Mohammed Idris, the Nigerian Minister of Information, has stated that the legal proceedings against Binance and its executive, Tigran Gambaryan, for engaging in illegal cryptocurrency trading in Nigeria are in accordance with the country’s legal processes. He emphasized that the prosecution has been thorough and based on solid evidence.
Idris mentioned that Binance will be given the opportunity to defend itself against the serious financial crime charges during the upcoming court hearing scheduled for June 20, 2024. Despite this, there have been calls from 12 U.S. politicians urging President Joe Biden to intervene and secure the release of Gambaryan, whom they believe is being unfairly targeted by Nigerian authorities.
In response to the concerns raised, the minister reassured that Binance has been provided with consular access and treated with the necessary care, in compliance with diplomatic norms and legal standards. The decision to deny bail was attributed to the high risk of the defendant fleeing the country, especially after a co-defendant escaped and became the subject of an Interpol arrest warrant.
Binance is currently facing legal challenges from both the Federal Inland Revenue Service for tax evasion and the Economic and Financial Crimes Commission for money laundering and foreign exchange violations. The arrest of Gambaryan and Nadeem Anjarwalla in February on suspicion of financial crimes highlighted the government’s crackdown on cryptocurrency activities to prevent currency speculation.
Anjarwalla managed to evade custody and flee to Kenya, while Gambaryan remains in detention at the Kuje correctional center in Abuja. As part of the legal process, the court has mandated Binance to provide the Nigerian government with access to data and information on Nigerian traders using its platform.
As the cryptocurrency industry faces increasing scrutiny, the question arises of how much regulation and enforcement is necessary to maintain market integrity.