On May 22, 2024, Binance executive Tigran Gambaryan collapsed during his trial on money laundering charges at the Federal Court in Abuja, Nigeria. This dramatic scene highlighted the tensions surrounding the charges against the cryptocurrency giant and its executives.
Charges against Gambaryan and Binance
Tigran Gambaryan is currently being held at the Kuje Correctional Center, Abuja. He faces several serious charges from the Nigerian Economic and Financial Crimes Commission (EFCC). The charges include foreign exchange violations and money laundering. The charges come after Gambaryan pleaded not guilty in April 2024.
In parallel, the Federal Inland Revenue Service of Nigeria (FIRS) has also filed charges of tax evasion against Binance and its directors, including Gambaryan and Nadeem Anjarwalla. The charges cover failure to register with FIRS, non-payment of corporate tax and VAT, and facilitation of tax evasion.
| Accusations | Details |
|---|---|
| Foreign exchange violations | Accusations made by the EFCC |
| Money laundering | Accusations made by the EFCC |
| Tax evasion | Accusations made by FIRS |
Trial proceedings and courtroom incidents
A conspicuous absence
On the day of the trial, Tigran Gambaryan did not appear for a separate hearing on tax evasion charges. However, he was present for the money-laundering trial. As the case was called, Gambaryan, seated in the back row, did not respond. His lawyer, Mark Mordi, had to assist him to take the stand.
Collapse live
The situation took a dramatic turn when Gambaryan suddenly collapsed in the courtroom. His lawyer explained that his client had been ill since the last hearing. A written request had been submitted to inform the court of his state of health. Due to this incident, Mordi requested an adjournment to allow Gambaryan to receive medical treatment, which the court agreed to. The next hearing dates were set for June 20 and 21 for cross-examination and continuation of the trial.
Reactions and implications for Binance
The refusal of Gambaryan’s bail application by Judge Emeka Nwite, on the grounds of flight risk, shows the severity with which the Nigerian authorities are treating this case. In March 2024, Binance CEO Richard Teng claimed that Nigerian officials had attempted to coerce Binance into a secret crypto-currency settlement.
Impact on the Nigerian market
In response to these accusations and growing regulatory pressure, Binance announced on March 5 that it would cease all trading in Nigerian naira, thereby withdrawing from the Nigerian market. Binance’s peer-to-peer trading platform also removed all naira trading pairs in February.
| Date | Event |
|---|---|
| February 2024 | Binance discontinues naira trading pairs |
| March 2024 | Cessation of naira transactions by Binance |
| April 2024 | Gambaryan transferred to Kuje Correctional Centre |
| May 2024 | Gambaryan collapses during trial |
The pressure on Binance and its executives continues to grow, and this case in Nigeria could have major repercussions for the regulation of crypto-currencies in the region.
Conclusion
Tigran Gambaryan’s collapse in the middle of the courtroom is a landmark episode in the complex and tense trial Binance is facing in Nigeria. With serious charges of money laundering and tax evasion, this trial could well redefine regulatory oversight of crypto-currency platforms in the country. What happens next will be closely scrutinized by market players and regulators worldwide.
