Lawyer Accuses Nigeria of Holding Former IRS-CI Special Agent and Binance Exec Tigran Gambaryan as ‘State-Sanctioned Hostage’
On Tuesday, April 23, 2024, Justice Emeka Nwite of the Federal High Court in Abuja, Nigeria adjourned the ruling on the bail application of Tigran Gambaryan, a former IRS-CI special agent and head of financial compliance at cryptocurrency exchange Binance Holdings Limited. Gambaryan is facing money laundering charges filed by the Economic and Financial Crimes Commission (EFCC).
Justice Nwite fixed May 17 to decide whether Gambaryan, who is currently detained in Kuje prison, should be released on bail until the determination of the case against him. According to Vanguard, the defense counsel for Gambaryan, Mark Mordi, had applied for bail citing provisions of Nigeria’s Administration of Criminal Justice Act (ACJA). However, the EFCC prosecutor Ekele Iheanacho opposed the bail, arguing that Gambaryan may flee the country if released.
The EFCC told the court it received intelligence that Gambaryan was attempting to procure a new international passport from the U.S. embassy, despite his original passport already being in EFCC’s custody. Gambaryan holds Armenian citizenship and there is a risk he may jump bail, according to the anti-graft agency. EFCC also recalled that Binance’s Africa regional manager Nadeem Anjarwalla, who was earlier detained, had escaped custody and fled to Kenya.
In his bail application, Gambaryan stated that the charges against him are bailable, and he is presumed innocent under the Nigerian Constitution. However, the EFCC said releasing Gambaryan could jeopardize their investigation given that Binance, a multinational cryptocurrency exchange, operates virtually. The prosecutor also pointed out that Gambaryan has no community ties in Nigeria that would ensure he remains in the country.
The defense counsel argued the prosecution did not provide evidence to prove Gambaryan would jump bail. He described the case as the government holding his client “state-sanctioned hostage” to leverage information from Binance. Gambaryan wants to prove his innocence at trial, according to his lawyer.
Justice Nwite deferred ruling on the bail to have time to consider arguments from both sides. In addition to EFCC’s money laundering case, Gambaryan and Binance also face criminal charges of tax evasion filed by the Federal Inland Revenue Service.
Nigeria has witnessed a challenging past concerning cryptocurrency, but it’s gradually overcoming its reputation tied to scams and Ponzi schemes. The crypto industry is now progressing towards becoming a regulated component of the financial sector. In late 2023, the central bank reversed its prohibition on banks facilitating accounts for crypto service providers, indicating a transition towards a more transparent and controlled approach. This development has been positively received by numerous crypto users within the local community, according to a report from the Crypto Council for Innovation.
Upon Gambaryan’s arrest in February, the CEO and Publisher of BlockTribune’s parent Judiciocracy LLC, Coach Edward Weinhaus, said that the increasing popularity of cryptocurrency in Nigeria reflects its populace’s desire for a currency more stable than their native Naira.
“Demand for crypto is a comment on a nation’s currency – don’t blame Binance for bitcoin’s existence,” said Weinhaus.
