Tigran Gambaryan, the chief of financial crime compliance at Binance, has been officially exonerated of all charges by the Nigerian authorities. This marks the end of an eight-month-long legal ordeal for the executive, following a request by the Economic and Financial Crimes Commission (EFCC) to drop the case.
The announcement was made during a session at the Federal High Court in Abuja on October 23, 2024, where the initial accusations of money laundering and currency manipulation were nullified.
Tigran Gambaryan's challenges began upon his arrival in Nigeria to confer with local officials. He, alongside his colleague Nadeem Anjarwalla, faced allegations of contributing to naira volatility. In what became a daunting experience, Gambaryan spent eight months in custody enduring severe conditions, while Anjarwalla managed to evade arrest earlier this year. Calls for his release intensified owing to diplomatic pressures and humanitarian concerns, exacerbated by his deteriorating health. These included complications from malaria and a herniated disc. Legal representative Mark Mordi agreed to the EFCC's decision, with Justice Emeka Nwite ultimately dismissing the case.
Gambaryan's attorney noted that his involvement with Binance was limited to compliance and didn't extend to strategic financial decisions. His release signifies a pivotal moment for him and Binance as scrutiny on the company from global regulators has markedly increased following the court's decision.
The deteriorating state of Gambaryan's health significantly influenced the court's move to halt legal proceedings. Nigerian government spokesperson Dele Oyewale highlighted that Gambaryan's medical conditions required urgent attention outside Nigeria, leading to the case's dismissal on humanitarian grounds. His exit from Nigeria now poses questions about potential impacts on Binance's operations within Africa.
This case highlights the ongoing tensions between regulatory agencies globally and cryptocurrency platforms like Binance. The Nigerian government accused Binance of enabling the outflow of funds, destabilizing the economy, and facilitating money concealment. These allegations emerged soon after Binance settled a $4.3 billion dispute with US regulators over similar issues.
The episode raises critical questions about the regulatory framework governing crypto exchanges, especially as Nigeria grapples with its deepest economic crisis in decades. While the crypto community welcomes Gambaryan's release, apprehensions remain about future operational challenges in stringent regulatory environments.