Tigran Gambaryan, Binance’s head of financial crime compliance, has entered a not guilty plea to allegations of money laundering in a Nigerian high court. Despite Binance’s assertion that Gambaryan lacks decision-making authority within the company, the presiding judge has determined he represents the company under Nigerian law, further complicating the case.
A Case of High Stakes
In February, Nigerian authorities detained Gambaryan and colleague Nadeem Anjarwalla, accusing Binance of facilitating the processing of illegal funds worth billions and manipulating the Nigerian naira’s exchange rate. While Anjarwalla managed to escape custody in March, the saga took a more severe turn as both executives sued the Nigerian government, claiming a breach of human rights.
Charges and Controversies
The accusations level against Gambaryan and Anjarwalla by Nigeria’s Federal Inland Revenue Service (FIRS) and the Economic and Financial Crimes Commission (EFCC) include tax evasion and money laundering, spotlighting the intense scrutiny crypto exchanges face regarding regulatory compliance. Despite Binance’s defense highlighting Gambaryan’s limited role in the company’s decision-making processes, Justice Emeka Nwite has maintained that the executives’ past interactions with Nigerian officials regarding Binance’s operations render them suitable representatives of the firm in this legal battle.
The Plea and the Path Forward
Gambaryan’s not guilty plea encompasses five charges, notably including the unlawful negotiation of foreign exchange rates in Nigeria, a serious offense under the country’s Foreign Exchange (Monitoring And Miscellaneous Provisions) Act. As Gambaryan remains in custody pending trial, with the opportunity for bail open until April 18, the case against him and by extension, Binance, underscores the broader challenges facing the cryptocurrency industry in navigating the complex landscape of international finance laws and regulations.
