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Nigerian court rules Binance executive can be tried on behalf of cryptocurrency exchange
By Camillus Eboh
ABUJA (Reuters) – A Nigerian court ruled on Friday that Binance executive Tigran Gambaryan can be tried on behalf of the cryptocurrency exchange in an ongoing tax evasion case.
Binance and its executives Gambaryan, a U.S. citizen and financial crimes compliance officer, and Nadeem Anjarwalla, a British national of Kenyan origin, regional director for Africa, face four counts of tax evasion.
In a separate case, they were also charged with laundering more than $35 million and engaging in unlicensed specialized financial activities. They have all pleaded not guilty to the money laundering charges.
Binance’s lawyer declined to comment on Friday’s hearing. Gambaryan’s lawyer also declined to comment.
“We are deeply disappointed that Tigran Gambaryan, who has no decision-making authority within the company, continues to be detained,” a Binance spokesperson said in a statement Friday after the court hearing.
“These accusations against him are completely unfounded. He should be released while discussions continue between Binance and Nigerian government officials.”
Gambaryan remains in custody while Anjarwalla fled the country in March. Nigeria’s office of the security adviser said it was working with Interpol to secure Anjarwalla’s arrest.
Binance CEO accused Nigeria of setting a dangerous precedent after its executives were invited to the African country in February for talks with authorities and then detained as part of a crackdown on crypto.
Binance itself has not been charged in the tax evasion case by Nigeria’s Federal Inland Revenue Service (FIRS), which said Gambaryan could face the charges on behalf of the exchange.
Gambaryan’s lawyer previously said that Gambaryan was “neither a director, nor a partner, nor a company secretary” and that he had received no written instructions from Binance to face the charges on his behalf.
Judge Emeka Nwite ruled on Friday that Gambaryan should be charged with Binance because he is Binance’s director of financial compliance and was duly appointed to represent it at a meeting in Nigeria.
Gambaryan will be arraigned in court on Wednesday to plead on behalf of Binance.
Gambaryan’s bail request in the money laundering case was rejected on Friday.
Nigeria has blamed Binance for its foreign exchange woes after cryptocurrency websites became the go-to platforms for trading the Nigerian naira currency as the country grapples with a chronic dollar shortage.
(Reporting by Camillus Eboh; writing by Elisha Bala-Gbogbo and Chijioke Ohuocha; editing by Jane Merriman)