Freedom! Nigerian Court Clears Binance Exec, Orders Immediate Release

Tigran Gambaryan, a Binance executive who had been detained since February, has been officially cleared of all charges by the Nigerian government.

The Economic and Financial Crimes Commission (EFCC) requested the withdrawal of the case at the Federal High Court in Abuja during a court session on October 23, 2024.

This announcement was made during the session. Gambaryan, the chief of financial crime compliance at Binance and a US citizen, was previously accused of money laundering and currency manipulation. However, these accusations have been dismissed.

Gambaryan: A Long Ordeal

Gambaryan’s legal difficulties commenced upon his arrival in Nigeria to meet with local officials. He and his colleague Nadeem Anjarwalla were under investigation for allegedly contributing to the volatility of the naira, the currency of Nigeria. Gambaryan endured severe conditions for eight months, while Anjarwalla was able to evade legal custody earlier this year.

Ultimately, demands for his release on diplomatic concerns and humanitarian grounds were prompted by reports that he was suffering from a variety of health issues, such as malaria and complications from a herniated disc.

Gambaryan’s legal counsel, Mark Mordi, concurred with the EFCC’s request, and Justice Emeka Nwite dismissed the charges.

As of today, the market cap of cryptocurrencies stood at $2.24 trillion. Chart: TradingView.com

Mordi underscored that Gambaryan was solely an employee of Binance and did not participate in the company’s overarching financial decisions.

Gambaryan’s release is a significant milestone for both him and Binance, which has been subjected to heightened scrutiny from regulators worldwide in the wake of the court’s ruling.

Released On Health Concerns

Concerns about Gambaryan’s worsening health greatly influenced the decision to stop the proceedings. Dele Oyewale, a Nigerian government spokesman, claimed that Gambaryan’s illness was worsening to the point that outside of Nigeria urgent medical attention was needed.

This humanitarian factor helped the judge dismiss the case. Many wonder what Gambaryan’s departure from Nigeria will mean for Binance and its African activities.

Binance and Cryptocurrency Regulation Implications

This case has underscored the persistent tensions between regulatory bodies in numerous countries and cryptocurrency exchanges such as Binance. The Nigerian government said that Binance let users send money out of the naira, which made the economy less stable and made it easier for people to hide money.

These allegations came shortly after Binance reached a $4.3 billion settlement with US regulators over similar accusations.

This incident raises concerns regarding the regulation of cryptocurrency platforms in the future, as Nigeria is currently experiencing its most severe economic crisis in decades.

The crypto community has expressed relief at Gambaryan’s release, but it is still concerned about the potential repercussions for exchanges that operate in challenging regulatory environments.

Featured image from Darren Joseph/DL News, chart from TradingView