Nigeria stands firm on prosecuting Binance executive despite US lawmakers disapproval

The Minister of Information in Nigeria, Mohammed Idris, affirmed that the legal proceedings against Binance and its executive, Tigran Gambaryan, for engaging in unlawful cryptocurrency trading in Nigeria are being carried out in accordance with the country’s legal procedures.
In a statement, Idris emphasized that the legal process has been meticulously followed at each stage, and prosecutors are confident in their case based on the evidence collected. He mentioned that Binance will be given the opportunity to present its defense against the serious financial crime charges in court, with the next hearing scheduled for June 20, 2024.
A group of 12 United States politicians recently appealed to President Joe Biden, urging the U.S. government to intervene through its hostage affairs unit to secure the release of Gambaryan. The politicians highlighted that the charges against Gambaryan, including money laundering and tax evasion, are unfounded and may be a ploy by Nigerian authorities to extort Binance.
Despite the accusations, the minister assured that Binance has been granted proper consular access from the U.S. and has been treated in accordance with standard diplomatic practices and legal principles. The denial of bail was attributed to Gambaryan’s high risk of flight, particularly as a co-defendant who is now the subject of an Interpol arrest warrant had fled the country illegally.
Binance and its executives are currently facing legal challenges from both the Federal Inland Revenue Service and the Economic and Financial Crimes Commission in Nigeria. The former case pertains to tax evasion while the latter involves allegations of money laundering and violations of foreign exchange regulations.
In February, Gambaryan, a U.S. citizen, and Nadeem Anjarwalla were arrested by the Nigerian government on suspicion of money laundering and tax evasion. While Anjarwalla managed to evade custody and escape to Kenya, Gambaryan remains detained at the Kuje correctional center in Abuja, Nigeria.
The arrests took place following the government’s decision to ban cryptocurrency transactions as part of efforts to control currency speculation. The court has ordered Binance to provide the Nigerian government with access to data and information on Nigerian traders using its platform.
In a related context, the question arises: How far should enforcement actions go to regulate the cryptocurrency industry?