In the ongoing money laundering trial at Nigeria’s Federal High Court in Abuja, Binance’s compliance executive Tigran Gambaryan continues to battle severe health issues, complicating the proceedings. The trial, marked by interruptions and delays, saw Gambaryan’s defense team rigorously cross-examining government officials this week, reported Osato Avan-Nomayo out of the courtroom.
Struggling with Illness
Visibly unwell, Tigran Gambaryan, who has been grappling with malaria and pneumonia, appeared in court wearing a black T-shirt and grey trousers. His frail condition necessitated frequent support from the dock to prevent collapsing, as he had during an earlier court session in May.
Money Laundering Allegations
Gambaryan, heading Binance’s financial crime compliance in the US, faces a $35 million money laundering charge from Nigeria’s Economic and Financial Crimes Commission (EFCC). He has pled not guilty, with his defense characterizing the case as “state-sponsored hostage taking.” His dire health in custody prompted calls for his release from US lawmakers in June.
Binance, also charged with money laundering, denies all allegations. The legal battle stems from a conflict between Binance, which lacks a Nigerian operating license, and Nigerian authorities.
Court Proceedings
On Monday, defense lawyers interrogated the EFCC’s first witness, Abdulkadir Abbas, director at Nigeria’s Securities and Exchange Commission (SEC). Binance’s lawyer, Babatunde Fagbohunlu, probed Abbas on the regulatory landscape for crypto firms like Binance in Nigeria. Abbas maintained that the SEC’s lack of explicit crypto regulations didn’t justify Binance’s unlicensed operations.
When pressed about Binance’s unsuccessful attempts to register with the SEC, Abbas sidestepped, but he did confirm allegations of Binance manipulating Nigeria’s forex market through its P2P trading platform.
Focus on Decision-Making
Mark Mordi, Gambaryan’s lawyer, concentrated on clarifying his client’s role at Binance. Through cross-examination, Mordi established that Gambaryan, a cybercrime investigator, was not involved in the company’s operational decisions. Despite attempts to evade, Abbas admitted Gambaryan’s limited role in Binance’s decision-making processes.
Health and Judicial Response
Contrary to government claims of fair treatment, Gambaryan’s health visibly deteriorated in court. This prompted Justice Emeka Nwite to demand the prosecution release Gambaryan’s medical test results by Friday. Previously, Justice Nwite had ordered Gambaryan’s hospitalization, an order that Nigerian officials delayed for nearly two weeks.
Yuki Gambaryan, his wife, expressed her anguish over her husband’s deteriorating condition and criticized the Nigerian government for neglect. The trial is adjourned until July 5.
Implications for Crypto Regulation
The Gambaryan case underscores significant challenges in crypto regulation and enforcement. The absence of clear regulatory frameworks in countries like Nigeria creates a contentious environment for international crypto firms. This trial highlights the necessity for comprehensive and clear-cut regulations to govern the burgeoning crypto sector effectively.
