A Federal High Court in Abuja has ordered that a top official of Binance Holdings Limited, Tigran Gambaryan be remanded in Kuje prison.
Justice Emeka Nwite issued the order on Monday shortly after Gambaryan was arraigned and he pleaded not guilty to the five-count money laundering charge brought against him and two others.
Also named as defendants in the charge marked: FHC/ABJ/CR/138/2024 filed by the Economic and Financial Crimes Commission (EFCC) are Binance Ltd and another official of the firm, Nadeem Anjarwalla (now at large).
A plea of not guilty was also entered on behalf of Binance Ltd.
The prosecuting lawyer, Ekele Iheanacho subsequently 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 alternatively, remand Gambaryan in the custody of the EFCC pending the determination of the bail application.
Ruling, Justice Nwite ordered that Gambaryan should be held in prison untill 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 overruled Gambaryan’s lawyer, Mark Mordi (SAN) on the objection he raised against Gambaryan’s arraignment.
Mordi had on Thursday, queried the propriety of arraigning his client when the first defence, Binance was, according to him, yet to be properly served with the charge.
He 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.
Iheanacho faulted Mordi and argued that the prosecution has done all that was required under the law by serving Binance through the second defendant (Gambaryan)
who is the only known representative of the from, who is currently in Nigeria physically.
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 on Monday Justice Nwite held among others, that the objection raised on behalf of Gambaryan was without merit.
The judge noted that from Gambaryan’s affidavit attached to his bail application, the second defendant 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 held that all the prosecution needed to do was to establish that the person being served is an agent of Binance.
The judge observed 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.
“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,” Justice Nwite said.
The EFCC , in the charge, accused the defendants concealing of the origin of a cumulative sum of $35,400, 000 generated as revenue by Binance in Nigeria, knowing that the funds constituted proceeds of unlawful activity.
Some of the counts in the charge read:
*That you, Binance Holdings Ltd (aka Binance) between January, 2022 and January, 2024 in Abuja, not being an authorized dealer in Nigeria’s Autonomous Foreign Exchange Market used your virtual asset services platform to unlawfully negotiate foreign exchange rates in Nigeria and you thereby committed an offence contrary to and punishable under section 29(1)(c) of the Foreign Exchange (Monitoring And Miscellaneous Provisions) Act.
*That you, Binance Holdings Ltd (aka Binance), Tigran Gambaryan and Nadeem Anjarwalla (now at large) and other persons at large, between January, 2023 and January, 2024 in Abuja, conspired amongst yourselves to conceal the origin of the proceeds of your unlawful activities and thereby committed an offence contrary to section 21 (a) and punishable under section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022.
