A Nigerian court on Friday issued a ruling in relation to Mr. Tigran Gambarian, CEO of Binance Nigeria, in a case of tax evasion and suspected money laundering.
Tigran Gambaryan, who holds American citizenship and serves as head of financial crimes compliance at Binance, faces four charges of tax evasion, as well as British-Kenyan citizen Nadeem Angarwala, the regional director of Binance Africa.
In addition to the tax evasion charges, Gambarian and Angarwala face charges of laundering more than $35 million and engaging in specialized financial activities without a license.
Despite these accusations, they both maintain their innocence on money laundering charges.
After the court hearing on Friday, lawyers for Binance and Gambarian declined to provide any comments.
Gambarian remains in detention, while Angarwala reportedly fled the country last March.
Nigerian authorities are working in cooperation with Interpol to locate and arrest Angarwala.
Reactions and repercussions:
The CEO of Binance criticized the actions of the Nigerian authorities, considering them to set a dangerous precedent.
The executives were initially invited to Nigeria in February for talks with authorities, but were later detained as part of a broad government crackdown on cryptocurrency companies.
Although Binance has not been directly charged in the tax evasion case, Nigeria's Federal Internal Revenue Service has indicated that Gambarian may face charges on behalf of the company.
Gambarian’s lawyer confirmed that he had no official role within Binance and was not given any instructions to represent the company in legal matters.
At the court hearing, Judge Emeka Noate decided that Gambarian should face the charges against Binance given his position as chief financial compliance officer and his appointment to represent the company during meetings in Nigeria.
Gambarian is scheduled to appear in court next Wednesday to enter a plea on behalf of Binance, however, his bail application submitted in relation to the money laundering case was rejected.
Nigerian authorities consider that cryptocurrency platforms, including Binance, have contributed to the national currency's problems, claiming that the trading of the Nigerian naira has been affected by the country's ongoing dollar shortage.
