Binance prosecution continues as court frees executive on health grounds

The Federal Government on Wednesday withdrew the money laundering charges filed against Tigran Gambaryan, the Executive of Binance Holdings Limited.

Gambaryan, who is facing $35m in money laundering charges brought against him by the Economic and Financial Crimes Commission, was discharged on health grounds and due to diplomatic pressure.

Counsel for the EFCC, R. U. Adagba, informed Justice Emeka Nwite during Wednesday’s proceedings of the Federal Government’s decision to withdraw the charges against the detained crypto executive, due to his ill health.

However, she noted that the Federal Government would continue with the charges against the crypto company, Binance Holdings Limited.

She said “The government has reviewed the case and, taken into consideration that the second defendant (Gambaryan) is an employee of the first defendant (Binance Holdings Limited), whose status in the matter has more impact than the second defendant’s, and also taking into consideration some critical international and diplomatic reasons, the state seeks to discontinue the case against the second defendant.

“My Lord, also, the health of the defendant has been a recurrent issue which the state has managed well at the correctional centre facility through the National Security Adviser.

“A surgery has been recommended, and the recovery process may take some time which may impact the pace of the trial.”

Gambaryan’s counsel, Mark Mordi (SAN), in response, said “We ask the court to expedite everything to ensure the second defendant leaves the facility of the correctional centre.”

Citing Section 108 of the Administration of Criminal Justice Act, Mordi appealed for acquittal alongside the discharge of his client.

The prosecution, however, objected to the acquittal request, stating that the case was still active and could be revisited anytime as it was yet to be heard on its merits.

She said “The second defendant was only considered for discharge due to his ill health, and not on the ground of insufficient evidence.

“The matter has not been heard on its merit, and we are still calling witnesses.”

Following submissions from both the prosecution and defence counsel, Justice Nwite discharged Gambaryan from the money laundering charges and adjourned the case against the cryptocurrency firm until November 22 and November 25 for continuation of the trial.

He said, “I hereby make an order to the correctional centre to immediately release the second defendant.”

At the previous sitting on Friday, October 18, the court adjourned to Friday, October 25, for the correctional service to report back with an update on Gambaryan’s health condition.

The adjournment was based on an agreement between both parties in the suit after the second defendant’s (Gambaryan) counsel requested it to update the court on his client’s health.

The prosecution counsel, Ekele Iheanacho (SAN), did not oppose the request.

The PUNCH reported that Gambaryan was absent at the last sitting which got the court worried, as none of the correctional service, defence counsel or prosecution counsel knew of his whereabouts.

Justice Nwite had to order the correctional centre representative present to make a call to whoever was in charge to confirm his whereabouts.

Following his order, the court stood down the matter for some minutes.

Upon the judge’s return to the courtroom, the prosecution counsel informed the court that Gambarayan was receiving treatment at a hospital and that the correctional centre would provide more details.

The correctional centre officer afterwards stepped forward and told the court that Gambaryan was very sick and would not be making an appearance in court as scheduled.

He said, “My Lord, the second defendant is very sick, and we will not be able to produce him in court today.”

The defence counsel had earlier prayed to the court for a six-week bail to allow his clients to seek proper medical attention outside the correctional facility, citing inadequate care in custody.

Describing Gambaryan’s health as perilous, Mordi said the second defendant required surgery for a herniated disc and psychiatric care due to depression and anxiety.

The prosecution, however, opposed Mordi’s application, insisting that the severity of the second defendant’s ill health was being exaggerated.

The prosecutor argued that the second defendant could receive treatment while detained at the correctional facility, asserting that his health condition was not serious enough to justify bail.

Iheanacho stated that Gambaryan had been taken to top medical institutions, including the State House Clinic and Nizamiye Hospital, and a medical report from the State House Clinic indicated that Gambaryan had refused medication and treatment.

Iheanacho further said reports received also showed Gambaryan had declined the treatment offered to him at the premier medical facility.

The prosecution counsel told the court that according to the report from Nizamiye Hospital, “the second defendant received comprehensive care, including consultations with specialists and neurosurgeons.”

He also said the report revealed that he showed no health deterioration.

Speaking further, he said, “On 29th August, we received a medical report of Gambaryan from Nizamiye hospital and the report indicated that he has been provided adequate treatment.

“He was taken to the State House Clinic and was hospitalised for five days, but was resisting medication.

“The medical report indicated low back pain, but he has stable vitals. He has been taken to more than two neurosurgeons.

“The report indicated that the patient was dissatisfied, and refused medications. He was discharged with no obvious deterioration of his medical health.”

The court, however, denied Gambaryan’s bail application on the ground that renowned Nigerian medical experts were managing his health.

Justice Nwite ordered the Nigerian Correctional Service to refer Gambaryan to a standard hospital in Abuja for treatment for three days to two weeks under security supervision.

The denial of the bail application marked the second time Gambaryan was refused bail, with the first application argued on May 2.

Mordi had appealed to the court to grant his client bail, as he had, by the time, been in detention for over 50 days.

He said “I urge your Lordship to grant the second defendant bail who has been in custody for more than 50 days in a foreign land without visits from family members. This is hard for him.”

He also tried to convince the court that the client did not pose a flight risk as stated by the prosecution.

“He can’t go anywhere, they (EFCC) have his passport. Already, being here unable to meet his family is enough torture.

“The proof of evidence does not contain one document that incriminates my client. I dare him (prosecution) to bring it out, let’s see.”

Iheanacho, however, opposed Mordi’s submission and asked the court not only to refuse Gambaryan’s bail request but also to transfer him from Kuje Prison to EFCC custody, to prevent him from fleeing.

He argued that Gambaryan posed a flight risk, like his counterpart, Nadeem Anjarwalla, as both were dual citizens of two nationalities.

He also informed the court that the defendant had attempted to secure a new international passport from the United States embassy under the pretence that his own was missing, despite knowing it was with the commission.

Justice Nwite, while ruling on the bail application on May 17, denied the second defendant’s request because he posed a flight risk.

Justice Nwite held that as a foreigner with no family ties, attachments, or roots in Nigeria, the second defendant would have no reason to remain for his trial and would likely abscond if granted bail.

Binance, its US head of financial crime compliance, Gambaryan, and the exchange’s British-Kenyan regional manager for Africa, Nadeem Anjarwalla, were facing money laundering charges amounting to $35m, brought against them by the anti-graft agency.

Gambaryan and Anjarwalla were initially both detained in the custody of the Office of the National Security Adviser.

However, Anjarwalla fled lawful custody on March 22, 2024, while his counterpart, Gambaryan, was arraigned on April 8.

Following his arraignment, the court ordered his remand to Kuje Correctional Facility.