Tigran Gambaryan, a Binance executive, is facing four counts of money laundering charges in Nigeria but has maintained his innocence during a courtroom hearing where he pleaded not guilty. Gambaryan’s defense argued that he should not be held responsible for Binance’s activities in Nigeria as he does not have decision-making authority in the company’s business operations. However, the judge rejected this argument, stating that local laws allow for Gambaryan to be held accountable for Binance’s actions. Gambaryan’s case has been adjourned several times, with the latest being for bail consideration on April 18 and substantive charges on May 2. He has been remanded at Kuje prison in Abuja until the conclusion of the case.
Gambaryan’s colleague, Nadeem Anjarwalla, who is Binance’s Africa Regional Manager, managed to escape and flee Nigeria in March while Gambaryan remains in custody. The charges against Gambaryan and Anjarwalla are part of a broader investigation into Binance’s activities in Nigeria, with local authorities alleging that Binance manipulated and devalued the Nigerian naira and engaging in tax fraud. Binance had to discontinue all services involving Nigerian local fiat currency, the Nigerian naira, after facing regulatory scrutiny from the Nigerian government, which imposed a $10 billion fine on the platform in an effort to stabilize the nation’s local currency. Binance’s regulatory troubles have been increasing globally, with previous charges from US regulatory bodies.
In addition to the ongoing legal issues in Nigeria, Binance has faced regulatory scrutiny worldwide, with charges filed by the Commodity Futures Trading Commission (CFTC) last year for allegedly operating an illegal digital asset derivatives exchange and evading federal laws. The US Securities and Exchange Commission also charged Binance Holdings LTD and ex-CEO Changpeng Zhao (CZ) for operating unregistered exchanges, broker exchanges, and the unregistered offer and sale of securities. Binance and CZ pleaded guilty to various federal charges including anti-money laundering violations and unlicensed money transmission in November 2023. CZ later resigned as the CEO of Binance as part of the agreement with the DOJ. Recently, investors seeking to sue the exchange, its former CEO, and other executives were given a chance to pursue their case.
Gambaryan emphasized during his courtroom hearing that he should not be held accountable for Binance’s activities in Nigeria as he does not have decision-making authority within the company. However, the judge ruled that Gambaryan acted as Binance’s representative in Nigeria during previous trips, thus holding him responsible for the company’s actions. Gambaryan’s case has been adjourned numerous times, with bail consideration and substantive charges hearings scheduled for April 18 and May 2, respectively. Gambaryan’s colleague, Anjarwalla, managed to evade capture and flee Nigeria in March, while Gambaryan remains in custody at Kuje prison in Abuja.
Binance has faced regulatory challenges not only in Nigeria but globally, with charges filed against the company by US regulatory bodies for various violations including anti-money laundering and unlicensed money transmission. The company has been forced to discontinue services involving Nigerian local fiat currency following regulatory scrutiny, including a substantial fine imposed by the Nigerian government. Binance’s former CEO, CZ, resigned from his position as part of an agreement with the DOJ after pleading guilty to federal charges. Amidst these legal issues, investors are now being given a fresh chance to pursue their case against Binance and its executives.
