Binance Official Pleads Not Guilty to Money Laundering Charges in Nigeria

A senior official at Binance, Tigran Gambaryan, has reportedly pled not guilty to allegations of money laundering in a recent court appearance, according to a local media report.

Legal Challenges for Binance Executives in Nigeria

Gambaryan, along with his colleague Nadeem Anjarwalla, has been detained in Nigeria since February. Nigerian authorities claim that Binance was involved in processing illegal transactions amounting to billions of dollars and manipulating the exchange rate of the Nigerian naira. While Gambaryan awaits trial, he can apply for bail until April 19, as reported by Cryptopolitan.

Gambaryan’s lawyer, Chukwuka Ikuazom, maintained that his client, although charged together with his co-defendant, who is a fugitive, was not competent to plead for him.

In March, Anjarwalla escaped from custody, and both executives have since sued the Nigerian Government for human rights violations. The FIRS of Nigeria has accused Binance, Gambaryan, and Anjarwalla of tax evasion. Equally, the Economic and Financial Crimes Commission (EFCC) has accused them of money laundering.

Binance Under Scrutiny

Binance had earlier announced that Gambaryan should not be held responsible for the company because he did not have the authority to make decisions. However, a court in Nigeria has gone ahead with the suit. Justice Emeka Nwite argued that Gambaryan and Anjarwalla had earlier liaised with authorities in the country on the company’s operations, and hence, they could possibly be acting as its agents.

The Judge stated that a person who does not have a physical presence in Nigeria but has a physical agent in Nigeria can be served through that agent.

Gambaryan pleaded not guilty to five charges, one of which also accuses him, along with Anjarwalla and Binance, of committing illegal manipulation of foreign exchange rates in Nigeria through the cryptocurrency exchange. This act is said to be an error under section 29(1)(C) of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act.