The Federal High Court, Abuja, on Friday, dismissed the bail application of a detained Binance executive, Tigran Gambaryan, following the Federal Government’s opposition.
M. Mordi, Gambaryan’s lawyer, requested an order admitting his client to bail until the hearing and determination of the Economic and Financial Crimes Commission’s (EFCC) money laundering case against him.
Justice Emeka Nwite scheduled a ruling and trial for today after Gambaryan (via his legal team) and the Nigerian government’s lawyers battled over the former’s plea to be released from the Kuje Correctional Centre after more than 40 days in captivity.
The trial judge had remanded the Binance agent after he pleaded not guilty to the money laundering charges preferred against him by the EFCC.
The Nigerian government, through the EFCC, had accused Binance, Gambaryan, and fleeing Nadeem Anjarwalla, of allegedly conspiring amongst themselves to conceal the origin of the financial proceeds of their alleged unlawful activities in Nigeria, including $35,400, 000, thereby committing an offense contrary to Section 21 (a) and punishable under Section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022.
But EFCC’s counsel, E. Iheanacho, said the court would be taking a grave risk by granting the Binance executive bail because he has no attachment to any community in Nigeria or competent person to stand as his surety.
He had contended that Gambaryan attempted to apply for a new United States passport, knowing full well his International passport was seized by the Nigerian state.
In the alternative, the EFCC advised the court to return the applicant to EFCC custody pending the end of the trial.
Meanwhile, Gambaryan’s lawyer, Mordi, submitted that his client has no record of jumping bail warranting the court to decline his request.
Ruling on the bail application on Friday, Justice Nwite held that a defendant charged with a criminal offence with a penalty of three-year-sentence and above is entitled to bail except where there are proofs of an attempt to conceal evidence, interfere with the trial, among others.
Nwite said from the affidavit evidence tendered by the Binance official, he had admitted coming to Nigeria to hold meetings with Nigerian government officials on behalf of Binance.
Nwite also observed that the EFCC submitted that the Nigerian government, through intelligence, became aware that the Binance company helped in foreign exchange contravention while affecting the value of the Naira.
The judge also observed that Nadeem, Gambaryan’s colleague, had escaped from lawful custody.
Nwite said he was of the view that the applicant would jump bail, adding “consequently the application is hereby refused.”
Binance and its executives are faced with two separate suits by the Federal Inland Revenue Service (FIRS) and EFCC; the former bordering on tax evasion while the latter on money laundering and foreign exchange contravention.
Nairametrics recalls that the executives have also instituted a fundamental rights case against agencies of the Nigerian government, citing a violation of their constitutional right to liberty.
On February 28, Nigerian authorities detained two senior Binance executives: Nadeem Anjarwalla, a 37-year-old British-Kenyan who serves as the regional manager for Africa, and Tigran Gambaryan, a 39-year-old American who is the head of financial crime compliance at Binance.
Following the Federal Government’s ban on cryptocurrency channels as part of a campaign against currency speculation, the Binance executives visited Nigeria for a meeting.
The Naira had experienced a significant devaluation of its currency, with it losing 70% of its value against the dollar since the foreign exchange reforms were implemented last year, a situation worsened by a shortage of dollars locally.
The National Security Advisor (NSA) later confirmed that Nadeem had fled the country but multiple news sources say he has been apprehended in Kenya.