What Next After Bail Hearing of Binance Executive in Nigeria Postponed Again?

A Judge in Nigeria on Wednesday, September 4, postponed Tigran Gambarian’s bail hearing to October 9. This development is the latest in the series of twist unfolding between Binance and the Nigerian Government. Gambarian, until his detention in February has served as the head of financial crime compliance at Binance Holdings Ltd. 

Gambarian has been held in custody by the Economics and Financial Crime Commission EFCC since February on grounds of currency manipulation and money laundry. But sorts bail as a result of his deteriorating health. Citing the Nigerian Penal system’s inadequacy to provide adequate treatment as basis for his bail hearing.

The legal institution in Nigeria has on several occasion postponed his bail hearing and denied him bail. Prompting series of accusations by important figures in the United States and the Binanace CEO Richard Teng who said the arrests sets dangerous precedence for all companies worldwide.

Gambarian’s wife Yuki, had earlier reported the deteriorating conditions of Gambarian’s health since he was moved to Kuje prison.

Clamp Down of Authorities on High Profile Tech and Cryptocurrency Companies and Executives

While Gambarian’s case continues to gain more attention, with his wife initiating a petition for his return to the United States which has garnered over 5400 signatures, a few other high-profile executives in the crypto space have also been affected as authorities fight to regulates activities in crypto space.

Pavel Durov, the Telegram founder and CEO, is one of the most recent high-profile executives to have been affected. He was arrested and charged by the French authorities for failure to regulate his Telegram platform against illegal operations such as crimes money laundry activities and trafficking.

Nadeem Anjarwalla, a British-Kenyan dual national, and Binance executive was detained in Nigeria along with fellow executive Gambarian. Gambarian is himself a United States citizen and former IRS agent. Nadeem, who is Binance’s Africa regional manager, however, escaped custody with the Nigerian authorities reportedly working to have him extradited back into the country.

Binance founder and former CEO, Changpeng Zhao CZ, late last year agreed to step down from his role as CEO and plead guilty to money laundry violation charges. He was fined $50 million while binance was fined $4.3 billion.

With Attorney General Merrick B. Garland stating that “Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed — now it is paying one of the largest corporate penalties in U.S. history,”

Why the Clamp Down by Authorities: What Next for Binance Executive After October 9?

Regulation has been a long-standing issue for authorities since the development of blockchain technology. The need to ensure compliance often leads to clash between regulatory bodies and cryptocurrency institutions.

The latest episode in the clash between the Nigerian government and Binance follows in recent trends of indictments of cryptocurrency companies and executives with success in a few cases.

CZ was in March, sentenced to four months in prison. FTX founder Sam Bankman-Fried was sentenced to 25 years in prison after the collapse of his cryptocurrency platform FTX.

While the successful indictment of some high-profile executives in the crypto space offers a possibility of jail term for Gambarian, his foreign status as well as Binance insistence that he has no decision-making power offers an unclear pathway as to what his fate will be.

His fate could be determined by any or a combination of a strong case proving his innocence, the Nigerian authorities’ settlement with Binance, as well as diplomacy arrangement between the United States and Nigerian. Whatever the final verdict will be, its course will be played out eventually.