Binance Executive Released from Nigerian Custody After Charges Dropped

Key Takeaways

• A spokesperson for the Nigerian government, stated that Gambaryan’s release was essential for him to receive medical care
• Gambaryan is expected to return to the United States shortly

Tigran Gambaryan, a former Binance executive, has been released from Nigerian custody after spending eight months detained in connection with a money laundering case tied to Binance. His release was confirmed by Nigerian officials on Wednesday, with Gambaryan expected to return to the United States shortly.

Gambaryan, 31, was arrested in February while working for Binance and he faced serious charges, including money laundering and tax evasion, amid a broader inquiry into the company’s operations in Nigeria. According to reports, his health had severely declined during his time in custody, leading Nigerian authorities to state that he required urgent medical treatment outside the country.

Dele Oyewale, a spokesperson for the Nigerian government, explained that Gambaryan’s release was essential for him to receive medical care, citing his “worsening health condition.” During his detention, he contracted malaria and suffered from double pneumonia and a herniated disk, which raised significant concerns about his well-being.

Initially, Gambaryan was held at a government guesthouse but was later transferred to Kuje Prison, notorious for its harsh conditions. Despite his deteriorating health, Gambaryan’s requests for bail to seek medical treatment were denied twice. The case had become a diplomatic point of contention between the United States and Nigeria, with American officials urging the Nigerian government to release him.

In recent developments, Gambaryan was absent from a scheduled court hearing last week due to illness. However, on Wednesday, prosecutors unexpectedly withdrew the charges during a court session that did not provide public notice. R.U. Adaba, a lawyer representing Nigeria’s Economic and Financial Crimes Commission, asserted that Gambaryan was merely an employee of Binance and had no direct involvement in any alleged wrongdoing by the company.

Gambaryan’s arrest occurred shortly after he and another Binance executive, Nadeem Anjarwalla, arrived in Nigeria in February to discuss the exchange’s activities. The executives were arrested in late February after the Central Bank of Nigeria alleged “suspicious flows” of funds through Binance Nigeria in 2023. While Anjarwalla managed to escape detention in March, Gambaryan’s legal troubles intensified. Following the dropping of charges against him, Binance remains under scrutiny, facing separate allegations of tax evasion in Nigeria, which the company continues to deny.

Nigeria has had a tumultuous relationship with crypto so far. In February 2021, CBN barred financial institutions from handling crypto-asset transactions. However, a circular issued on December 22, 2023, permitted certain virtual asset service provider (VASP) activities related to cryptocurrencies and crypto assets, subject to new guidelines.

In May 2024, Nigerian fintech platforms warned users against using their accounts for crypto transactions, threatening heavy sanctions amid the country’s ongoing efforts to regulate cryptocurrency.