The Economic and Financial Crimes Commission (EFCC) encountered a setback in its attempt to prosecute Binance Ltd, Tigran Gambaryan, and Nadeem Anjarwalla before the Federal High Court, Abuja, in a suit marked FHC/ABJ/CR/138/2024.
The planned arraignment on Thursday was disrupted following strong objections from Gambaryan’s legal team, which asserted that he is not an agent of Binance.
Today, April 4, 2024, was scheduled for the trio to enter their pleas in separate suits filed by the Federal Inland Revenue Service (FIRS) and the EFCC.
The EFCC accused the defendants of money laundering and contravening foreign exchange regulations amounting to $35,400,000.
In the charge sheet obtained by Nairametrics, the EFCC alleged that the defendants concealed the origin of $35,400,000 generated as revenue by BINANCE in Nigeria, knowing that the funds constituted proceeds of unlawful activities.
Court Proceedings:
During Thursday’s court session, Gambaryan’s lawyer, Mark Mordi SAN, argued that his client could not plead because he had refused to accept service on behalf of Binance, as the company did not authorize him to do so.
According to Mordi, the Administration of Criminal Justice Act (ACJA) mandates the antigraft agency to ensure that Binance would be served, after which the company would appoint a representative in writing.
He emphasized that Gambaryan was not an executive of Binance and did not reside in Nigeria to qualify as an agent.
Furthermore, Mordi stated, “The first defendant (Binance) has no physical footprint in Nigeria and does not have an agent in the country.”
EFCC’s Response:
Contrary to Mordi’s assertion, EFCC counsel Ekene Iheanacho maintained that although Binance had no physical presence in Nigeria, Gambaryan served as the country’s cryptocurrency platform’s agent.
Iheanacho argued that Gambaryan was the sole agent of Binance in Nigeria and qualified as an agent.
Adjournment and Ruling:
Justice Emeka Nwite announced that given the arguments on the possibility of arraigning Gambaryan by EFCC, he would adjourn for a ruling.
“The ruling is slated for April 8. If it favors the EFCC, the defendant will plead immediately,” the judge stated.
Additionally, the court ordered that the defendant be remanded at the EFCC custody from where he was brought to the court.
Additional Insights:
Binance and its executives face two separate suits from the FIRS and EFCC. The former pertains to tax evasion, while the latter accuses them of money laundering and foreign exchange contravention.
The executives have also filed a fundamental rights case against Nigerian government agencies, alleging a violation of their constitutional right to liberty.
On February 28, Nigerian authorities detained Nadeem Anjarwalla and Tigran Gambaryan following the federal government’s ban on cryptocurrency channels. Anjarwalla subsequently fled the country, as the NSA confirmed.
The Naira has undergone significant devaluation, losing 70% of its value against the dollar since implementing foreign exchange reforms last year, exacerbated by a shortage of dollars locally.
