FG Withdraws $35 Million Money Laundering Charges Against Binance Executive

Binance Executive Tigran Gambaryan
The Federal Government of Nigeria has withdrawn money laundering charges against Tigran Gambaryan, a top executive of Binance Holdings Limited. Gambaryan, who serves as the U.S. head of financial crime compliance for the global cryptocurrency exchange, had been facing allegations tied to a $35 million money laundering case.
The charges were initially brought by the Economic and Financial Crimes Commission (EFCC) and implicated both Gambaryan and Binance’s regional manager for Africa, Nadeem Anjarwalla.
Gambaryan and Anjarwalla were detained by the office of the National Security Adviser (NSA), with both executives facing severe charges related to their activities on the Binance platform.
However, on March 22, 2024, Anjarwalla escaped lawful custody, leaving Gambaryan to face the legal process alone. In April 2024, Gambaryan was arraigned in court, which subsequently ordered his remand to Kuje Correctional Facility pending trial.
Despite the gravity of the charges and Gambaryan’s prolonged detention, the government unexpectedly dropped the case on Wednesday, October 23, 2024. This decision brings a surprising end to a high-profile case that had attracted international attention, given the scale of the money laundering allegations and Binance’s pivotal role in the global cryptocurrency market.
Ekene Iheanacho, Counsel to the EFCC, confirmed this and said the charges were dropped because of “diplomatic issues” and that Gambaryan’s health has worsened.

Court Orders Immediate Release of Gambaryan

During Wednesday’s proceedings, R.U. Adaba, counsel representing the EFCC, applied to the court to stop the prosecution of Gambaryan. She explained that diplomatic interventions between Nigerian and U.S. authorities played a significant role in the decision to drop the charges, coupled with the severity of Gambaryan’s health condition.

According to Adaba, the defendant had been struggling with mobility issues, requiring a wheelchair or crutches, and surgery had been recommended to address his ailments.

Despite the EFCC’s decision to withdraw the charges against Gambaryan, the court did not grant him full acquittal. Judge Nwite ruled that Gambaryan be discharged due to his role as an employee, not a principal figure in the case, but stopped short of dismissing the case entirely. The judge also directed that Gambaryan be released immediately from the correctional facility.

Gambaryan’s health had been a recurring concern during the trial, with multiple failed bail applications based on his worsening condition. The court previously rejected his bail requests, deeming him a flight risk, especially in light of Anjarwalla’s escape.

Money Laundering Charges Against Binance Remain

Although Gambaryan was discharged, the court sustained the money laundering charges against Binance Holdings Limited, which now stands as the sole defendant in the case. The cryptocurrency exchange is accused of laundering $34.4 million and engaging in currency speculation, actions that the EFCC claims have negatively impacted Nigeria’s forex market and economy.

The case will continue, with the next hearing set for November 22 and 25, 2024. The decision to drop charges against Gambaryan marks the culmination of months of behind-the-scenes diplomatic negotiations between Nigeria and the U.S., with pressure from U.S. lawmakers to secure his release after the court twice denied his bail requests earlier this year.

The upcoming hearings will determine the future of the case as the government continues its legal proceedings against Binance.

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