In a shocking turn of events, the Nigerian government has dropped all money laundering charges against Tigran Gambaryan, a top executive of Binance Holdings, the world’s largest cryptocurrency exchange. The decision comes after Gambaryan had been facing trial since April, with the Economic and Financial Crimes Commission (EFCC) prosecuting him on five counts of money laundering and currency speculation involving $34.4 million.
Background of the Case
Gambaryan’s ordeal began in April when he was arrested by the EFCC, Nigeria’s anti-graft agency, on allegations of money laundering and currency speculation. The EFCC claimed that Gambaryan had facilitated the laundering of $34.4 million through Binance’s Nigerian operations. The agency also accused him of violating Nigeria’s foreign exchange regulations.
Diplomatic Intervention
Sources close to the matter reveal that the US government had been involved in diplomatic efforts to secure Gambaryan’s release. The US Department of State had been in talks with Nigerian authorities, expressing concerns about the fairness of the trial and the potential implications for US-Nigeria relations.
Health Concerns
Gambaryan’s lawyer, Mark Mordi, had repeatedly raised concerns about his client’s deteriorating health while in custody. Mordi argued that Gambaryan’s continued detention was exacerbating his health issues, which included hypertension and diabetes.
EFCC’s Stance
Ekene Iheanacho, counsel to the EFCC, confirmed that the charges were dropped due to “diplomatic issues” and Gambaryan’s health concerns. Iheanacho stated that the EFCC had received instructions from the Attorney General of the Federation to discontinue the case.
Implications
The dropping of charges against Gambaryan has significant implications for Binance’s operations in Nigeria and the broader cryptocurrency industry. The case raised concerns about the regulatory environment in Nigeria and the risks faced by cryptocurrency exchanges operating in the country.
Reaction from Binance
Binance has welcomed the decision, stating that it is “pleased that the Nigerian government has dropped all charges against Tigran Gambaryan.” A spokesperson for the company added that “Binance remains committed to operating in full compliance with all applicable laws and regulations in Nigeria and globally.”
Industry Reaction
Cryptocurrency industry stakeholders have hailed the decision as a positive development for the sector. “This is a welcome relief for the cryptocurrency industry in Nigeria,” said Adedeji Owonibi, CEO of Nigerian blockchain company, Convexity. “It shows that the government is willing to engage with the industry and resolve issues through dialogue.”
The dropping of charges against Gambaryan brings an end to a contentious trial that had sparked international attention. The decision highlights the complexities of cryptocurrency regulation in Nigeria and the need for clearer guidelines for operators. As the cryptocurrency industry continues to evolve, regulators and operators must work together to ensure a safe and compliant environment for all stakeholders.