The Federal Government has affirmed that it is adhering to due process in the ongoing legal proceedings against the cryptocurrency platform Binance and one of its top executives, Tigran Gambaryan, who are being accused of illegal cryptocurrency trading in Nigeria.
The Minister of Information and National Orientation, Mohammed Idris, emphasised that the trial was being conducted according to Nigerian law.
Idris, according to a statement signed by his media aide, Rabiu Ibrahim, on Wednesday, said, “Due process has been followed at all stages, and prosecutors are confident in their case based on the evidence gathered.
“Binance will have the opportunity to defend itself against these severe financial crime charges. The next hearing is scheduled for June 20, 2024.”
The minister confirmed that Binance had been provided with consular access and all necessary care in line with diplomatic protocols and the rule of law.
The Federal Government’s reaction came after the United States of America lawmakers requested President Joe Biden expedite the release of the Binance executive, Tigran Gambaryan, who is being detained in Nigeria for over three months on allegations of money laundering and tax evasion.
According to a letter dated June 4, obtained by The PUNCH on Wednesday, the lawmakers addressed President Biden, Secretary of State, Antony Blinken; and Presidential Envoy for Hostage Affairs, Roger Carstens, emphasising the need for urgent intervention.
The 12 lawmakers, who signed the letter argued that Gambaryan was being held unjustly, stating that the allegations against him were “baseless” and represent a coercive tactic to pressure Binance.
“Clearly, Mr. Gambaryan is a U.S. citizen being wrongfully detained by the Government of Nigeria per 22 U.S.C. 1741 (a)(9) and (10). On behalf of Mr. Gambaryan, his family, and concerned Americans, we, the undersigned, urgently request and strongly encourage the transfer of his case to the Office of the Special Presidential Envoy for Hostage Affairs,” part of the letter read.
Some of the lawmakers who signed the letter include Rich McCormick, member of Congress; Michael T. McCaul, Chairman, House Foreign Affairs Committee; Barry Loudermilk, member of Congress; Austin Scott, member of Congress; Keith Self, member of Congress; and others.
In February, the Nigerian government arrested Gambaryan, a US citizen, and Nadeem Anjarwalla, on suspicion of money laundering and tax evasion. Anjarwalla evaded custody and fled to Kenya, while his colleague continues to remain in the Kuje correctional centre.
The PUNCH reported last month that Gambaryan’s health took a turn for the worse when he collapsed in a Federal High Court in Abuja during his money laundering trial.
The incident happened just as Judge Emeka Nwite was about to resume proceedings.
After being denied bail and missing a court hearing, Gambaryan’s whereabouts were unknown until he appeared in court the next day, looking significantly worse than before.
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In the previous sitting, Justice Nwite had dismissed Gambaryan’s bail application on the ground that the EFCC had been able to establish that he posed a flight risk in the same manner as Anjarwalla.
According to the lawmakers, as of June 4, the prison had not fully complied with the court order and has not ensured Gambaryan has received adequate health care.
“Mr. Gambaryan’s health and well-being are in danger, and we fear for his life. Immediate action is essential to ensure his safety and preserve his life. We must act swiftly before it is too late,” they stated.
The lawmakers asserted that Gambaryan’s detention meets the criteria for being “wrongfully detained by a foreign government,” as defined in the Robert Levinson Hostage Recovery and Hostage-Taking Accountability Act.
They urgently request that his case be transferred to the Office of the Special Presidential Envoy for Hostage Affairs.
In addition, they emphasised the need for swift action to ensure the Binance executive’s safety.
Last month, Chief Executive Officer of Binance, Richard Teng in a blog post described the detention of Gambaryan by the Nigerian government as ‘unjust’ and that it was a “dangerous precedent” for international businesses.
Teng also claimed that despite Binance’s repeated efforts at constructive engagement and cooperation with Nigerian authorities, Gambaryan remained in detention for ‘spurious’ reasons.
The Binance CEO declared that inviting a company’s mid-level employees for collaborative policy meetings, only to detain them, had set a dangerous new precedent for all companies worldwide.
“The message from the Nigerian government is clear: we must detain an innocent, mid-level employee, a former U.S. federal agent, and place him in a dangerous prison to control Binance.
“This regrettable turn of events contradicts the spirit of cooperation and transparency that Binance has consistently demonstrated in its interactions with the regulatory authorities,” Teng added.
The Nigerian government stepped up its cryptocurrency crackdown after it banned peer-to-peer trading last month.
The Central Bank of Nigeria initially prohibited financial institutions from providing services to cryptocurrency businesses in 2021 but reversed this decision in December 2023.
However, concerns resurfaced in February about Binance’s activities, including imposing a price cap on USDT trading, which reportedly led to the naira’s devaluation and economic instability in Nigeria.
