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Tigran Gambaryan, an executive of Binance Holdings Limited, has been remanded in the Kuje Correctional Centre by the Federal High Court in Abuja (Few weeks ago he sued Nigeria’s National Security Adviser (NSA)), pending the determination of his bail application. The court’s decision came after Gambaryan pleaded not guilty to money laundering charges brought against him by the Economic and Financial Crimes Commission (EFCC) on Monday, April 9th, 2024.

The EFCC has accused Binance, Gambaryan, and his colleague Nadeem Anjarwalla, who is currently at large, of concealing the source of $35.4 million generated as revenue by Binance in Nigeria, knowing that the funds were proceeds of unlawful activity.

The arraignment of Binance Holdings Limited and Tigran Gambaryan had been stalled on April 4th due to an objection raised by Gambaryan’s counsel, Mark Mordi (SAN). Mordi argued that his client could not be arraigned because the EFCC had failed to properly serve the charge sheet on Binance Holdings Limited. However, the EFCC’s counsel, E.E. Iheanacho, countered that the charge was served on Gambaryan as a representative of Binance in the country, but it was rejected.

Justice Emeka Nwite ruled that the service on Gambaryan on behalf of the company was proper, citing Section 478 of the Administration of Criminal Justice Act, which stipulates that service must be effected on a chief agent of a company within the jurisdiction. The judge noted that an affidavit deposed by Gambaryan’s lawyer claimed that his client and Anjarwalla had traveled to Nigeria to attend a meeting with Nigerian government officials on behalf of Binance.

Following the ruling, the charges were read to Gambaryan, who pleaded not guilty on behalf of himself and Binance. The prosecution counsel requested a date for the commencement of the trial, while Gambaryan’s lawyer pleaded with the court to grant his client’s bail application, citing that Gambaryan had been in custody for 40 days.

The judge adjourned the matter until April 18th for a ruling on Gambaryan’s bail application and set May 2nd as the date for the commencement of the trial. In the meantime, Gambaryan will remain in the Kuje Correctional Centre.

The case has drawn attention to the growing scrutiny of cryptocurrency exchanges by regulatory authorities worldwide, as concerns mount over the potential use of digital assets for illicit activities such as money laundering and terrorism financing.