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Nigeria has dropped money laundering charges against Binance’s Tigran Gamaryan following diplomatic pressure from the United States and legal agreements.
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Tigran Gamaryan was released after bail was denied due to health concerns, legal arguments and other factors.
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Despite Gambaryan’s release, Binance faces unresolved charges of tax evasion in Nigeria, as well as global regulatory challenges.
Tigran Gambaryan is now free after the Nigerian Government dropped charges of money laundering against him. Gambaryan was held since April and accused of laundering $34.4million. The Economic and Financial Crimes Commission made the announcement in Abuja, just days before the next scheduled hearing on October 25.
Gambaryan was cleared by the prosecution after they confirmed that he was not involved in Binance’s financial decisions. His release followed intense diplomatic efforts made by U.S. officials, lawmakers and other government officials who cited health issues.
EFCC Withdraws Charges Against Gambaryan
The EFCC lawyer announced the decision to drop all charges during a court hearing behind closed doors. The sudden move was made to avoid media scrutiny. The court denied Gambaryan bail twice before due to flight risks, but acknowledged that Gambaryan wasn’t responsible for the financial strategies of the company.
The defense team for Gambaryan argued that he shouldn’t be held responsible for Binance’s operations in general. Mark Mordi (a Senior Advocate of Nigeria, SAN) who represents Gambaryan, backed this position. The U.S. government and Nigerian government have made successful diplomatic efforts, which is reflected in the withdrawal of charges.
Gambaryan Released after Diplomatic Pressure
U.S. legislators, who pushed to have him released, brought the case to international attention. Diplomatic interventions were made with Nigerian and American officials. These efforts became stronger after bail was repeatedly denied based on inadequate health claims.
U.S. officials also expressed concern over Gambaryan’s treatment at the Kuje Correctional Centre where he has been detained since his arrest. The Nigerian court, however, refused to accept this and cited Gambaryan’s inability to prove that there were inadequate healthcare services at the correctional facility.
Bail applications denied despite health concerns
The legal team of Gambaryan submitted bail requests on the basis of his deteriorating physical condition, which was a major topic in the trial. The defense argued that Gambaryan’s continued detention without access to medical care violated his human rights. Despite these arguments the court rejected bail applications on both May 11 and Oct 11.
Judge Emeka Nwite determined that Gambaryan’s initial appeal against the denial of bail was an abuse in the judicial system during the hearing on October 11. The dismissal of the defense motion for bail was due to its failure to withdraw an appeal pending before filing a second motion.
Binance is still facing legal issues in Nigeria, even though Gambaryan’s lawsuit has been closed. The company is also involved in a separate case of tax evasion before another Federal High Court Judge. Nadeem Anjarwalla is also reported to have escaped from custody in March. This raises more questions about Binance’s activities in Nigeria.
Binance’s legal problems in Nigeria are part and parcel of increased global scrutiny on the crypto exchange. These cases demonstrate the regulatory efforts to manage cryptocurrency operations.
The sudden end of Gambaryan’s case is an important development in Nigeria’s regulatory actions against Binance. His release was a result of diplomatic pressure and legal arguments. Binance’s operations remain unclear in Nigeria. The company still has to address the tax evasion allegations as it strives to meet compliance challenges worldwide.
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