Binance Executive Stuck in Nigeria as Bail Denied in Money Laundering Case

Story Highlights

• Nigerian court denies bail to Binance executive Tigran Gambaryan on money laundering charges.
• Gambaryan’s arrest highlights the growing tension between Binance and Nigerian authorities regarding over-regulation and alleged financial crimes.
• Denied bail and facing legal battles, Binance’s future operations in Nigeria remain unclear.

A Nigerian court has denied bail to Tigran Gambaryan, a senior executive at cryptocurrency giant Binance, citing concerns he might flee the country. Gambaryan, a former U.S. tax agent who now serves as Its’s chief compliance officer, has been detained in Nigeria for over two months on charges of money laundering and tax evasion.

Caught in the Middle of Regulatory Storm

Gambaryan’s arrest, along with his colleague Nadeem Anjarwalla, came amidst heightened scrutiny by Nigerian authorities towards cryptocurrency businesses. The Economic and Financial Crimes Commission (EFCC) accused the company of laundering over $35 million through its platform. Additionally, Nigeria’s tax authority alleged the company failed to register for remittance purposes and demanded data on prominent users.

Escape and Escalation

Anjarwalla, a British-Kenyan national, escaped custody in March and is reportedly in Kenya awaiting extradition. This incident further strained relations between Binance and Nigerian authorities. the company officials accused Nigerian officials of demanding a $150 million bribe in crypto during prior talks, a claim vehemently denied by Nigerian politicians. Both sides accused each other of “sophisticated criminality” – Binance for aiding Anjarwalla’s escape, and Nigerian officials for attempting to extort the company.

With Gambaryan’s denied bail request and the ongoing legal battle, Binance’s future in Nigeria remains uncertain. The platform enjoys significant popularity among young Nigerians seeking alternatives to traditional financial institutions due to the fluctuating naira. However, Nigerian officials believe cryptocurrency trading contributes to the naira’s instability, potentially leading to further regulatory actions.