Nigerian Court Denies Bail To Binance Executive Accused Of $35M Laundering Charges

The world’s largest cryptocurrency exchange, Binance, has been embroiled in a complex legal battle with Nigerian authorities over allegations of money laundering, tax evasion, and currency speculation.

Two senior Binance executives are at the center of the dispute: Tigran Gambaryan, the head of financial crime compliance, and Nadeem Anjarwalla, the regional manager for Binance in Africa. The Nigerian government has charged both men with a litany of financial crimes.

Binance Embroiled In High-Stakes Legal Battle

The legal saga began earlier this year when Gambaryan traveled to Nigeria to participate in talks with the government about Binance’s operations in the country. However, upon arrival, he was promptly arrested and incarcerated.

A Nigerian court has dealt another blow to Binance, refusing to grant Gambaryan bail as his money laundering trial begins.

According to local media reports, Justice Emeka Nwite of the Federal High Court in Abuja cited Gambaryan’s flight risk as the primary reason for denying bail. 

The prosecution argued that Gambaryan, who holds both American and Armenian citizenship, could easily flee the country if released. They also noted his colleague Anjarwalla’s escape from custody in March, which they claimed was suspicious.

Nigeria Ramps Up Crackdown

Binance’s legal troubles in Nigeria stem from a broader crackdown by the government on the cryptocurrency platform. Authorities have accused the exchange of facilitating over $26 billion in illicit funds transfers without proper oversight. 

The Central Bank of Nigeria (CBN) has alleged that Binance engaged in tax evasion, currency speculation, and money laundering, totaling $35.4 million.

Anjarwalla, who served as Binance’s regional manager for Africa, was also charged alongside Gambaryan. However, in March, he escaped from the custody of Nigeria’s National Security Adviser, Nuhu Ribadu. The Nigerian government traced him to Kenya, where local authorities reportedly arrested him.

The legal battle between Binance and Nigeria highlights the growing regulatory scrutiny facing cryptocurrency exchanges globally. As digital assets become more mainstream, governments are increasingly increasing efforts to monitor and control the flow of funds through these platforms.

For Binance, the stakes in this case are high. Conviction of its executives could result in hefty fines and potential jail time and further damage the exchange’s reputation and ability to operate in one of Africa’s largest economies. 

Over the past three days, Binance’s native token, BNB, has been trading within a range of $570 to $583. This price movement comes as the broader cryptocurrency market appears to have regained its bullish momentum, with the largest digital assets showing signs of strength.

Featured image from Shutterstock, chart from TradingView.com