permanent damage. Despite two denied bail applications, Gambaryan’s family persisted in seeking his release for medical treatment abroad.

On October 23, 2024, Nigeria’s EFCC officially withdrew its charges against Gambaryan, citing health concerns as one of the reasons for the decision. EFCC lawyer Ekele Ihenacho stated that the charges were dropped to allow Gambaryan to seek medical treatment outside the country. Reuters and local news outlets indicated that the withdrawal also stemmed from the realization that Gambaryan was not in a senior decision-making role at Binance.

However, the tax evasion and money laundering cases against Binance remain ongoing. Nigeria’s Federal Inland Revenue Service continues to pursue legal action against the exchange, accusing it of failing to register properly and of avoiding tax obligations in the country.

Binance’s operations in Nigeria have been heavily scrutinized, with the government accusing the exchange of playing a role in destabilizing the naira, Nigeria’s national currency. In addition, Binance faces allegations of fixing exchange rates, contributing to speculative activities that caused a sharp drop in the currency’s value.

The EFCC’s investigation into Binance is part of a wider crackdown on cryptocurrency platforms across Nigeria due to concerns over the role of digital assets in illicit financial activities. Nigeria, like several other countries, is grappling with the challenges posed by the growing popularity of cryptocurrency, especially in relation to money laundering, tax evasion, and even terrorism financing.

Despite Gambaryan’s release, Binance’s legal challenges in Nigeria are far from over. The EFCC has vowed to continue its probe into Binance’s activities, with additional charges related to tax evasion and financial misconduct still pending. The case is an example of the regulatory challenges facing around the world, including encounters with U.S. authorities and other international regulators.

Binance continues to operate in Nigeria but remains on high alert. The exchange has denied all allegations and maintains that its operations are fully compliant with Nigerian law.