Nigerian authorities have officially dropped charges against Tigran Gambaryan, an executive at Binance Holdings, who had been facing allegations of money laundering. Gambaryan, who serves as the Head of Financial Crime Compliance for Binance, has been in detention since April 2024, but recent developments suggest the charges against him have been stepped down.
Gambaryan, alongside Nadeem Anjarwalla, Binance’s British-Kenyan Regional Manager for Africa, had been facing charges brought by Nigeria’s Economic and Financial Crimes Commission (EFCC). The charges, estimated to be worth $35 million, centered on money laundering allegations tied to Binance’s financial activities in Nigeria. While Gambaryan has remained in detention since his arrest, Anjarwalla managed to evade detention and has not been seen since.
At the resumed trial at the Federal High Court in Abuja on Wednesday, the EFCC, represented by its lawyer, made a request to drop the charges against Gambaryan. The EFCC’s decision appears to have been influenced by further internal investigations into the case. Gambaryan’s lawyer, Mark Mordi, a Senior Advocate of Nigeria (SAN), welcomed the prosecution’s application to step down the charges.
In defense of his client, Mordi argued that Gambaryan had no involvement in the broader financial decisions of Binance that were tied to the alleged money laundering operations. He maintained that Gambaryan’s role was limited to compliance oversight, and he was not involved in the company’s financial transactions.
While the charges against Gambaryan have been dropped, the EFCC’s spokesperson, Dele Oyewale, told the BBC that the trial surrounding Binance’s financial operations would continue. Gambaryan, although no longer facing charges, was allowed to leave for medical treatment, raising questions about how the EFCC plans to continue the investigation against Binance in his absence.
Binance, the world’s largest cryptocurrency exchange by volume, has faced scrutiny from regulators worldwide. In Nigeria, the Finance Act requires any company conducting annual business exceeding N25 million to have a physical presence in the country. According to the Federal Inland Revenue Service (FIRS), Binance falls under this category but has failed to adhere to tax regulations, including paying the Company Income Tax (CIT) and remitting the Value Added Tax (VAT).
“Any company conducting business above N25 million annually is required, by the Finance Act, to maintain a presence in Nigeria,” an FIRS representative stated. “Binance falls under this category, but it has failed to comply with these requirements. As a result, the company has violated Nigerian tax laws and faces potential investigation and legal consequences for this infraction.”
This is not the first time Binance has come under fire for failing to comply with regulatory standards. In 2023, the company pleaded guilty to violating anti-money laundering laws in the United States, leading to a plea bargain agreement. As part of the settlement, Binance agreed to pay a hefty fine of $4.3 billion, underscoring the scale of the company’s legal and regulatory challenges globally.
While the dropped charges against Gambaryan may seem like a temporary reprieve for Binance, the EFCC’s ongoing investigation signals that the cryptocurrency giant is far from being in the clear in Nigeria. The scrutiny of Binance’s operations in the country reflects Nigeria’s tightening regulatory oversight of digital currencies and cryptocurrency exchanges, as the government seeks to ensure compliance with tax laws and financial regulations.
Experts believe that the Nigerian government’s pursuit of Binance and its executives could have broader implications for the cryptocurrency industry in the region. With increasing global pressure on exchanges to comply with anti-money laundering and financial regulations, this case could set a precedent for how African countries handle regulatory enforcement in the fast-growing crypto market.
As the case continues to unfold, it remains uncertain what the future holds for Binance in Nigeria. The cryptocurrency exchange must now navigate the complex web of legal and regulatory challenges both in Nigeria and on the international stage. The dropped charges against Gambaryan might provide some relief for the company, but its legal woes in Nigeria are far from over.
Authorities are expected to continue monitoring Binance’s financial operations in Nigeria, and the EFCC could pursue further legal action if the company is found to have violated additional regulations.
