In a sudden reversal, the Nigerian government is set to free Tigran Gambaryan, a Binance Holdings executive, after it dropped all charges against him. Gambaryan had been detained since March 2024, facing trial for money laundering and operating an unlicensed financial institution.
The Economic and Financial Crimes Commission (EFCC) made the withdrawal of charges at the Federal High Court in Abuja on Wednesday morning.
The international reaction over Gambaryan’s arrest and detention by Nigeria
Gambaryan’s arrest in February sparked international attention, particularly in the cryptocurrency community. The former IRS agent and US citizen was in Nigeria to address regulatory concerns about Binance when he was unexpectedly taken into custody.
During the trial, the prosecution’s lawyer stated that Gambaryan was merely an employee of Binance, not involved in the company’s broader financial decisions. Mark Mordi, Gambaryan’s defense lawyer and Senior Advocate of Nigeria, concurred with the prosecution’s assessment, underscoring Gambaryan’s limited role within the company.
Behind-the-scenes diplomatic efforts played a significant role in securing Gambaryan’s release. Sources indicate that intense negotiations took place between Nigerian and US government officials, with US lawmakers actively campaigning for Gambaryan’s freedom. Several lawmakers wrote to relevant authorities, urging them to intervene and secure Gambaryan’s release.
As reported earlier by CAB, the international community has been advocating for Gambaryan’s release, with over 5,000 signatures on a petition to the US State Department, President Biden, and Nigerian authorities.
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The EFCC eventually adopts the FIRS approach, following apparent diplomatic pressure
Earlier, Tigran Gambaryan was dropped as a co-defendant in the Federal Inland Revenue Services (FIRS) tax-evasion case against Binance. This development came after Binance appointed a local representative, Ayodele Omotilewa, as required by the Nigerian authorities.
However, Gambaryan’s ordeal continued in the hands of Nigerian authorities due to the separate EFCC-related case. He remained detained at the Kuje Correctional Centre due to a separate action by the EFCC, which alleges money laundering and terrorism financing. It’s worth noting that Gambaryan’s health has severely deteriorated during his detention, with reports of pneumonia, malaria, and a herniated disc. The Federal High Court however determined that he was receiving proper medical attention and consequently bail was denied.
Read also: Nigeria’s detention of Binance executive sparks concerns over regulatory approach.
Questions about Nigerian Government’s approach to crypto regulations
The dropping of charges against Gambaryan raises questions about the Nigerian government’s approach to regulating cryptocurrencies and its treatment of foreign business executives. It remains to be seen whether this development signals a shift towards more collaborative efforts between regulators and industry players.
Binance’s resolution with the Nigerian government could have far-reaching implications for the cryptocurrency industry, potentially paving the way for increased cooperation and clarity on regulatory frameworks.
Without doubt, Gambaryan’s long detention in Nigeria was not sending the right messages to the international community. It did not only scare investors but also put Nigeria on the wrong path with the global compliance community. It is not also a plus for international diplomacy. It was indeed high time Nigeria reconsidered its approach to the prosecution of Binance, ensuring that Gambaryan, an employee, returns home to his family in the US.
Stay tuned for further updates on this developing story.
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