Binance Executive Faces Money Laundering Charges as Tax Evasion Case Stalls

The ongoing saga between Nigeria and cryptocurrency exchange Binance took a new turn this week as a detained executive faced money laundering charges. Tigran Gambaryan, Binance’s head of financial crime compliance, appeared in court for the first time since his arrest in February but did not enter a plea.

Gambaryan’s arraignment for money laundering comes after a delay in the tax evasion case against Binance and its executives. The Federal Inland Revenue Service (FIRS) filed charges against the exchange for failing to pay taxes and assisting users in tax evasion. However, the court hearing for these charges has been adjourned.

While the tax evasion case remains on hold, Gambaryan now faces separate charges of laundering over $35 million. His lawyer argues that Gambaryan lacks the authority within Binance to be held responsible for the exchange’s actions. Additionally, he contends that Gambaryan cannot enter a plea until Binance, the primary defendant, has been served.

Further complicating the situation is the escape of Nadeem Anjarwalla, another Binance executive, from Nigerian custody in March. An Interpol red notice has been issued for his arrest, but Anjarwalla will likely be tried in absentia for his alleged role in the money laundering scheme.

Binance Maintains Innocence

Binance continues to deny all charges, claiming that Gambaryan lacks the decision-making power to be held responsible. They argue that the Nigerian government is overstepping its bounds in this case.

The outcome of the court case and the search for Anjarwalla will have a significant impact on the future of cryptocurrency regulation in Nigeria. This case highlights the growing scrutiny that cryptocurrency exchanges face from governments worldwide, particularly concerning money laundering and financial transparency.