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    HomeEcosystem NewsWESTERN AFRICANigeria Halts Legal Proceedings Against Binance Executive Gambaryan Amid Diplomatic Pressure

    Nigeria Halts Legal Proceedings Against Binance Executive Gambaryan Amid Diplomatic Pressure

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    The government of Nigeria has withdrawn all criminal charges against Tigran Gambaryan, an executive at Binance Holdings who had been facing money laundering allegations since April. The Economic and Financial Crimes Commission (EFCC) made the announcement at the Federal High Court in Abuja on Wednesday morning, bringing a halt to a legal case that has attracted significant international attention.

    Gambaryan, a U.S. citizen and a high-ranking compliance officer at Binance, had been held in detention while awaiting trial. His case became a diplomatic issue between Nigeria and the United States, with U.S. officials lobbying for his release. The Biden administration had expressed concerns over the conditions of Gambaryan’s detention, particularly after reports surfaced about his deteriorating health.

    During Wednesday’s court session, the EFCC’s lead lawyer, Ekele Iheanacho, Senior Advocate of Nigeria (SAN), clarified that Gambaryan’s role within Binance was limited to compliance matters and that he held no executive decision-making authority over the company’s broader financial operations. This was a crucial point, as the charges against him were tied to Binance’s alleged involvement in facilitating illegal cross-border transactions exceeding $26 billion.

    Gambaryan’s defense team, led by Senior Advocate of Nigeria Mark Mordi, agreed with the EFCC’s stance, reinforcing the argument that Gambaryan’s responsibilities did not extend to the actions under investigation. Mordi reiterated that his client was merely an employee with no influence over the company’s wider operations, distancing him from the accusations of money laundering and illegal financial dealings.

    The case had taken a dramatic turn in recent months due to concerns over Gambaryan’s health. His absence from the court proceedings on Friday, October 20, was explained by the Nigeria Correctional Service (NCS), which stated that he was critically ill and unable to attend. His legal team later confirmed that Gambaryan had been suffering from a range of health issues, including a herniated disc, pneumonia, and malaria, conditions allegedly contracted during his detention. A video showing Gambaryan using crutches during his detention went viral, prompting further calls for his release on humanitarian grounds.

    Diplomatic tensions have escalated as a result, with the U.S. government expressing alarm over Gambaryan’s treatment. Senior U.S. officials, including Secretary of State Antony Blinken and the U.S. Ambassador to Nigeria, have reportedly raised the issue with Nigerian authorities. Congressional representatives also visited Nigeria to assess the situation, warning that the case could become a major diplomatic flashpoint if not resolved.

    While the charges against Gambaryan have now been dropped, the broader investigation into Binance’s operations in Nigeria remains ongoing. Nigerian authorities have accused the cryptocurrency exchange of facilitating illicit transactions that contributed to the sharp depreciation of the Nigerian Naira. In response to the investigation, Binance has removed the Naira from its platform, but the exchange continues to be widely used by Nigerians for cryptocurrency trading and digital asset management.

    The decision to withdraw the charges against Gambaryan comes ahead of a scheduled hearing on October 25, which was expected to focus on his health and the legal merits of the case. The dropping of charges against the Binance exec effectively concludes his legal troubles in Nigeria, but the intersection of regulatory scrutiny, health concerns, and diplomatic intervention has made this case a focal point in discussions about cryptocurrency regulation in the country.

    The withdrawal of charges is likely to ease some of the diplomatic pressure on Nigeria from the U.S. government, but it also raises questions about the broader implications of the investigation into Binance. With the company still under scrutiny for its role in the Nigerian financial ecosystem, the outcome of this case may not mark the end of regulatory actions targeting digital currency exchanges operating in the country.

    Editor’s Note:
    Tigran Gambaryan has been released after the Nigerian government dropped the court case against him.

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