Tag: Binance

The Federal Inland Revenue Service (FIRS), on Friday, re-arraigned Binance Holdings Limited on four-count charge bordering on tax evasion allegations.

Nigerian representative of Binance, Ayodele Omotilewa, who was docked, took a plea on behalf of the company before Justice Emeka Nwite of a Federal High Court, Abuja.

He pleaded not guilty to the four counts.

The re-arraignment before Justice Nwite followed the discharged of the cryptocurrency firm’s executive, Tigran Gambaryan, and his fleeing colleague, Nadeem Anjarwalla, from the alleged offence in the last adjourned date.

The News Agency of Nigeria (NAN) reports that Justice Nwite, in a ruling on June 14, discharged and struck out Gambaryan and Anjarwalla’s names from the charge after FIRS’ counsel, Moses Ideho, filed a fresh amended charge wherein Binance is listed as sole defendant.

The judge also ordered the parties to address the court in the next adjourned date on whether the new Binance representative, Omotilewa, a Nigerian and a lawyer, should be docked to take a plea on Binance behalf.

Read Also: Binance executive safe in our custody, says NCoS

Idoho had argued that since Omotilewa had been appointed by the company as its new representative in Nigeria, he should be ordered to enter dock to take plea on the amended charge on behalf of the cryptocurrency platform.

But Tonye Krukrubo, SAN, who appeared for Binance, opposed the application.

Krukrubo, who said Omotilewa was only appointed for specific purposes, said the new representative ought not to enter dock, but to watch brief at every sitting.

NAN reports that in the amended charge dated June 13 but filed June 14, Binance Holdings Limited is the sole defendant in the four-count charge.

Upon resumed hearing on Friday, Ideho informed the court that the matter was adjourned for the parties to address the court on whether the defendant’s representative, Omotilewa, should enter dock on behalf of the company.

He said he was ready to proceed.

But Krukrubo withdrew their objection, having been informed that Omotilewa would only be in the dock on representative capacity.

The four counts were read to Omotilewa, who pleaded not guilty.

The FIRS lawyer then sought a date for trial.

“In the light of the plea, we apply for a date to prove our charge against the defendant,” he said.

Justice Nwite fixed Oct. 11 for commencement of trial.

(NAN)

The Nigeria Correctional Service (NCoS) has said that the Binance executive in its custody was “safe and healthy.”

Spokesperson of the NCoS, Umar Abubakar, said this on Thursday, July 4, at the media briefing by the Strategic Communications Interagency Policy Committee (STIPC), Office of the National Security Adviser (ONSA), Abuja.

The family of Tigran Gambaryan, the head of crypto exchange, had recently told the Federal High Court Abuja, that his health is deteriorating in jail.

Gambaryan had been detained in Kuje prison, Abuja, for tax evasion and money laundering.

But the NCoS spokesperson said Gambaryan “is not under any serious health condition” contrary to what was said at the court and reported in some sections of the media.

He said: “I want to say that our responsibility is unique as a security agency because we keep those who conflict with the law.

Read Also: Binance France Changes Ownership Following Regulator Warning

“We don’t just dwell only on their information and rehabilitation, but we have a robust health care system that is evidence to all. If you check the morbidity rates and the mortality rates in our custodial centres, I would say it’s 0.1 percent.

“In 2020, during COVID-19, we recorded 0% of COVID patients in our custodial centres. So if any inmate falls ill within our custodial center, we have qualified medical personnel to attend to them.

“And just like other open hospitals, where we felt that the condition could not be managed within our facility, they referred them to an appropriate hospital where they will continue their treatment.

“So for the Binance executive, he is not under any serious health condition. He is fine with us, and he will continue to be fine with us.”

• Detainee receiving quality healthcare, says minister
• American legislators push for humanitarian release

Claims that Binance executive, Tigran Gambaryan, is being held in unsavory prison conditions in Nigeria or that his health is deteriorating was yesterday debunked by the Federal Government.

Two US lawmakers who visited Gambaryan in Nigeria had claimed that he was in poor health and asked the American embassy to seek a humanitarian release.

But the Minister of Information and National Orientation, Mohammed Idris, said Gambaryan is being held in lawful detention and has access to quality medical care whenever required.

In a statement he personally signed, Idris said the Binance executive also has full access to consular services from his home government.

He therefore described the allegations as false, adding that the federal government will not deny Binance Executive his fundamental rights to lawful trail and healthcare.

Read Also: Binance executive on lawful trial has access to quality medical care – FG

Idris said: “It has become necessary for the Federal Government of Nigeria to address claims that Binance Executive, Tigran Gambaryan, is being held in unsavory prison conditions in Nigeria, or that his health is deteriorating.

“We would like to state that these allegations are false and should be ignored.

“Gambaryan is being held in lawful detention and has access to quality medical care whenever required. He also has full access to consular services from his home government.

“The Federal Government will not do anything to jeopardise his fundamental rights to lawful trial, and to quality care, including healthcare, even as he undergoes trial by the laws of the Federal Republic of Nigeria.

“It is worth reiterating that his detention is a court-ordered one, and only the court can alter the terms or direct his release.

“The Federal Government of Nigeria will continue to follow due process in its quest to bring Binance to justice — a legitimate sovereign quest that is similarly being pursued in several other countries around the world.

“This adherence to legal and diplomatic standards underscores Nigeria’s dedication to upholding justice and maintaining the integrity of its judicial processes.

“The executive is being treated with the utmost fairness, and his legal and human rights are being protected throughout the judicial proceedings.”

US lawmakers urge embassy to seek humanitarian release

Two US lawmakers who visited Gambaryan said he is in poor health and asked the American embassy to seek a humanitarian release even as local authorities press on with a fraud trial against him.

Representatives French Hill and Chrissy Houlahan said they used the opportunity of a national-security visit to the West African nation “to advocate for an American that has been wrongfully detained by the Nigerian government.”

In a video posted on X, Arkansas Republican Hill said the Binance executive “has malaria and double pneumonia, and he reports that he has lost significant weight.”

In the same clip, Pennsylvania Democrat Houlahan said: “We will be able to put the full force of America behind us to make sure that he is returned home safely.”

Hill was among 16 Republican lawmakers that in a June 4 letter to President Joe Biden accused Nigeria of holding Gambaryan hostage.

Aint-Graft agency – the Economic and Financial Crimes Commission (EFCC) yesterday continued with its alleged money laundering charge preferred against Tigran Gambaryan, an executive of Binance Holdings Ltd at a Federal High Court, Abuja

The criminal charge continued before Justice Emeka Nwite inspite of the withdrawal of a charge by the Federal Inland Revenue Service (FIRS) against Gambaryan in the alleged tax evasion case filed against him and the cryptocurrency exchange platform.

The EFCC filed a five-count charge against Binance and Gambaryan while the FIRS filed a four-count charge against the duo.

Binance and Gambaryan were accused by the anti-graft agency of money laundering involving $35.4 million.

Besides, the company was under suspicion of alleged terrorism financing.

Last Friday, Justice Nwite discharged the detained Gambaryan and his fleeing colleague, Anjarwalla, from the alleged tax evasion charge.

The judge made the decision in a short ruling following a fresh amended charge filed by the FIRS in view of a notice from Binance about its appointment of a Nigerian representative, Mr. Ayodele Omotilewa, to oversee its affairs in the country.

However, expectations were high prior to yesterday’s proceedings that the anti-graft agency would follow suit.

But at the resumed hearing, the EFCC’s lawyer, informed the court that the matter was slated for the defence to cross-examined the agency’s first prosecution witness (PW1), Mr. Abdulkadir Abbas, a Director with the Security and Exchange Commission (SEC).

Read Also: Court dismisses suit seeking Olukoyede’s removal as EFCC chair

Then Gambaryan stepped forward into the dock.

While being cross-examined by counsel for the 1st defendant (Binance), Mr. Babatunde Fagbohunlu, SAN, Abbas testified against Binance and Gambaryan.

The witness, who is Director of Registration, Exchanges and Market Infrastructure Department at SEC, stated that a private company that wants to raise capital from the public in Nigeria, must become a Public Limited Company (Plc) before it can engage in IPO (Initial Public Offer).

He, however, said that Binance did not even register with his office in the first place, adding that the SEC’s regulations mandate it to oversight on all Bitcoin trading platforms under the Nigeria law.

Justice Nwite adjourned the matter until June 21 for continuation of cross-examination.

A Federal High Court in Abuja has discharged two officials of virtual currency trading firm, Binance Holdings Limited – Tigran Gambaryan and Nadeem Anjarwalla – from a tax evasion charge brought against them and the firm by the Federal Inland Revenue Service (FIRS).

While Gambaryan is currently being held in prison in Abuja, Anjarwalla escaped from lawful custody earlier this year.

Binance, Gambaryan and Anjarwalla are also being tried on a separate money laundering charge brought against them by the Economic and Financial Crimes Commission (EFCC).

Trial has commenced in the case by the by the EFCC, with prosecution calling its first witness.

At the mention of the FIRS case on Friday, June 14, Binance’s lawyer, Tonye Krukrubo (SAN) disclosed that his client has sent the name of one of its representatives in Nigeria to the court and the FIRS.

FIRS’ lawyer, Moses Idehu confirmed the development and sought the court’s permission to substitute the existing charge with an amended one, dated June 13.

Read Also: Govt: we’ll secure Binance, official’s conviction

Idehu said his client has decided to discontinue its case against the two officials of Binance – Gambaryan and Nadeem, leaving only the firm as the sole defendant.

He then urged the court to direct that the Binance’s new  representative be directed to enter the dock and plead to the amended charge on behalf of the firm.

Krukrubo objected and  argued among others , that  Nigerian law does not mandate a representative of a company that is sued to stand inside a dock and plead on its behalf.

Krukrubo was of the view that a representative of a company that is sued may not need to attend court and could even write the court in respect of the company’s position in the case.

At that point, he prayed the court to discharge Gambaryan and Nadeem from the FIRS case since a representative has been official sent to the court, a position Idehu agreed with.

Ruling, Justice Emeka Nwite ordered lawyers to both sides to file written addresses, arguing their positions on the issue of whether or not Binance’s representative should be made to mount the dock and plead to the charge on behalf of the firm.

Justice Nwite proceeded to strike out the earlier charge and equally strike out the names of Gambaryan and Nadeem as defendants in the case.

The judge then adjourned  till July 12 for arraignment of Binance on the amended charge.

The Federal Government yesterday expressed confidence that it would secure the conviction of Crypto-currency trading platform, Binance and one of its executives currently detained in Nigeria.

It predicated its position on the fact that ‘’due process has been followed…’’ and the quality of evidence gathered against them.

The government, through Information and National Orientation Mohammed Idris, also referred to the fact that Binance Founder Changpeng Zhao and some executives of the firm had been jailed in different countries, including the United States. 

The firm and two of its executives– Nadeem Anjarwalla and Tigran Gambaryan—are facing trial for money laundering, terror financing, and tax evasion at a Federal High Court in Abuja.

Before their case was taken to court, Anjarwalla, a  British/ Kenyan citizen , escaped from detention in  Abuja with a smuggled passport.   Gambaryan, an American, who is still in captivity has made appearances in court where pleaded not guilty.

Information Minister Idris said in a statement by his media aide Rabiu Ibrahim, that the next hearing of the case is  June 20.

He described Binance as a ‘’rogue online platform’’ that illegally traded in cryptocurrency in Nigeria until early March when its activities were uncovered.

Read Also: Binance will face due pocess on financial crimes charges – FG

He said:  “At all stages, due process has been followed, and prosecutors are confident of their case, based on the facts and evidence gathered. Binance will have every opportunity to defend itself in court against these severe charges of financial crimes against the Federal Republic of Nigeria. ‘’ 

The minister explained that Binance and Gambaryan had received consular access and all due care, following normal diplomatic protocols and the rule of law.

He added that the court had sufficiently posited that bail was denied Gambaryan because of flight risk after Anjarwalla absconded from detention.

Idris said it was important to prefix  ‘’Binance as an entity whose representatives have been variously imprisoned, fined, sanctioned, and banned in recent years in North America, Europe, and Asia.

“Changpeng Zhao, the billionaire co-founder and former CEO of Binance is currently serving a four-month prison sentence in the United States after being found guilty of money laundering, while Binance has openly accepted its role in facilitating terrorism, corruption, sanctions busting, and in aiding and abetting pedophile gangs.

“Law enforcement agencies believe Binance operations in Nigeria are part of a broader international pattern. It will be for the courts here, as in other jurisdictions, to hold the company and its executives accountable,” the minister added.

Binance had a turnover in Nigeria of over $20 billion in 2023 alone, far above the federal budget for Health and Education.

The Federal Government has maintained that  due process will be followed in the financial case brought against Binance. 

The Minister of Information and National Orientation, Mohammed Idris assured this on Wednesday in a statement. 

The statement, which was signed by his media aide, Rabiu Ibrahim, said said due processes are being applied in all stages of the trial by the laws of the Federal Republic of Nigeria.

The statement reads: “Against the backdrop of continuing interest in the ongoing trial of rogue online platform, Binance, and one of its Chief Executives, who illegally trade in cryptocurrency in Nigeria, the Minister of Information and National Orientation, Mohammed Idris, has said due processes are being applied in all stages of the trial by the laws of the Federal Republic of Nigeria.

“At all stages, due process has been followed, and prosecutors are confident of their case, based on the facts and evidence gathered. Binance will have every opportunity to defend itself in court against these severe charges of financial crimes against the Federal Republic of Nigeria. The next hearing is on June 20, 2024,” Idris said.

“The Minister explained that Binance, the defendant, has received consular access and all due care, following normal diplomatic protocols and the rule of law, adding that the judge in the case has sufficiently posited that bail was denied because of the flight risk, after a co-accused, now the subject of an Interpol warrant, illegally absconded.”

Binance had a turnover in Nigeria of over $20 billion in 2023 alone, far above the Federal budget for health and education, fueling currency speculation and the cost-of-living crisis. In addition, it is not registered in Nigeria and neither has it ever paid any taxes within the Nigerian jurisdiction, having all the while operated without oversight or any of the normal guard rails to flag criminal activity.

The Minister said it was important that Binance is prefaced as an entity whose representatives have been variously imprisoned, fined, sanctioned, and banned in North America, Europe, and Asia, in recent years. 

Read Also: Binance case: Lawyer seeks stay of action

“Changpeng Zhao, the billionaire co-founder and former CEO of Binance is currently serving a four-month prison sentence in the United States after being found guilty of money laundering, while Binance has openly accepted its role in facilitating terrorism, corruption, sanctions busting, and in aiding and abetting paedophile gangs.

“Law enforcement agencies believe Binance operations in Nigeria are part of a broader international pattern. It will be for the courts here, as in other jurisdictions, to hold the company and its executives accountable,” Idris said.

Andrew Adams, a New York lawyer, has urged the United States Department of Justice (DOJ) to halt the transfer of forfeited funds to Nigeria under the “international sharing” programme, in response to what he described as patently unjustified charges against Tigran Gambaryan, a Binance executive.

Adams expressed his views in an opinion piece published by CoinDesk, a media outlet covering the cryptocurrency industry.

In late February, Gambaryan and another Binance employee, Nadeem Anjarwalla, a British Kenyan, were detained by Nigerian officials upon their arrival in the country.

According to him, the detention occurred without prior notice or public announcement of charges.

He said that Nigerian prosecutors later charged the two with money laundering and tax offences, accusations that Adams claims are entirely unrelated to Gambaryan’s conduct.

Read Also: Alleged money laundering: Binance’s official Gambaryan, falls in court

Adams noted that Gambaryan, who serves as Binance’s lead law enforcement liaison, is a former IRS criminal investigator and a global educator on using blockchain technology to combat financial crimes.

According to Adams, Gambaryan’s arrest and subsequent charges are an abuse of police power by Nigerian authorities.

Adams highlighted the lack of an official U.S. response, noting that diplomatic and official actions have been minimal.

He explained that declaring someone “wrongfully detained” could necessitate economic sanctions against foreign officials, which could complicate diplomatic relations and policy negotiations.

Adams pointed out that the U.S. has an effective tool to signal its disapproval of Nigeria’s actions.

He argued that the U.S. should cease the transfer of forfeited funds to Nigeria under the DOJ’s “international sharing” programme, which is used to reward foreign partners for assisting in law enforcement actions.

An official of Binance Holdings Limited, Tigran Gambaryan, who is being tried with the company on a money laundering charge, fell in court during Thursday’s proceedings before a Federal High Court in Abuja.

Gambaryan fell while being assisted to the dock shortly after the case was called by an official of the court.

At the mention of the case, Gambaryan failed to stand up from his seat, prompting Justice Emeka Nwite to ask if the defendant was in court.

The prosecuting lawyer, Ekele Iheanacho told the judge that the defendant was in court and pointed to where Gambaryan was sitting.

Subsequently, one of the lawyers in the defence team, who was seated close to Gambaryan, stood up and pulled the defendant up from his seat.

The lawyer held the defendant and walked him towards the dock. But, before they could get to the dock, Gambaryan fell.

The lawyer, against pulled the defendant up and placed him on a chair not too far from the dock.

Gambaryan’s lead lawyer, Mark Mordi (SAN) told the court that his client could not stand up as the case was called because he was indisposed.

Mordi said he has written to the court to inform it about his client’s failing health.

The development however stalled the business of the court for the day.

By the court’s schedule, the lawyer to Binance (named as the first defendant) was to cross-examine the first prosecution witness on Thursday.

Upon the agreement by lawyers to the parties, Justice Nwite adjourned further hearing till June 20.

The first prosecution witness, Abdulkadir Abbas, a director in the Security and Exchange Commission (SEC) had while testifying on May 17 told the court that the operations of Binance negatively impacted Nigeria’s financial system.

Abbas added that not only did Binance operate in Nigeria illegally, its mode of operation circumvented the normal currency trading route put in place by regulators.

The witness said he met Gambaryan once during a meeting at the office of the National Security Adviser (NSA).

Abbas said Binance and its officials were invited by the NSA to the meeting to discuss its operations and the impact on the Nigerian economy.

The witness added: “At the meeting, it was clearly observed that the first defendant’s (Binance’s) mode of operation is against the provision of the Investment and Securities Act 2007

“Apart from not being registered in Nigeria and making public solicitation without authorisation, the first defendant operates a naira peer-to-peer (P2P) in exchange for crypto assets

“The naira P2P being deployed in the transaction circumvents the normal trading route.

“This is because the Central Bank of Nigeria (CBN) has banned banks from providing certain settlement platforms for crypto exchange.

“As a result of the naira P2P deployed by Binance, and coupled with the large number of Nigerian users, who were leveraging on that model, it adversely affected the official exchange rate.

“As a matter of fact, the Binance platform became a reference point for determining the exchange rate.

“The naira P2P model created uncertainty and a high level of volatility in the exchange rate as Nigerian users trade arbitrarily on the platform, thereby impacting negatively financial system stability.

“The naira P2P rate quoted on Binance’s platform is not referencing any official rate and its continuous operation affects the value of our naira.

“This was one of the serious concerns raised at the meeting we had at the office of the NSA,” the witness said

He added that the rate at which naira was being sold on Binance’s platform had not relationship with the official exchange rate.

Abbas said the rate on Binance’s platform was not driven by any fundamentals, adding that it got to a stage where the value of the naira was determined based on the rate quoted on Binance’s platform.

He said the rate had no correlation or relationship with the official rate.

The witness said by operating its platform, which is not registered or regulated by the SEC in Nigeria, Binance was in breach of the extant provisions of the Investment and Securities Act 2007

“In addition, by making public solicitation to Nigerians without due authorization by the SEC, the first defendant violated the Investment and Security Act,” the witness said.

Read Also: Drama as Binance executive, Gambaryan, collapses in court over alleged ill-health

At the conclusion of his evidence-in-chief, lawyer to Binance, Babatunde Fagbohunlu (SAN) he needed to retrieve some documents from the court with which he planned to cross-examine the witness.

Fagbohunlu said he submitted an application to that effect earlier in the day, which was not yet approved.

He sought a short stand down to enable him to confirm if his application was approved and if the documents could be made available to him.

Justice Emeka Nwite noted that since his application was filed today, it may be difficult to have it approved if the case was stood down.

Justice Nwite then adjourned till May 23 at 12 noon for cross-examination.

There was a mild drama at a Federal High Court in Abuja on Thursday, as detained Binance executive, Tigran Gambaryan, who is facing a money laundering charge, slumped in the open court over alleged ill-health.

The development occurred shortly after the matter was called for trial continuation before Justice Emeka Nwite.

As soon as the case was called by the court registrar, Gambaryan did not step forward to the dock from the back row seat where he was seated.

Justice Nwite then asked where the 2nd defendant (Gambaryan) was and one of the lawyers in the defence team, who sat beside Gambaryan, held him by the side towards the dock.

As they walked slowly to the dock, Gambaryan fell down and the lawyer assisted him to sit in the front row seat.

His lawyer, Mark Mordi, SAN, explained to the court why his client could not stand as soon as the matter was called.

Mordi said Gambaryan had been indisposed and a written application letter had been filed to notify the court of his failing.

“My lord, the case may not certainly proceed today,” he said.

Read Also: We are disappointed in today’s court ruling against Gambaryan – Binance

The News Agency of Nigeria (NAN) observes that throughout the proceeding, the cryptocurrency firm’s agent rested on the arm of the seat where he was sitting.

NAN reports that Justice Nwite had, on May 16, dismissed Gambaryan’s bail application on the ground that the EFCC had been able to establish that the defendant, who is currently being remanded at Kuje Correctional Centre, would jump bail if granted.

It would also be recalled that the alleged tax evasion charge filed by the Federal Inland Revenue Service (FIRS) against Binance Holdings Limited and Gambaryan could not proceed on Wednesday due to his absence in court.

(NAN)