Tensions continue to rise between the Nigerian government and cryptocurrency exchange Binance as a Federal High Court in Abuja has adjourned the hearing for the detained Binance executive, Tigran Gambaryan, for the fourth consecutive time. Consequently, Gambaryan, who has been in detention for more than 40 days, will remain in the custody of Nigerian regulatory authorities, raising concerns about the possibility of securing bail in the near future.
During the most recent court hearing on April 8, Gambaryan pleaded not guilty to the money laundering and tax evasion charges levied against him by the Nigerian Economic and Financial Crime Commission (EFCC). The charges are part of ongoing investigations by the Nigerian government into Binance’s operations within the country, which allegedly led to the devaluation of the naira, the Nigerian currency.
Presiding Judge Rules in Favor of Continued Detention
Gambaryan’s lawyer argued that his client should not be held responsible for Binance’s activities in Nigeria, as he has no decision-making authority within the company. However, Justice Nwite, the presiding judge, cited local laws that allow for the prosecution of company executives on behalf of the companies they represent, in accordance with section 478 of the Nigerian constitution.
The judge further adjourned the matter until April 18 for a ruling on Gambaryan’s application for bail and May 2 for the commencement of the trial. In a twist that could worsen Gambaryan’s situation, the presiding attorney ordered that he be remanded at Kuje Prison in Abuja until the case concludes, despite his lawyer’s request to return him to EFCC custody.
Chances of Securing Bail Diminish
Following the court’s postponement verdict and the decision to move Gambaryan from EFCC custody to Kuje’s correctional center, the prevailing atmosphere between the parties involved appears to be taking an ugly turn, potentially reducing the chances of securing bail in the near future.
All eyes will be on the judiciary on April 18 as they entertain Gambaryan’s bail application. However, even if he gains freedom, the detained executive will still be answerable to the charges levied against him, with the trial set to begin on May 2. The anticipated court probe implies that he could still face a specified jail term or other penalties, depending on the court’s final ruling.
The case has drawn international attention to the regulatory challenges faced by cryptocurrency exchanges operating in Nigeria and highlights the need for clearer guidelines and cooperation between the industry and government authorities.
