Tag: Binance

A Federal High Court in Abuja has fixed May 17 for ruling on the bail application filed by an official of Binance Holdings Limited, Tigran Gambaryan, currently being held in Kuje prison.

Justice Emeka Nwite chose the date after entertained arguments from lawyers to the prosecution and defence.

Gambaryan was, on April 8  arraigned on a five-count money laundering charge filed by the Economic and Financial Crimes Commission (EFCC). He pleaded not guilty when the charge was read to him.

Also named as defendants in the charge, marked:  FHC/ABJ/CR/138/2024 are Binance Ltd  and another official of the firm, Nadeem Anjarwalla (now at large).

Gambaryan’s lawyer, Mark Mordi (SAN) while moving the bail application, urged the court to admit his client to bail 

Mordi argued that all the offences, for which his client was being tried, are bailable.

He claimed that his client was a victim of state sanctioned hostage taking.

“This is state sanctioned hostage taking. What they are doing is to hold this defendant down to force his employer to give them the information they desire,” Mordi said.

Read Also: Fleeing Binance chief Anjarwalla to be deported from Kenya

He said although the country has laws, the prosecution was not playing by the rule.

Mordi added: “The second defendant is not a flight risk and he is worthy of being granted bail.”

The defence lawyer, who claimed that his client has been in custody for 50 days, urged not punish his client because his co-defendant escaped from custody.

He faulted the prosecution’s claim that Gambaryan planned to procure new international passport to enable him flee from custody.

Responding, prosecuting lawyer, Ekele Iheanacho urged the court to reject the bail application.

Iheanacho claimed that the second defendant  is a flight risk, stating that he made a false representation to get new international passport when he claimed that his passport was missing even when he knew that it was with the state.

“The second defendant made attempt to procure new passport at about the time his colleague escaped from lawful custody. 

“If he was no intercepted by operatives of the EFCC he would have completed the act.

“There is no evidence that there was a written request from the US Embassy inquiring about the whereabouts of the second defendant’s passport, contrary to claim by the defence counsel.

“The court will be taking a great risk by granting the second defendant  bail, moreso when the second defendant has no attachment to any community in Nigeria.

“Nobody has come out to say release this person on bail I am ready to stand as his surety. The fact that his passport is with the complainant is not a guarantee that he will remain in Nigeria,” Iheanacho said 

The prosecuting lawyer told the court that the second defendant is a citizen of Armenia by birth and that he has not renounced that citizenship.

“The experience we had with the man who ran to Kenya while his British passport was with the complainant will repeat itself here,” Iheanacho said.

He requested that, in view of the information in the disposal of the complainant, the defendant  should be kept on EFCC’s custody as against his current detention place of prison.

Iheanacho added: “The first defendant is operating virtually.The only link we have to it now is the second defendant. The court will be taking a great risk to grant thia bail application.”

• Hearing of bail application postponed for 11 days

A Federal High Court in Abuja has ordered that a top official of Binance Holdings Limited, Tigran Gambaryan, be remanded in Kuje prison in the Federal Capital Territory (FCT).

Justice Emeka Nwite gave the order yesterday after Gambaryan was arraigned and he pleaded not guilty to the five-count money laundering charge filed against him and two others.

Also named as defendants in the charge filed by the Economic and Financial Crimes Commission (EFCC) are Binance Limited and another official of the firm, Nadeem Anjarwalla (said to be on the run).

A plea of not guilty was also entered on behalf of Binance Limited.

The prosecuting lawyer, Ekele Iheanacho, applied that the defendant be remanded in prison custody pending the commencement of trial.

Lawyer to Gambaryan, Mark Mordi (SAN), informed the court about a pending bail application filed for his client.

Mordi prayed the court to hear the bail application or remand Gambaryan in the custody of the EFCC pending the determination of the bail application.

Ruling, Justice Nwite ordered that Gambaryan be held in prison until April 18 when his bail application would be heard.

The judge fixed May 2 for the commencement of trial.

In an earlier ruling, the judge had overruled Mordi on the objection he raised against Gambaryan’s arraignment.

Last Thursday, Mordi queried the propriety of arraigning his client when the first defendant, Binance, had not been properly served with the charge.

The lawyer argued that his client did not qualify as an agent of Binance in Nigeria who could accept service of the charge on behalf of the company.

Read Also: UPDATED: Court sends Binance official Gambaryan to prison

But Iheanacho faulted Mordi, arguing that the prosecution had done the needful under the law by serving Binance through the second defendant (Gambaryan) who is the only known physical representative of the firm in Nigeria.

He added: “Service on the first defendant, which the second defendant refused to accept, is a proper service on the first defendant.”

In his ruling yesterday, Justice Nwite held, among others, that the objection raised on behalf of Gambaryan was without merit.

The judge averred that from Gambaryan’s affidavit attached to his bail application, he stated that he was representing Binance in Nigeria.

Justice Nwite held that by the provision of Section 478 of the Administration of Criminal Justice Act (ACJA), the prosecution could serve Binance, a corporate organisation, through the second defendant who qualifies as Binance agent within jurisdiction.

The judge also held that all the prosecution needed to do was establish that the person being served was an agent of Binance.

He averred that part of the deposition in an affidavit filed by the second defendant claimed, among others, that Gambaryan and Anjarwalla “visited Nigeria for the purpose of attending a meeting with Nigerian government officials on behalf of Binance”.

The judge then queried: “Does the second defendant qualify as an agent of Binance? From the above statement, the second defendant is the duly appointed representative of Binance.

“The second defendant is bound to receive summons on behalf of Binance.

“The service on the second defendant on behalf of the first defendant is a proper service. The court should proceed with the arraignment of the defendants.”

The planned arraignment of Binance Holdings Limited, with two of its officials – Tigran Gambaryan and Nadeem Anjarwalla – before a Federal High Court in Abuja was stalled on Thursday.

Binance, Gambaryan and Anjarwalla (now at large) were to be arraigned on two separate charges filed by  the Federal Inland Revenue Service (FIRS) and the Economic and Financial Crimes Commission (EFCC).

When the charge by the FIRS was called, a court official asked Gambaryan to mount the dock, which he promptly did.

His lawyer, Chukwuma Ikwuazonu (SAN), questioned the propriety of puting his client in the dock when the charge was not yet served on him as required by law.

When asked by the judge, Justice Emeka Nwite, why the second defendant (Gambaryan) was not served, lawyer to the FIRS, Moses Idehu said his client could not access the second defendant, who was in the custody of the EFCC.

Idehu applied to serve the second defendant since he has been brought to court.

Ikwuazonu, who faulted claim by the lawyer to the FIRS, wondered why an agency of the Federal Government would claim not to have access to a defendant being held by another agency of the Fed Govt.

He however did not object to having his client served with the charge while in the dock.

After obtaining the permission of the court, Idehu had the charge served on the second defendant, following which he prayed the court to allow him sometime to consult with his lawyer on how to plea to the charge.

Ikwuazonu did not object to Idehu’s request for an adjournment to enable Gambaryan consult with his lawyer.

Ruling, Justice Nwite adjourned till April 19 for arraignment.

The planned arraignment on the money laundering charge by the EFCC was also stalled 

owing to the objection raised by another lawyer who represent Gambaryan, Mark Mordi (SAN) against the mode of service of the charge on Binance.

Read Also: Binance: Whistleblowers cry out over threat to life, seek FG’s protection

When the case was called, lawyer to the EFCC, Ekele Iheanacho told the court that the defendant’s had been served with the charge and urged the court to direct that the charge be read to the defendants.

Mordi objected and argued that since it was a joint charge, the plea of the second defendant could not be taken when service has not been effected on the 1st defendant (Binance Ltd)

Responding , Iheanacho said the prosecution s rved the first defendant through the 2nd defendant (Gambaryan), “who is a representative of the company (Binance). 

“We are not required to go and bring the company when its representative is present in court,” Iheanacho said and cited the provision of Section 478 of the Administration of Criminal Justice Act (ACJA).

He added: “There is nothing stoping the court from proceeding with the arraignment of the defendants.”

Citing the provision of Section 477 of the ACJA, Mordi argued that his client was right to have refused to accept service of the charge on behalf of Binance.

Mordi added that said his client refused service on behalf of the first defendant (Binance) because he was not instructed to accept service for the company.

He added: “On a community reading of sections 123, 477 and 478 of  ACJA, each provision anticipates a mandatory process that should occur before criminal proceeding can commence.

“From what the prosecution has said, it is obvious that service, under Section 123 has not been accomplished.

“The prosecution is also unable to show an instrument of appointment of the second defendant, as required under Section 477 of the ACJA, that the second defended was appointed to accept service on behalf of the first defendant.

“It therefore shows that service has not been effected on the first defendant. The second defendant does not reside in Nigeria,” Mordi said.

He informed the court that he was not briefed by Binance to represent it, but told the court that the firm “does not have a physical footprint in Nigeria and does not have a representative here.”

Replying on point of law, Iheanacho argued that the prosecution has done all that is required under the law by serving Binance through the second defendant who is the  only known representative of the from, who is currently in Nigeria physically.

He said: “Service on the first defendant, which the second defendant refused to accept, is a proper service on the first defendant.”

He urged the court to disregard all the submissions made by Mordi in support of Binance when he claimed that he was not representing the company.

Iheanacho added: “By virtue of Section 478 of ACJA, upon the court being shown that the first defendant, a corporation, does not have a representative in court, the court is mandated to enter a plea of not guilty.

“If the company said it was not served, let it come to court and  make that argument, it is  not for a third party to do so on its behalf,” he said.

Iheanacho urged the court to enter a plea of not guilty for Binance and proceed with the case.

Justice Nwite, after listening to arguments by the lawyers, adjourn till April 8 for ruling.

Whistleblowers whose petition led to the summon, detention and ongoing trial of executive of Binance Holdings Limited have raised the alarm over threat to their lives and family. 

They called on the Federal Government to grant them state protection.

The group, under the auspices of Empowerment for Unemployed Youth Initiative and Niger Delta Youth Council, made the call in a letter addressed to President Bola Tinubu in Abuja.

The group claimed they are the petitioners and whistleblowers who unearthed the brazen abuse of the Nigerian Financial system being perpetrated by Binance Holdings Limited.

The letter dated Wednesday 28th, March 2024, was jointly signed by the National Coordinator, Empowerment for Unemployed Youth Initiative, Amb. Solomon Adodo and National Coordinator, Niger Delta Youth Council Engr. Jātor Abido.

The letter reads in part: “We write as the petitioners and whistleblowers that revealed the brazen abuse of the Nigerian Financial system being perpetrated by Binance Holdings Limited to notify you of the present threat to our lives and seek protection

from the State through your express Presidential directive.

“We are presently in deep shock and panic as to how the detainee managed to escape without a trace.

“We are also aware that the Binance Team have a very significant financial war chest which we can never match.

“Our fears also stem from the fact that we blew the lid on the terrorism financing/serious operations carried out through the Binance platform.

“We are therefore at very significant risk alongside our immediate families.

“We have no where else to run to than to the Nigerian government for whom we undertook this daring patriotic task.”

They added: “It should be recalled that after years of scrupulous investigation and fact finding on the operations of Binance in Nigeria, we identified certain grave infractions perpetrated against the Nigerian government and her people.

Read Also: JUST IN: Arraignment of Binance, official stalled

“On the heels of our incontrovertible findings, we sent a petition to the House (of Representatives)

Committee on Financial Crimes against Binance.

“This petition was submitted on 5th December, 2023 by the Empowerment for Unemployed Youth Initiative, Niger Delta Youth Council and 21 other Civil Society Organisations over irregularities perpetrated by Binance Holdings Limited.

“The said petition listed some of the irregularities perpetrated by Binance to include: Violation of the Provisions of the Money Laundering (Prevention and Prohibition) Act, 2022.

“Violation of the provisions of the Investments and Securities Act, 2007 and the Rules on Issuance, Offering Platforms and Custody of Digital Assets (the

“Digital Assets Rules”), May 2022.

“Violation of the relevant provisions of Nigeria’s tax laws, resulting in taxevasion in the country.

“The House Committee on Financial Crimes immediately commenced action by inviting Binance to appear and give clarifications on the allegations.

“Consequently, the Binance Team honoured the summon and came into Nigeria for the first public hearing billed for 10th January 2024.

“The Investigative Hearings of the House led to the unearthing of huge financial

transactions that have been carried out on the Binance platform without appropriate tax payments or any form of regulation.

“The Office of the National Security Adviser also commenced an investigation on Binance thereafter. Subsequently two of the Binance Executives – Nadeem Anjarwalla and Tigran Gambaryan – were invited and detained.

“However, one of the detainees – Nadeem Anjarwalla – escaped from the NSA’s custody since Friday 22nd March 2024.

“We therefore use this medium to call on you to exercise the powers of the State to grant us and our immediate families the security and other forms of protection we require (within and outside Nigeria) till the conclusive outcome of the Binance case as we face very grave danger with our lives at risk.

“We have firm confidence that you will grant this our prayer considering our sacrifice thus far.

“We convey assurances of our highest regards and fervid support for your good government.”

The arraignment of Binance Holdings Limited and two of its executives; Tigran Gambaryan and Nadeem Anjarwalla, on Thursday, could not proceed due to inability of the Federal Inland Revenue Service (FIRS) to effect service of the charge on the defendants’.

When the matter was called for the defendants to take their plea before Justice Emeka Nwite of a Federal High Court, Abuja, only Gambaryan was represented by a lawyer.

The News Agency of Nigeria (NAN) observes that neither the company nor Anjarwalla, who recently escaped from lawful custody, was represented by counsel.

However, Gambaryan’s lawyer, Chukwuka Ikwuazo, SAN, told the court that his client had not been served with the charge, hence, his arraignment cannot proceed.

FIRS lawyer, Moses Ideho, though acknowledged that the agency had not served Gambaryan’s with the charge, he said all efforts to do so proved abortive because the defendant could not be reached at the EFCC’s detention.

Ideho then prayed the court to serve Gambaryan in the open court and the judge directed that the charge be served on him in the dock.

The lawyer, therefore, sought a stand-down of the matter or an adjournment to enable Gambaryan consult with his lawyer.

Ikwuazo did not object to an oral application for adjournment and the matter was adjourned until April 19 for him to take his plea.

NAN had, on March 28, also reported that the Federal Inland Revenue Service (FIRS) will, on April 4, arraigned Binance Holdings Limited, Gambaryan and fleeing Anjarwalla, on allegations bordering on tax evasion.

In the charge marked FHC/ABJ/CR/115/2024, the three defendants will equally be arraigned before Justice Nwite on four counts.

Read Also: Binance chief, others charged with money laundering

NAN reports that the defendants are being charge on a four-count charge bordering on alleged tax evasion.

In the charge dated and filed March 22 by the FIRS, the defendants were alleged to have committed the offence on or about Feb. 1.

Count one alleged that while involved in carrying and offering services to subscribers on their platform, known as Binance, failed to register with the FIRS, for the purpose of paying all relevant taxes administered by the service.

The offences are said to be punishable under Sections 8 and 29 of the VAT Act of 1993 (as Amended), Section 40 of the FIRS Establishment Act, 2007 (as amended) and under provisions of Section 94 of the Companies Income Tax Act (as amended) respectively.

(NAN)

Binance executive Tigran Gambaryan in court for arraignment

Read Also: Binance chief, others charged with money laundering