Binance executive Tigran Gambaryan pleads not guilty to money laundering charges; Co-detained executive escapes

Binance executive, Tigran Gambaryan, was detained and faced charges of money laundering presented to him by the Economic and Financial Crimes Commission (EFCC). He declared himself not guilty in response to these allegations.

In the four-count charge put forward by the court in Abuja, Gambaryan is accused of tax evasion and laundering money amounting to more than $35 million. Though he refrained from entering a plea during his first appearance in court, Gambaryan issued a not guilty plea at his formal arraignment for the money laundering charges on April 8, 2024.

The proceeding was adjourned until April 18, 2024. In the meantime, Gambaryan would continue to be held at the Kuje Correctional Centre while his bail application is being processed. His trial is expected to commence on May 2, 2024.

The Nigerian government apprehended two executives of Binance on February 26, 2024, as part of a crackdown on cryptocurrency platforms in the country. Subsequently, in March, Binance was charged with tax evasion by the Nigerian Federal Inland Revenue Service (FIRS).

As per the FIRS, Binance broke four tax rules, including neglecting to pay corporate income tax and facilitating tax avoidance by customers using its platform. As of now, Gambaryan’s not guilty plea for the money laundering charges has been recorded, but he is due for a formal arraignment on tax evasion charges on April 19, 2024.

Tigran Gambaryan, a Binance executive, is presently in a predicament with the authorities in Nigeria, while his fellow detained executive, Nadeem Anjarwalla, managed to escape from custody and flee the country. During Gambaryan’s appearance in court, his appeal to receive service without the inclusion of the charges concerning Anjarwalla was rejected by Justice Emeka Nwite of the Abuja Division of the Federal High Court.

In regards to this case, it appears that Justice Emeka Nwite from the Abuja Division of the Federal High Court has made a notable ruling. He determined that under Section 478 of the Administration of Criminal Justice Act, it would be proper for Binance to be served through Gambaryan. This is because the legislation declares that a company’s primary representative within the jurisdiction must be served.

Additionally, it was suggested that Gambaryan should acknowledge responsibility for Binance and carry out his legal duties.

Conversely, Binance made an appeal to separate Gambaryan from the current issue unfolding with the Nigerian authorities. According to the company’s statement, “Gambaryan has no decision-making authority in the company and is a strict law enforcement professional who is not part of Binance management.”