Tigran Gambaryan, a detained executive of the cryptocurrency exchange platform Binance, collapsed before the Federal High Court in Abuja during his trial for foreign exchange contravention and money laundering. The case, brought against him by the Economic and Financial Crimes Commission (EFCC), saw Gambaryan’s health deteriorate since the last court appearance, his lawyer revealed.

Gambaryan’s counsel, Mark Mordi (SAN), informed Justice Emeka Nwite that his client had been unwell, presenting a letter outlining Gambaryan’s medical conditions. As the session commenced, Gambaryan was assisted to the dock but soon slumped, prompting Mordi to request an adjournment for medical attention. The EFCC’s counsel, Ekele Iheanacho, did not oppose the adjournment request. Consequently, the court rescheduled the cross-examination and trial to June 20 and 21.

The trial follows accusations from the Nigerian government that Binance and its executives, including the now-absconding Nadeem Anjarwalla, conspired to obscure the origins of $35.4 million in alleged unlawful financial proceeds. This action reportedly breached Section 21 (a) and is punishable under Section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022.

A prior hearing featured testimony from Abdulkadir Abbas, the Director of Exchanges and Market Infrastructure at the Securities and Exchange Commission (SEC). Abbas asserted that Binance’s Naira peer-to-peer (P2P) feature significantly devalued the Nigerian currency due to its extensive use by the platform’s large user base.

The SEC, a federal agency, oversees the registration of market stakeholders and trading instruments, enforces regulations, and monitors the market. Its role in the case underscores the regulatory body’s concerns about the impact of cryptocurrency exchanges on Nigeria’s financial stability.

The ongoing legal battles include separate suits by the Federal Inland Revenue Service (FIRS) concerning tax evasion and the EFCC’s current focus on money laundering and forex contravention. Additionally, Binance executives have filed a fundamental rights case against Nigerian government agencies, claiming violations of their constitutional rights.

Gambaryan, 39, an American head of financial crime compliance at Binance, and Anjarwalla, 37, a British-Kenyan regional manager for Africa, were both detained on February 28 by Nigerian authorities. Anjarwalla’s current whereabouts remain unknown.

Credit: Nairametrics