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Nigerian court rules Binance executive can be prosecuted on behalf of cryptocurrency exchange
By Camillo Eboh
ABUJA (Reuters) -A Nigerian court on Friday ruled that Binance executive Tigran Gambaryan can stand trial on behalf of the cryptocurrency exchange in an ongoing tax evasion case.
Binance and executives Gambaryan, a U.S. citizen and financial crimes compliance officer, and British-Kenyan citizen Nadeem Anjarwalla, a regional manager for Africa, face four counts of tax evasion.
In a separate case, they were also accused of laundering more than $35 million and carrying out specialized financial activities without a license. All have pleaded not guilty to money laundering charges.
Binance’s lawyer declined to comment after Friday’s court hearing. Gambaryan’s lawyer also had no comment.
“We are deeply disappointed that Tigran Gambaryan, who has no decision-making power within the company, continues to be detained,” a Binance spokesperson said in a statement Friday after the court hearing.
“These allegations against him are completely unfounded. He should be released while discussions between Binance and Nigerian government officials continue.”
Gambaryan remains in custody while Anjarwalla fled the country in March. Nigeria’s security adviser’s office said it was working with Interpol to seek Anjarwalla’s arrest.
Binance’s CEO accused Nigeria of setting a dangerous precedent after its executives were invited to the African country in February for talks with authorities and then detained as part of a crackdown on cryptocurrencies.
Binance itself has not been charged with tax evasion by Nigeria’s Federal Inland Revenue Service (FIRS), which said Gambaryan could face charges on behalf of the exchange.
Gambaryan’s lawyer has previously said that Gambaryan is “neither a director, nor a partner, nor a company secretary” and has not received written instructions from Binance to address the allegations on his behalf.
Judge Emeka Nwite ruled on Friday that Gambaryan should be served with the charges against Binance because he is Binance’s financial compliance officer and was duly appointed to represent him at a meeting in Nigeria.
Gambaryan will be arraigned in court on Wednesday to present a defense on behalf of Binance.
Gambaryan’s bail application in connection with the money laundering case was rejected on Friday.
Nigeria has blamed Binance for its currency problems after cryptocurrency websites emerged as the preferred platforms for trading the Nigerian naira currency as the country grapples with a chronic dollar shortage.
(Reporting by Camillus Eboh; Writing by Elisha Bala-Gbogbo and Chijioke Ohuocha. Editing by Jane Merriman)