The trial of Tigran Gambaryan, a top executive at Binance, has been rescheduled in Nigeria due to his absence from court. The Federal High Court in Abuja postponed the case to October 25, 2024, allowing Gambaryan to seek medical treatment. Judge Emeka Nwite, who is presiding over the case, dismissed his plea for bail but ordered that Gambaryan be transferred to a hospital for urgent medical care.
Health Concerns Lead to Delay
Gambaryan, who has been detained in Nigeria since February, is reportedly suffering from severe health issues, including a herniated disc that requires specialized surgery. His wife, Yuki Gambaryan, raised concerns about his deteriorating condition in August, appealing to the Nigerian government to release him on humanitarian grounds. She emphasized that his health had worsened to the point of irreversible harm, and surgery was urgently needed.
Despite these pleas, the court has not granted bail. However, the judge recognized the need for medical intervention and has allowed Gambaryan to receive treatment while awaiting trial.
Binance’s Legal Troubles in Nigeria
Binance, the world’s largest cryptocurrency exchange, has been facing legal scrutiny in Nigeria, with allegations of tax evasion and operating in violation of local financial regulations. Authorities in the country have accused Binance of facilitating large, untraceable cash flows through its platform, which has contributed to Nigeria’s ongoing currency crisis.
Earlier this year, the Central Bank of Nigeria (CBN) accused Binance of transferring over $26 billion via unknown sources through Binance Nigeria, which led to a fine of $10 billion. Binance, however, denies any wrongdoing and has rejected claims of evasion.
Cryptocurrency Crackdown in Nigeria
The crackdown on Binance came amid Nigeria’s broader efforts to control the flow of foreign currency and stabilize its economy. The government has blamed cryptocurrency exchanges for exacerbating the scarcity of US dollars, leading to the suspension of transactions involving the Nigerian naira on platforms like Binance.
As of March 2024, Binance halted all services involving the Nigerian naira, following pressure from Nigerian regulators. The suspension has added to tensions between the crypto industry and Nigerian financial authorities, who are struggling to manage the impact of cryptocurrency on the nation’s economy.
What’s Next for Gambaryan?
The rescheduled trial on October 25 will determine the next steps in Gambaryan’s case. His legal team continues to advocate for his release, citing his deteriorating health and the need for urgent surgery. Meanwhile, US legislators have also expressed concern over his prolonged detention, calling it “unreasonable.”
The outcome of this case could have far-reaching consequences, not only for Gambaryan but also for Binance’s operations in Nigeria and other emerging markets, where the exchange has come under increasing regulatory scrutiny.
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