By Abiola Olawale
The Federal High Court in Abuja on Friday, May 17, 2024, declined to grant the bail application of a top official of Binance Holdings Limited, Tigran Gambaryan, who is in prison custody in Nigeria.
The court, in the ruling delivered by Justice Emeka Nwite, held it was not convinced that the defendant, who is facing trial on a five-count money laundering and terrorism financing charge, alongside the company, would not jump bail if granted.
Mr Gambaryan, through his legal counsel, Mark Mordi (SAN), had filed a bail application on April 4. The defendant relied on the provisions of sections 157 and 162 of the Administration of Criminal Justice Act (ACJA), 2015, to make his bail plea.
Arguing the bail application, Mordi, contended that the charge the Economic and Financial Crime Commission (EFCC) preferred against his client is a bailable offence. He also argued that his client, under the 1999 Constitution of Nigeria (as amended), is presumed innocent of the allegations against him.
The legal luminary argued that, “the prosecution has not presented any credible evidence to establish why the defendant should not be granted bail.”
“My client is anxious, and very desirous to prove his Innocence. This whole thing is that they (EFCC) want to use the defendant as leverage to obtain information from his employer. That is basically what this case is all about,” he said.
“This is purely a state-sanctioned hostage-taking,” the defence counsel added, and prayed the court to grant the defendant bail and stipulate conditions that would ensure his attendance at his trial.
However, the EFCC, in its argument, urged the court to allow the Binance official to remain in Kuje prison, Abuja.
The anti-graft agency maintained that it got reliable intelligence that plans were afoot for the defendant to escape from custody and flee the country like his colleague, Mr Anjarwalla, did.
In its argument, led by Ekele Iheanacho (SAN), the EFCC said: “There was an attempt by this defendant to procure another travelling document even when he was aware that his passport was in the custody of the state. He pretended as if the said passport was stolen.
“My Lord, he made the move within the same period that his colleague escaped from custody and fled the country.
“If not that operatives of the Commission intercepted him, that act would have been completed.
“This court will be taking a grave risk to grant the defendant bail. This is also because he has no attachment to any community in Nigeria.
“The fact that the passport of the defendant is with the complainant does not also guarantee that he will remain in Nigeria. He is not only an American citizen, he was born in Armenia and has citizenship by birth.
“The experience we have had with the man who escaped to Kenya, while his United Kingdom passport is in Nigeria, will certainly repeat itself if this defendant is granted bail.
“Because of information we have received, we have even proposed that the defendant be returned to EFCC custody where he will be taken good care of, instead of the prison. It was an option we initially opposed.
“The 1st defendant (Binance) is operating virtually. The only thing we have to hold on to is this defendant. So, we pray, my Lord, to refuse bail to the defendant.”
After listening to the arguments from both parties, the court held that the defendant failed to present sufficient materials to prove that he would not jump bail.
Justice Nwite held that based on affidavit evidence that was adduced by the EFCC, there is a likelihood that the defendant may jump bail.
Consequently, it dismissed the defendant’s application to be granted bail, pending the determination of the case against him.
The New Diplomat reports that the EFCC had filed five-count charge, bordering on alleged tax evasion, money laundering, and others against the cryptocurrency giant and two of its executives, Anjarwalla and Gambaryan.
The court documents reveal that the charges were filed on Thursday, March 28, 2024, before the Federal High Court, Abuja division.
The charges read: “That you, Binance Holdings Limited (aka Binance), Tigran Gambaryan, and Nadeem Anjarwalla (now at large), between January 2023 and January 2024 in Abuja, within the jurisdiction of this Honourable Court, carried on specialised business of other financial institution without valid licence, and thereby committed an offence contrary to section 57(1) and (2) of the Banks and Other Financial, Institutions Act, 2020, and punishable under section 57(5) of the same Act.
“Count two, that you, Binance Holdings Limited (aka Binance), Tigran Gambaryan, and Nadeem Anjarwalla (now at large), between January 2022 and January 2024 in Abuja, within the jurisdiction of this Honourable Court, engaged in business of other financial institution (other than insurance, stock broking and pension fund management) without a valid licence, and thereby committed an offence contrary to and punishable under section 58(5) of the Banks and Other Financial Institutions Act, 2020.
“Count three, that you, Binance Holdings Limited (aka Binance), between January 2022 and January 2024 in Abuja, within the jurisdiction of this Honourable Court, not being an authorised dealer in Nigeria’s Autonomous Foreign Exchange Market, used your virtual asset services platform to unlawfully negotiate foreign exchange rates in Nigeria, and you thereby committed an offence contrary to and punishable under section 29(1)(c) of the Foreign Exchange (Monitoring And Miscellaneous Provisions) Act.
“Count four, that you, Binance Holdings Limited (aka Binance), Tigran Gambaryan, Nadeem Anjarwalla (now at large), and other persons at large, between January 2023 and January 2024 in Abuja, within the jurisdiction of this Honourable Court, conspired amongst yourselves to conceal the origin of the proceeds of your unlawful activities, and thereby committed an offence contrary to section 21(a) and punishable under section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022.
“Count five, that you, Binance Holdings Limited (“aka Binance”), Tigran Gambaryan, and Nadeem Anjarwalla, between January 2023 and December 2023 in Abuja, within the jurisdiction of this Honourable Court, concealed the origin of a cumulative sum of $35,400,000 generated as revenue by Binance in Nigeria, knowing that the funds constituted proceeds of unlawful activity, and you thereby committed an offence contrary to and punishable under section 18(3) of the Money Laundering (Prevention and prohibition) Act, 2022.”
Also on March 22, the Nigerian government approached the Federal High Court in Abuja and slammed another four-count charge on Binance Holdings Limited, Anjarwalla, and Gambaryan, accusing them of offering services to subscribers on their platform, while failing to register with the Federal Inland Revenue Service (FIRS) to pay all relevant taxes administered by the service.
