Binance, the world's largest cryptocurrency exchange, has expressed profound disappointment following a Nigerian court's decision that its executive, Tigran Gambaryan, must face trial on behalf of the company for charges including tax evasion and money laundering. Despite having no decision-making power within Binance, Gambaryan remains detained in Nigeria for over two months. The presiding judge, Emeka Nwite, denied Gambaryan bail on his 40th birthday, citing a high likelihood of absconding. The judge noted that Gambaryan's American and Armenian citizenships, combined with the fact that his passport is held by the complainant, do not guarantee his continued presence in Nigeria.

Gambaryan previously pleaded not guilty to the charges. Binance's spokesperson has stated that the just course of action is to free Tigran while discussions with the Nigerian government continue, emphasizing his dedication to public service and crime fighting, and deeming the charges meritless. This situation adds to a growing list of legal challenges Binance has encountered globally over the past year, as Nigeria intensifies its efforts to regulate and restrict virtual currency operations within the country.

The Nigerian Central Bank Governor, Yemi Cardoso, previously raised concerns about rampant currency speculation on cryptocurrency platforms, alleging that Binance facilitated the movement of an estimated $26 billion in untraceable funds. Furthermore, the chief of Nigeria's anti-graft agency, EFCC, Olanipekun Olukoyede, recently highlighted that some cryptocurrency traders in Nigeria could be unwitting conduits for terrorism financiers, describing some investigative discoveries as 'mind-boggling'.

The troubles for Binance in Nigeria escalated in February 2024 when two executives, Tigran Gambaryan, a U.S. citizen and Head of Financial Crime Compliance, and Nadeem Anjarwalla, a British-Kenyan and Regional Manager for Africa, were arrested and detained by Nigerian authorities. They were subsequently charged with four counts of tax evasion and money laundering. Separately, Nigeria’s tax authority accused Binance of not registering for remittance purposes, leading to tax evasion charges. The government is also demanding data on prominent Binance users in the country.

In March, one of the detained executives, Nadeem Anjarwalla, managed to escape EFCC custody and flee Nigeria using a Middle East airliner. Reports later emerged of his alleged rearrest by Interpol, though these claims remained unsubstantiated by the international police. Anjarwalla, a British-Kenyan national, has been on the run since his escape from Abuja custody, with some reports suggesting he was located in Kenya and faces extradition to Nigeria.

Initially, Binance CEO Richard Teng indicated about a month ago that the company was collaborating closely with the Nigerian government to resolve the situation. However, his stance seemingly shifted a week later when he alleged in a blog post that certain Nigerian authorities had demanded a $150 million bribe in crypto funds from the detained executives to dismiss the money laundering trial. In response, the Nigerian government, through a senate spokesperson, dismissed the allegation as an attempt to divert attention from serious criminality charges against Binance, demanding an apology from the crypto company and asserting that Binance had employed 'sophisticated criminality' to aid its employees' escape.