Nigerian court releases Binance crypto official, following U.S. pressure

Nigeria has dropped a money-laundering probe against a senior Binance official, to allow him to receive medical care abroad. 

The African nation’s anti-corruption agency was investigating Tigran Gambaryan, 40, and the prominent cryptocurrency exchange for allegedly laundering up to $35.4 million, which they have denied. 

As reported by the BBC, the accusation leveled at Binance was that it fixed exchange rates and speculated on currencies. This culminated in the freefall of the Naira, the local currency in Nigeria, with lasting implications for its economy. 

Binance has recently experienced a downturn due to regulatory pressure, with competitors making up ground.

US citizen Gambaryan was detained during a visit in February, with financial crime compliance falling under his remit at Binance. His colleague, Nadeem Anjarwalla, a Kenya-based regional manager, was also arrested but later fled the jurisdiction within weeks of being placed under house arrest.

The charges against the company included claims of tax evasion, as part of increasing scrutiny of the wider crypto industry over fears that firms were being used for money laundering and terror financing.

Nigeria dropped a money-laundering case against a cryptocurrency executive so that he can get medical treatment abroad.

US citizen Tigran Gambaryan was arrested in Nigeria in February and later charged with his company Binance with laundering $35.4m. https://t.co/4v6crWvppU

— BBC News Africa (@BBCAfrica) October 23, 2024

Gambaryan’s release comes after the United States government applied pressure on their Nigerian counterparts, with Secretary of State Antony J. Blinken raising the issue.  

His family had campaigned for him to be freed, citing concerns over his health with claims that conditions at the Kuje Correctional Center in Abuja were adding to his suffering, from malaria and a back problem.

“The herniated disc in his back has worsened to the point where it might leave permanent damage and affect his ability to walk,” said Gambaryan’s wife Yuki in August.

A High Court judge denied him bail on two previous occasions, stating he was a potential flight risk following the actions of Binance’s Anjarwalla, but his trial was adjourned last Friday due to illness, then a state agency intervened.

The Economic and Financial Crimes Commission (EFCC) announced in an Abuja court on Wednesday (Oct 24) that it was dropping the probe against him.

“We have withdrawn the money laundering charges against Tigran Gambaryan to allow him to get medical treatment outside the country,” said EFCC lawyer Ekele Ihenacho.

Despite his release, the tax evasion charges on Binance will still be pursued by the Federal Inland Revenue Service.

Image credit: Via Ideogram

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