Tigran Gambaryan, a U.S. citizen and Binance’s head of financial crime compliance, and Nadeem Anjarwalla, a British-Kenyan who is Binance’s regional manager for Africa, flew to Nigeria following the country’s decision to ban several cryptocurrency trading websites and were detained on arrival on February 26.
Two executives from Binance, the world’s largest cryptocurrency exchange, will remain in detention for at least two more weeks in Nigeria after appearing in court for the first time on Wednesday even though they have not been charged with a crime.
Tigran Gambaryan, a U.S. citizen and Binance’s head of financial crime compliance, and Nadeem Anjarwalla, a British-Kenyan who is Binance’s regional manager for Africa, flew to Nigeria following the country’s decision to ban several cryptocurrency trading websites and were detained on arrival on February 26.
Reuters reports that on Tuesday, the two men appeared in a Federal High Court in Abuja. The Court and lawyers for Gambaryan and Anjarwalla declined to comment.
Lawyers from the Economic and Financial Crimes Commission (EFCC) want the court to grant a new detention order after the initial one expired on March 12. The Binance executives are opposing this.
The judge did not make a ruling on EFCC’s request.
According to Reuters, the families of the detained executives in a statement on Wednesday said after hearing arguments from both parties the court ruled that they would resume hearing on April 5th.
“At the court hearing in Abuja today, which was attended by Tigran and Nadeem, the court ruled that after hearing arguments from both parties, they would resume the session on April 5th,” the families of the two executives said in a statement.
An EFCC spokesperson did not respond to a request for comment.
Gambaryan and Anjarwalla were caught up in a crackdown following a period during which several cryptocurrency websites emerged as platforms of choice for trading the Nigerian currency, as the country battles chronic dollar shortages.
Binance did not immediately respond to emailed questions.
The company announced early this month that it was stopping all transactions and trading in Nigeria’s naira currency after March 8.
In a related development, SaharaReporters reported on Monday that a Federal High Court in Abuja had ordered Binance Holdings Limited to provide information on all persons trading on the platform from Nigeria to the EFCC.
According to the News Agency of Nigeria, Justice Emeka Nwite granted the interim order after ruling on the ex parte motion moved by the lawyer representing the anti-corruption body, Ekele Iheanacho.
“The applicant’s application dated and filed 29th February, 2024, is hereby granted as prayed. That an order of this honourable court is hereby made directing the operators of Binance to provide the commission with comprehensive data/information relating to all persons from Nigeria trading on its platform,” the judge ordered.
The interim order enabled the anti-graft agency to unravel the alleged money laundering and terrorism financing on Binance, a cryptocurrency exchange platform.
The ex parte motion marked FHC/ABJ/CS/259/2024 was brought pursuant to Sections 6(b), (h), (I), 7(1), (a)(2), and 38 of the Economic and Financial Crimes Establishment Act, 2004 and Section 15 of the Money Laundering (Prevention and Prohibition) Act, 2022 (as amended) and the inherent powers of the court.
In the affidavit in support of the motion deposed to by Hamma Bello, an operative of the EFCC, he said he was attached to the Special Investigation Team (SIT) of the commission domiciled in the Office of the National Security Adviser (ONSA).
Mr Bello noted that following the inauguration of the Technical Committee on Currency Stability and Forex Manipulation by the ONSA, the SIT “received an intelligence stating the nefarious activities (money laundering and terrorism financing) on Binance,” a cryptocurrency exchange platform.
Mr Bello added that upon receipt of the intelligence, the team began investigating by carrying out surveillance of the activities of the platform.
He stated, “The team uncovered users who have been using the platform for price discovery, confirmation, and market manipulation, which has caused tremendous distortions in the market, resulting in the Naira losing its values against other currencies.
“That the damage the platform has caused was clearly explained to the operators of the platform and they were requested to delist the Naira and avail the ONSA on the activities of the Nigerians on their platform.
“That from the information afforded to the team by Binance shows that the total trading volume from Nigeria in 2023 alone stood at $21.6 million.
“Attached and marked as Exhibit EFCC 1 is a copy of the document from Binance to the ONSA stating this fact amongst others. That the commission will ensure that investigation is conducted within such reasonable time.”
Mr Bello, who said the matter was of utmost urgent public interest, said the data provided would enable the commission to accomplish its investigation activities.
He said it was in the interest of justice to grant the application, as refusing the request would largely hamper the commission’s investigation.
It was reported last week that the Nigerian Government had pleaded before a chief magistrate’s court in Abuja to extend the detention of two Binance executives arrested by the country’s National Security Adviser.
The Binance executives identified as Tigran Gambaryan, a U.S. citizen and Binance’s head of financial crime compliance, and Nadeem Anjarwalla, a British-Kenyan who is African regional manager for the cryptocurrency trading firm, flew to Nigeria following the country’s decision to ban several cryptocurrency trading websites, but they were detained on arrival on February 26.
