The detained Binance executive, Tigran Gambaryan, has pleaded not guilty to four counts of money laundering charges in Nigeria. He asserted his innocence during a courtroom hearing on April 8, stating that he should not be held accountable for Binance’s activities in Nigeria as he does not have decision-making authority in the company’s operations. However, the judge rejected Gambaryan’s defense argument and ruled that he acted as Binance’s representative during previous trips to Nigeria, citing local laws. The case has been adjourned until April 19, with the bail consideration hearing further postponed to April 18. Hearings on the substantive charges are set to begin on May 2, and Gambaryan has been remanded at Kuje prison in Abuja until the conclusion of the case.
Binance’s Africa Regional Manager, Nadeem Anjarwalla, managed to escape and flee Nigeria in March, while Gambaryan remains in custody. The charges brought by the Economic and Financial Crimes Commission (EFCC) against the two executives are part of an investigation into Binance’s activities in Nigeria. Local authorities allege that Binance manipulated and devalued the Nigerian naira and also face accusations of tax fraud. Binance had to discontinue all services involving the Nigerian naira after regulatory scrutiny, with the Nigerian government imposing a $10 billion fine on the platform to stabilize the local currency. Binance has faced increasing regulatory troubles globally, with charges filed by the Commodity Futures Trading Commission (CFTC) and the US Securities and Exchange Commission for operating illegal digital asset exchanges and securities violations.
Last year, the CFTC charged Binance for operating an illegal digital asset derivatives exchange and evading federal laws, while the SEC charged the company and its ex-CEO for operating unregistered exchanges and the unlicensed offer and sale of securities. Binance and Changpeng Zhao (CZ) pleaded guilty to federal charges, including anti-money laundering violations and unlicensed money transmission, with CZ resigning as CEO as part of the agreement with the Department of Justice. Investors seeking to sue the exchange and its former CEO were given a fresh chance to pursue their case last month. Binance has been facing regulatory scrutiny globally, with increased oversight and legal challenges impacting its operations.
In Nigeria, Gambaryan pleaded not guilty to money laundering charges, emphasizing that he should not be held responsible for Binance’s activities in the country. However, the judge ruled that he acted as Binance’s representative during his visits to Nigeria, allowing the case to proceed. Gambaryan’s bail consideration hearing has been further adjourned, with substantive charges hearings scheduled to begin on May 2. He remains remanded at Kuje prison in Abuja until the conclusion of the case. Meanwhile, Anjarwalla managed to escape and flee Nigeria in March, while Binance faces allegations of manipulating the Nigerian naira and tax fraud.
The charges brought against Gambaryan and Anjarwalla in Nigeria are part of a broader investigation into Binance’s activities in the country. Binance had to discontinue services involving the Nigerian naira after regulatory scrutiny and was fined $10 billion by the Nigerian government. The company has also faced regulatory challenges globally, with charges filed by the CFTC and the SEC for illegal operations and securities violations. Binance and CZ pleaded guilty to federal charges and faced increased oversight and legal challenges as a result. Investors have been given a fresh chance to pursue their case against the exchange and its former CEO, highlighting the ongoing regulatory troubles faced by Binance globally.
