Binance executive Tigran Gambaryan, detained by the Nigerian authorities in February, was remanded yesterday (Monday) after a “not guilty” plea, several local media outlets reported. He has been sent to Kuje Correctional Center pending the determination of his bail application.
The Executive Is Awaiting Bail
The Nigerian court’s judge will rule on Gambaryan’s bail application on April 18 and will commence the trial on May 2.
Gambaryan, another fellow Binance executive, Nadeem Anjarwalla, and the exchange itself face five counts of money laundering and tax evasion charges. The country’s Federal Inland Revenue Services accused the three of concealing the source of the $35.4 million it generated from the country.
They were also blamed for helping to process billions in illegal funds and manipulating the exchange rate of the Nigerian naira.
Earlier, Binance clarified that Gambaryan, the head of the exchange’s financial crime compliance, has no decision-making power and should not be held accountable in the Nigerian lawsuit. However, the Nigerian court allowed the suit against him, saying that his service on behalf of the company was “proper.”
“The second defendant is the duly appointed representative of Binance. The second defendant is bound to receive a summons on behalf of Binance,” the judge in the Nigerian court said. “The service of the second defendant on behalf of the first defendant is proper. The court should proceed with the arraignment of the defendants.”
Nigeria’s Action against Binance
Nigerian authorities detained the two Binance executives in late February following a warning against the exchange. A report by the BBC revealed that the Nigerian authority is demanding $10 billion from the cryptocurrency exchange as retribution, but the country’s officials said that amount is only under consideration, and no such demands were made.
Anjarwalla, Binance’s African Regional Manager, escaped detention last month and flew out of the country using a Middle East airliner. He is a citizen of the United Kingdom and Kenya and is suspected of having used his Kenyan passport to flee the country.
“The proper place to be post-arraignment is a correctional center,” the legal representative of the agency that brought the suit against Binance and its executives said, objecting to the bail request. “We have Nigerians convicted in the US. His detention was proper. They raised a Preliminary Objection, which the magistrate court dismissed.”
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