Tigran Gambaryan, a Binance executive who had been held since February, has been formally exonerated of all accusations by the Nigerian authorities.
The Economic and Financial Crimes Commission (EFCC) requested to retract the case during a hearing at the Federal High Court in Abuja on October 23, 2024.
This declaration was made during the proceeding. Gambaryan, who serves as the chief of financial crime compliance at Binance and is a U.S. citizen, was formerly charged with money laundering and currency manipulation. However, these charges have now been dismissed.
BREAKING: Nigerian Government Drops All Money Laundering Charges Against Binance Executive Gambaryan | Sahara Reporters https://t.co/K1fNs5KVmo pic.twitter.com/5oJ0YfImpP
— Sahara Reporters (@SaharaReporters) October 23, 2024
Gambaryan: A Prolonged Struggle
Gambaryan’s legal challenges began when he arrived in Nigeria for discussions with local officials. Both he and his colleague Nadeem Anjarwalla were under scrutiny for allegedly impacting the stability of the naira, Nigeria’s currency. Gambaryan faced harsh conditions for eight months, while Anjarwalla managed to evade legal detention earlier this year.
Ultimately, pushes for his release on diplomatic and humanitarian bases were triggered by reports of his deteriorating health, including issues like malaria and problems related to a herniated disc.
Mark Mordi, Gambaryan’s lawyer, aligned with the EFCC’s request, leading Justice Emeka Nwite to dismiss the allegations.
Currently, the market cap of cryptocurrencies stands at $2.24 trillion. Chart: TradingView.com
Mordi emphasized that Gambaryan was merely an employee of Binance and was not involved in the broader financial decisions of the company.
The release of Gambaryan marks a significant moment for him and Binance, which has faced increased scrutiny from regulatory bodies across the globe following the court’s decision.
Released Due to Health Issues
Concerns regarding Gambaryan’s declining health played a vital role in the decision to halt the legal proceedings. Nigerian government spokesperson Dele Oyewale stated that Gambaryan’s condition had deteriorated to the point that he required urgent medical care outside Nigeria.
This humanitarian aspect was critical in the judge’s decision to dismiss the case. Questions linger about what Gambaryan’s exit from Nigeria signifies for Binance and its operations in Africa.
Implications for Binance and Cryptocurrency Regulation
This situation has highlighted the ongoing tensions between regulators in various nations and cryptocurrency exchanges like Binance. The Nigerian government claimed that Binance facilitated users in transferring money out of the naira, contributing to economic instability and enabling money concealment.
These accusations emerged shortly after Binance settled with U.S. regulators for $4.3 billion over similar claims.
The incident raises concerns about the future regulation of cryptocurrency platforms, especially as Nigeria grapples with its worst economic crisis in decades.
The crypto community has expressed relief over Gambaryan’s release; however, there are still worries about the longer-term implications for exchanges operating in complex regulatory landscapes.
Featured image from Darren Joseph/DL News, chart from TradingView
