A Federal High Court sitting in Nigeria on Friday rejected a fresh bail application for Binance Holdings executive Tigran Gambaryan, who has been detained in the country since February 2024. Gambaryan, who faces money laundering charges involving $35.4 million, sought temporary release on medical grounds, but the court denied the request.
Gambaryan’s lawyer, Mark Mordi (SAN), had argued that his client’s health was in a “perilous” state, requiring urgent surgery for a herniated disc as well as psychiatric care due to severe anxiety and depression. Mordi requested a six-week bail to allow Gambaryan to receive medical treatment outside of prison, contending that the current care in custody was inadequate.
However, the Economic and Financial Crimes Commission’s (EFCC) counsel, Ekele Iheanacho, opposed the application, asserting that the defense was overstating the severity of Gambaryan’s condition. Iheanacho maintained that the executive could receive adequate treatment at the Kuje Correctional Facility, adding that Gambaryan had already been taken to several reputable medical institutions, including the State House Clinic and Nizamiye Hospital. Medical reports indicated that he had refused some treatment and that his condition was being appropriately managed.
In his ruling, Justice Nwite dismissed the bail application, emphasizing that Gambaryan’s health was under the care of “renowned Nigerian medical experts” and did not warrant release. However, the judge ordered the Nigerian Correctional Service to ensure that Gambaryan receives treatment at a standard hospital in Abuja for up to two weeks, under secure conditions. The trial was adjourned to October 18, 2024, with additional hearings set for November.
Gambaryan’s prolonged detention and his alleged deteriorating health have sparked significant diplomatic friction between Nigeria and the United States. In recent weeks, the Biden administration has intensified efforts to secure his release on humanitarian grounds. Both US Secretary of State Antony Blinken and the US Ambassador to Nigeria have raised concerns with Nigerian authorities, according to reports from The New York Times. These diplomatic overtures follow visits from US congressional representatives, including French Hill and Chrissy Houlahan, who met with Gambaryan to assess his condition.
The US government’s intervention reflects mounting unease over Gambaryan’s well-being, especially after a viral video surfaced showing him using crutches, reportedly due to a herniated disc, pneumonia, and malaria contracted during his incarceration. Despite these concerns, the EFCC has downplayed the severity of Gambaryan’s health issues, dismissing them as exaggerated and continuing to oppose his release.
The tensions between Nigeria and the US over the case are exacerbating broader geopolitical strains, with unnamed State Department officials warning that Gambaryan’s situation is becoming a flashpoint in bilateral relations. The US is reportedly engaging with key Nigerian officials, including the President and Attorney General, to resolve the matter swiftly.
The charges against Gambaryan, which include money laundering and tax evasion, are part of a broader investigation into Binance’s activities in Nigeria. Nigerian authorities allege that Binance facilitated illegal cross-border transfers amounting to more than $26 billion, contributing to the ongoing devaluation of the Nigerian Naira. While Binance has since removed the Naira from its platform, Nigerians continue to use the exchange for cryptocurrency trading and as a wallet for digital assets.
Binance’s CEO, Richard Teng, has publicly advocated for Gambaryan’s release, describing him as a mid-level employee unfairly caught up in the company’s legal challenges. Teng’s stance reflects wider sentiment in the cryptocurrency community, which views the growing regulatory scrutiny of Binance as part of broader efforts to rein in the crypto industry.
Further complicating the situation is the recent release of Binance founder Changpeng Zhao, commonly known as “CZ,” who served four months in a California correctional facility for regulatory violations related to the company’s anti-money laundering practices. CZ’s release, expedited due to standard procedures for inmates with weekend release dates, has drawn attention to Binance’s ongoing legal battles. Since his release, Zhao has hinted at shifting his focus to philanthropy, although he remains Binance’s largest shareholder and a key figure in its operations.