Binance executive denied bail in Nigeria amid $35 million money laundering trial

Justice Emeka Nwite of the nation's Federal High Court in Abuja has refused to grant bail to Binance executive Tigran Gambaryan. Gambaryan and Binance are facing money laundering and tax violation charges in Nigeria.

According to Nigerian news outlet The Nation, a ruling on Friday saw Nwite agree with the prosecution's argument that Gambaryan posed a flight risk. According to reports, the judge stated in his ruling that several factors, including the nature of the offense and its severity, must be considered when deciding whether or not to grant bail to the defendant.

Binance exec in Nigerian money laundering trial

The trial of Binance's head of financial crime compliance on a $35 million money laundering indictment began on Friday. 

Gambaryan has been incarcerated in Nigeria since his arrival in late February. He entered the country to discuss the cryptocurrency exchange’s operations with the government.

The Nigerian Economic and Financial Crimes Commission is prosecuting the money laundering case, while Nigeria’s tax authority, the Federal Inland Revenue Service, is handling the tax violation charge. Gambaryan pleaded not guilty to the money laundering charge on April 8.

Regarding the recent development, a Binance spokesperson told The Block: "We are deeply disappointed that Tigran Gambaryan, who has no decision-making power in the company, continues to be detained. Tigran has been dedicated to public service and fighting crime for most of his life. These charges against him are completely meritless. He should be freed while discussions continue between Binance and Nigerian government officials."

Binance CEO calls for Gambaryan's release

Binance CEO Richard Teng has spoken out on Gambaryan's ongoing detention, publicly claiming that the crypto exchange’s compliance officer is "innocent and must be released."

Gambaryan, a U.S. citizen overseeing financial crime compliance at the crypto exchange, and Nadeem Anjarwalla, Binance’s Africa regional manager, were detained on Feb. 26 following their arrival in Nigeria’s capital city, Abuja. On Feb. 28, criminal charges of tax evasion and money laundering were filed against them. Anjarwalla later escaped from custody on March 22.

"To invite a company’s mid-level employees for collaborative policy meetings, only to detain them, has set a dangerous new precedent for all companies worldwide," Teng wrote in a blog post earlier this month.