- The judge rejects the defense argument presented by Binance's US-based head of compliance.
- Binance is also accused of money laundering and tax violations in Nigeria.
- The crisis is worsening for cryptocurrency exchanges in Africa's most populous country.
It took six weeks, but Tigran Gambaryan was finally able to declare his innocence in a Nigerian court.
Gambarian, a senior executive at US platform Binance, on Monday pleaded not guilty to money laundering charges and was placed in prison awaiting trial.
Gambarian's lawyer argued that his client should not be responsible for Binance's activities in the African country because he does not have decision-making authority in the company's business operations.
Gambarian is the head of the cryptocurrency exchange's financial crimes compliance unit, according to his LinkedIn profile.
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Past trips
But Judge Emeka Nwate rejected Gambarian's argument and ruled that he had served as a representative for Binance on previous trips to Nigeria to train officials on detecting cryptocurrency fraud.
Gambarian, a former IRS special agent, helped Nigerian officials recover $400,000 in cryptocurrency crime proceeds, according to Binance.
Noite cited recent Binance statements that identified Gambarian as an agent for the company. The judge rejected Gambarian's defense, saying that he was “neither here nor there,” according to the procedures he observed DL News.
Gambaryan will be detained at Kuje Prison, a medium-security detention center in Abuja, the capital, until at least April 18. This is when a hearing will be held to determine whether he can be released on bail.
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Binance denounced the accusations against Gambarian as “baseless.”
“It is outrageous that he is being remanded in a prison like Kuje Correctional Prison.”
— Binance spokesperson
A company spokesperson said: “We are deeply disappointed that Tigran Gambaryan, who has no decision-making authority at the company, remains detained.” DL News on monday.
“Tigran has dedicated himself to public service and fighting crime for most of his life. These charges against him are baseless.
“It is outrageous that he is locked up in a prison like Kuje Correctional Prison.”
These developments represent a serious escalation of Gambarian's legal status.
In the past week or so, Gambarian has gone from being under house arrest without being charged to facing an indictment for $35 million in money laundering from inside his prison cell.
Binance is also accused of the same allegations.
guest house
Gambarian's attorney, Mark Murdy, did not immediately respond DL News Request for comment. Binance representatives did not respond to a request for comment.
Gambarian and his colleague Nadeem Angarwala, a British national and Binance's regional director in Kenya, were detained at a government guesthouse shortly after their arrival in Nigeria at the end of February.
Nigerian security and anti-corruption officials have opened a wide-ranging investigation into whether the cryptocurrency exchange, which is not licensed in the country, facilitates currency manipulation and illicit financial transactions.
Gambarian and Angarwala arrived in Abuja to discuss the issues when the talks collapsed.
Annagarwala managed to evade his guards after praying in a mosque on March 22, and fled the country with a second passport that he did not surrender.
Gambaryan and Binance are also facing tax evasion charges filed by Nigeria's Federal Inland Revenue Service.
Judge Nuit set May 2 as the start of court proceedings for both Binance and Gambaryan.
Updated on April 8 to report Binance's comments on the latest developments.
Osatu Afan Nomayo He is our DeFi correspondent based in Nigeria. It covers DeFi and technology. To share tips or information about stories, please contact him at osato@dlnews.com.
