The Nigerian government accuses Binance of being responsible for the fall of the Naira currency amid multiple alleged money laundering charges.
The legal trial for Tigran Gambaryan, a Binance executive and former United States federal agent, has been moved to September 2. The crypto industry is anxiously awaiting the outcome.
Gambaryan’s next court hearing is set to begin later today. He was arrested in Nigeria in February 2024 on charges of money laundering.
Gambaryan still has not been allowed access to his legal team in a troubling development regarding the trial’s prospects. According to an August 27 announcement by Binance CEO Richard Teng:
“Furthermore, the authorities are refusing to provide him access to his legal counsel, despite his trial commencing on September 2, which, we have been informed, is unconstitutional in Nigeria.”
Gambaryan has been accused of financial crimes totaling $34 million in connection to Binance’s operations in Nigeria. Calls for his release intensified at the end of August after he had spent six months in detention in the country.
Gambaryan Denied Basic Healthcare in Nigeria Detention
Gambaryan’s health has significantly worsened, making his prompt release increasingly important.
The Binance executive’s family has expressed concerns over his deteriorating health due to ongoing medical neglect. They stated:
“He is no longer able to walk from the pain of his untreated herniated disc or spinal injury. The prison is also refusing to provide him with a wheelchair.”
Based on his declining health, Binance’s CEO, Richard Teng, urged Gambaryan’s release. Teng wrote:
“I appeal once again for the Nigerian government to allow him to go home to his family on humanitarian grounds so that he can seek the appropriate medical treatment in the US…”
Nigerian Government Holds Binance Responsible for Naira’s Decline in 2023
Although the complete allegations against Gambaryan are detailed and intricate, the Nigerian government is also blaming Binance, the world’s largest exchange, for the decline of its currency, the Naira.
The government claimed that Binance played a role in Naira’s depreciation in June 2023. Teng commented:
“We had been offering P2P services as a value-added service for our users wishing to get exposure to crypto during that time. The end of the Naira’s currency peg by the government in June 2023 caused the biggest fall in Naira’s history according to experts.”
The Naira fell by more than 50% in 2024, trading at a low of $1 to 1,660 as of July 31.
Binance pointed out that Naira’s “downward trend continued” even after the exchange stopped offering peer-to-peer (P2P) services in Nigeria in February 2024.
