Executive at Binance and former federal agent in the United States, Tigran Gambaryan, has been jailed in Nigeria for six months on allegations of Money Laundering involving $35.4 million. According to his relatives, Gambaryan’s health is rapidly declining and that he is unable to walk as a result of excruciating pain from a herniated disc and a lack of access to quality medical care. Another medical professional was arrested because the Nigerian Correctional Service (NCoS) doctor refused to provide Gambaryan’s medical report, even after the court ordered him to do so.
The court ordered that Gambaryan be given permission to visit Nizamiye Hospital for a medical examination while under strict security. Furthermore, according to Gambaryan’s family, his movement is being further restricted by the denial of wheelchair use, and his legal team was not allowed to visit him between July 26 and August 14, 2024. Yuki, his wife, has made a public appeal for his release, highlighting the hardship that his incarceration has placed on their family. September 2, 2024 is the date of the hearing.
EFCC says Binance’s platform was used to transfer illegal monies.
Although the executives have been released from this case, Binance and its executives still have to deal with a separate Tax Evasion prosecution initiated by the Federal Inland Revenue Service (FIRS) in addition to the money laundering accusations presented by the EFCC. Additionally, they have brought legal action against Nigerian government entities for allegedly infringing their fundamental rights. Authorities in Nigeria have accused Tigran Gambaryan and Binance of money laundering and financial wrongdoing, and the company’s leaders have been charged with plotting to hide the source of $35.4 million in unlawful financial transactions.
More so, the inquiry has been headed by the Nigerian Economic and Financial Crimes Commission (EFCC), which asserts that Binance’s operations enabled illegal activities including as money laundering and foreign currency breaches. According to the EFCC, Binance’s platform was used to transfer illegal monies, making it challenging to identify the money’s original source. Should Gambaryan and Binance are found guilty, they might be subject to harsh consequences, such as large fines, asset confiscation, and possibly even jail time for Gambaryan. Binance’s operations within Nigeria may be subject to operational limitations as a result of the penalty, which would negatively affect its operations there.
There are questions on the quality of medical care Gambaryan is receiving.
Furthermore, the nature of the allegations proven against the defendants and the court’s final decision would determine the precise penalties, though. According to the most recent reports, he has suffered a major decline in health while being held, primarily as a result of a herniated disc that prevents him from walking. It’s unclear if a court order requiring his examination at Nizamiye Hospital has been fully implemented, despite his family’s concerns that he hasn’t been able to get proper medical care. There are questions regarding the quality of the medical care he is receiving because it is said that the jail administration disregarded the court’s orders.
Due to extreme discomfort and muscle atrophy, Gambaryan is reportedly bedridden and needs blood thinners to prevent clots. His treatment, according to his family and legal team, breaches both international and Nigerian Human Rights standards, which has led to grave concerns about his situation from a human rights perspective. For international business ties and the regulatory landscape for Bitcoin businesses operating in Nigeria, the case has important ramifications. Because digital currencies have become more popular but frequently function without traditional financial regulation, Nigeria is placing a growing emphasis on regulating them, as evidenced by the attention surrounding Binance.
Related Article: Nigeria Denies Binance Executive Health Claim
Additionally, more stringent enforcement measures and compliance requirements may result from this case, which might provide a precedent for how Nigeria and other nations in the region regulate the Cryptocurrency sector. Gambaryan’s arrest and health state have drawn the attention of international human rights organizations and the U.S. government. According to reports, the U.S. Embassy in Nigeria has been involved, but access has been restricted, making diplomatic attempts to support Gambaryan more difficult. Human rights organizations might step in and point out that everyone has the fundamental right to fair trials and appropriate medical treatment, which should be respected no matter what.