The Nigerian government has withdrawn all charges against Tigran Gambaryan, an executive at Binance Holdings, who had been facing trial on money laundering and currency speculation charges since his detention in April.
The decision, which came as a surprise to many observers, was announced on Wednesday during a hearing at the Federal High Court in Abuja. A lawyer representing the Economic and Financial Crimes Commission (EFCC), the prosecuting body, informed the court of the withdrawal, effectively ending the legal proceedings against Gambaryan.
The sudden came just days before the case was set to resume on 25 October. On Wednesday, during an unpublicized court hearing, the prosecuting lawyer stated that Gambaryan’s role at Binance did not involve direct financial decision-making, and he was merely an employee. The defense, represented by Senior Advocate of Nigeria (SAN) Mark Mordi, agreed with the prosecution’s position, emphasizing that Gambaryan was not responsible for the company’s broader financial activities.
The decision to drop charges did not come by chance. It was reportedly the result of months of behind-the-scenes diplomatic lobbying involving both U.S. and Nigerian officials. Efforts to secure Gambaryan’s release were bolstered by American lawmakers who argued that his continued detention was unjustified. Letters were sent to both U.S. and Nigerian authorities, urging intervention on his behalf.
The diplomatic lobbying was likely influenced by Gambaryan’s status as a US citizen as well as his position as a prominent executive at a major international company. According to a source familiar with the case, the decision to withdraw the charges was influenced by diplomatic negotiations that had been ongoing for several months, aimed at securing the release of the U.S. national.
The U.S. government’s involvement was seen as a strategic move to ensure fair treatment for one of its citizens abroad, particularly in a case that intersected with financial regulations and the rapidly evolving cryptocurrency industry.
Background of The Case
Gambaryan, a U.S. citizen and a top executive at Binance was accused of participating in financial activities involving money laundering and illegal currency speculation worth $34.4 million. The case was built around five counts related to these financial offenses, with Nigerian authorities alleging that Gambaryan’s involvement breached the country’s anti-money laundering laws.
Following his arraignment, he had been held at Kuje Correctional Centre in Abuja without bail, facing repeated denials of his bail applications due to concerns that he posed a flight risk.
The case had attracted significant international attention, partly because of the involvement of a high-profile executive from Binance, one of the world’s largest cryptocurrency exchanges. It also underscored the growing regulatory pressure on crypto companies operating in Nigeria, which has become one of the leading markets for digital currencies in Africa. The Nigerian government has clamped down on the crypto market amid its fight to tame volatility in the country’s FX market, making Binance and other exchanges prime targets.
Gambaryan’s first bail application was rejected in May. The prosecution noted that a colleague of Gambaryan’s, Nadeem Anjarwalla, had reportedly escaped from custody in Abuja in March. This incident influenced the court’s perception that Gambaryan if granted bail, might also attempt to flee Nigeria.
Throughout the case, Gambaryan’s health had been a focal point of his legal team’s arguments for bail. Reports suggested that his medical condition had worsened during his time at Kuje Correctional Centre, and his lawyers contended that the prison’s medical facilities were inadequate for his needs.
During a subsequent bail hearing on 11 October, Gambaryan’s legal team sought his release on health grounds, arguing that his medical condition had deteriorated while in detention. However, the judge, Emeka Nwite, dismissed the application, stating that Gambaryan had not sufficiently demonstrated that the Nigerian Correctional Service (NCoS) lacked the capability to manage his medical needs.
The judge further ruled that the application constituted an abuse of the court process, as Gambaryan had not withdrawn his ongoing appeal against the earlier bail denial before submitting a new request for bail.
Judge Nwite commented, “There is no gainsaying on this leg alone that this application is bound to fail,” indicating that the procedural issues surrounding the bail application weakened the case for Gambaryan’s release. The judge, however, ordered that the NCoS refer Gambaryan to a standard hospital in Abuja for a period of two to three days to receive medical treatment.
Binance Not Off The Legal Hook
While the case against Gambaryan has been dismissed, Binance is still facing legal scrutiny in Nigeria. The company is involved in a separate tax evasion case before another judge of the Federal High Court in Abuja.
This case is part of a broader crackdown on tax compliance and financial practices in Nigeria, which has sought to regulate the operations of cryptocurrency firms to curb illicit financial flows and increase tax revenues.
The Withdrawal Stirs Curiosity
The withdrawal of charges marks a significant development in what has been a complex and controversial case. For some, it raises concerns about the influence of diplomatic pressure in the resolution of legal matters involving foreign nationals.
The suddenness of the decision, coupled with the low-profile nature of the Wednesday hearing, has led to speculation that the Nigerian government sought to avoid further international scrutiny and diplomatic friction with the U.S.
