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Tag: Binance

  • Court orders sick Binance executive be taken to hospital

    Court orders sick Binance executive be taken to hospital

    A Federal High Court, Abuja, on Thursday, ordered the management of the Nigerian Correctional Service (NCoS) management in Kuje, FCT, to take the ailing and detained Binance executive, Tigran Gambaryan, to a hospital for a medicare.

    Justice Emeka Nwite gave the order following an application by Gambaryan’s counsel, Mark Mordi, SAN, that his client was suffering from a deteriorating health condition which needed prompt medical attention.

    The Economic and Financial Crimes Commission (EFCC) had sued Binance Holdings Limited and Gambaryan as 1st and 2nd defendants.

    In the five-count money laundering charge, Nadeem Anjarwalla, another agent of the company, was listed as being at large.

    They were accused to have allegedly conspired amongst themselves to conceal the origin of the financial proceeds of their alleged unlawful activities in Nigeria including 35,400, 000 dollars.

    They were alleged to have committed an offence contrary to Section 21 (a) and punishable under Section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022, among others.

    However, Anjarwalla escaped from lawful custody on March 22 and fled Nigeria for Kenya.

    Mordi, while moving the motion, had sought an order of the court directing the correctional centre to allow Gambaryan to be treated in Nizayime Hospital, Abuja.

    The EFCC’s lawyer, Ekele Iheanacho, although did not oppose the application that the defendant be treated in a hospital, he however disagreed that Gambaryan be specifically treated in Nizayime Hospital suggested by Mordi.

    Responding, Mordi, who said they were interested in a medical facility where his client could be properly taken care of, said the company would be the cost.

    According to him, the 2nd defendant is worth more to them if he is alive.

    He said only a person who is living can stand trial.

    The senior lawyer equally applied for the medical report of a medical examination conducted on his client .by the prison authority.

    Iheanacho insisted that the court should be mindful of making a specific order directing the correctional centre to allow him to be treated in Nizayime Hospital.

    He argued that the centre should take him to any hospital that would attend to him adequately so long the authority could ensure his security.

    He also applied for the medical report to be issued and delivered to the anti-graft agency.

    Mordi then rephrased his request and urged the court to make an order allowing Gambaryan to be treated in Nizayime Hospital or any other hospital which the correctional centre deemed.

    Delivering the ruling, Justice Nwite granted the request.

    “An order of this honourable court is hereby made that the 2nd defendant be allowed to be treated in Nizayime Hospital or any other hospital within jurisdiction which the Correctional Service Centre deems fit provided the Correctional Service Authority shall provide adequate security for the 2nd defendant within the period the 2nd defendant stays in the hospital,” he said.

    The judge also ordered the correctional service authority to issue and deliver to both the prosecution and defendant’s counsel Gambaryan’s medical report based on the medical examination conducted on him fortnight ago.

    Earlier, a mild drama ensued in the court when Gambaryan slumped in the open court over alleged ill-health.

    The development occurred shortly after the matter was called for trial continuation.

    Mordi told the court that although the matter was slated for cross-examination of the 1st prosecution witness (PW1), he sought an adjournment, citing Gambaryan’s ill-health.

    He said they managed to bring the defendant to court for the court to know his true health condition.

    Counsel to Binance Holdings Limited, Fagbohunlu, informed the court that a subpoena had been issued to Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC) to release some documents to them in preparing for their defence.

    He prayed the court for an order directing the government agencies to release the documents to them before the next adjourned date.

    Iheanacho told the court that he was unaware of the application as he was yet to be served with the documents.

    In the ruling, the judge directed the EFCC to make sure that the subpoena served on CBN and SEC were complied with.

    Justice Nwite subsequently adjourned the matter until June 20 and June 21 for cross-examination of the PW1.

  • BREAKING: Drama as Binance executive collapses in court

    BREAKING: Drama as Binance executive collapses in court

    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.

    It was observed that throughout the proceeding, the cryptocurrency firm’s agent rested on the arm of the seat where he was sitting.

    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.

  • SEC Director reveals how Binance breached Nigerian laws

    SEC Director reveals how Binance breached Nigerian laws

    A Director with the Security and Exchange Commission (SEC), Abdulkadir Abbas, on Friday, told a Federal High Court, Abuja how Binance Holdings Ltd breached the Nigerian law to operate naira peer-to-peer services in exchange of crypto assets.

    Abbas, the Director of Registration, Exchanges and Market Infrastructure Department at SEC, disclosed this while testifying before Justice Emeka Nwite in the trial of Binance and two of its officials on a charge bordering on money laundering.

    Abbas, the 1st prosecution witness (PW1), said that due to the large number of Nigerian users, who were leveraging on the 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,” he added.

    The Economic and Financial Crimes Commission (EFCC) had filed a 5-count charge against Binance and Tigran Gambaryan as 1st and 2nd defendants, while listing Nadeem Anjarwalla as being at large.

    Led in evidence by prosecuting lawyer, Ekele Iheanacho, Abbas said the operations of company negatively impacted Nigeria’s financial system.

    The director, who is the 1st prosecution witness (PW1), told the court 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.

    “At the meeting, it was clearly observed that the 1st defendant (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 1st defendant operates a naira peer-to-peer (P2P) in exchange of crypto assets.

    “The naira P2P being deployed in the transaction, circumvent 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,” he said.

    According to him, the naira P2P model created uncertainty and high level of volatility in the exchange rate as Nigerian users trade arbitrarily on the platform, thereby impacting negatively on 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 PW1 said

    He added that the rate at which naira was being sold on Binance’s platform had no 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.

    He said by operating its platform, which was 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 authorisation by the SEC, the 1st defendant violated the Investment and Security Act,” the witness said.

    At the conclusion of his evidence-in-chief, lawyer to Binance, Babatunde Fagbohunlu, SAN, said he needed to retrieved 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 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 might be difficult to have it approved if the case was stood down.

    Justice Nwite elected to adjourn till May 23 at 12 noon for cross examination.

    Anjarwalla, who was in lawful custody with Gambaryan, escaped and fled the country on March 22.

  • FIRS files amended charge against Binance

    FIRS files amended charge against Binance

    The Federal Inland Revenue Service (FIRS) has filed an amended four-count charge against Binance Holdings Limited and its executive, Tigran Gambaryan, on alleged tax evasion.

    FIRS lawyer, Moses Ideho, made this known on Friday before Justice Emeka Nwite of a Federal High Court, Abuja.

    Ideho informed the court that following the escape of Nadeem Anjarwalla from lawful custody, the agency deemed it necessary to amend the charge to properly reflect Anjarwalla’s position in the instant charge, as being at large.

    “We apply to substitute our charge dated 22nd of March, 2024 with an amended charge dated 17th of May, 2024.

    “We apply that the charge be read to the 1st and 2nd defendants (Binance and Gambaryan) in order to take their plea,” he prayed

    But counsel for Binance, Chukwuka Ikwuazo, SAN, who also appeared for Gambaryan, opposed to Ideho’s application that the fresh charge be read to his clients.

    Ikwuazo argued that the charge was just being filed this morning and he was yet to see it in order to consult with his clients so as to prepare for their defence.

    Justice Nwite subsequently adjourned the matter until May 22 for arraignment.

    Earlier, the judge, in a ruling, ordered that the FIRS to serve the company (1st defendant) through Gambaryan (2nd defendant) the charge in the matter.

    Justice Nwite held that Gambaryan, being the Binance Chief Financial Compliant Officer, ought to be served with the charge as the company’s representative in Nigeria in accordance with the law.

    He discountenabce the arguement of Ikwuazo that Gambaryan was neither a director, secretary or chief agent of the crypto-currency firm.

    The court had fixed their arraignment for April 4.

    However, the arraignment could not proceed due to inability of FIRS to effect service of the charge on the defendants.

    The defendants are being charged on a four counts bordering on alleged tax evasion in the charge marked: FHC/ABJ/CR/115/2024.

    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.

  • Reps assure of comprehensive probe of Binance

    Reps assure of comprehensive probe of Binance

    The House of Representatives Committee on Financial Crimes has assured of a comprehensive investigation on the activities of Binance, a crypto currency platform in Nigeria.

    The Chairman of the Committee, Rep. Ginger Onwusibe (LP-Abia) said this when he addressed newsmen on Tuesday in Abuja.

    He said that the committee would not be distracted from carrying out the probe by the baseless bribery allegations levied by Binance saying it would remain focused on its mandate.

    The chairman said that no member of the committee of staff approached Binance for anything.

    “I want to assure all Nigerians of the integrity, transparency and competence of the House of Representatives Committee on Financial Crimes which I have the privilege and honor to chair.

    “We refuse to be diminished or deflated by the shenanigans of Binance and other enemies of Nigeria.

    “The committee will continue with its functions and assignments undeterred; we recognise that the blackmail by Binance is merely an attempt to distract and draw attention away from the serious allegations of criminality against it which is now compounded by its role in the security breach of the sovereign Nigeria.

    “The committee will continue with its legitimate functions as indicated and will update the relevant authorities, the general public and the media as the need arises,” he said.

    Onwusibe said that the committee was investigating Bianance on alleged tax evasion having operated illegally in Nigeria and generating billions of dollars in profits with zero tax remittance.

    He said that other allegations included providing a platform for money laundering activities and illegal transfer of funds to foreign shores.

    He said that Bainance allegedly provided a platform for terrorism financing, enabling terrorists and enemies of the Nigeria receive ransoms without trace thus facilitating purchase of sophisticated arms and weapons.

    The rep also said that cryptocurrency platform allegedly manipulated the Nigerian Forex space which led to a sharp spike in the price of foreign currencies against the Naira and operated outside the regulations of the Securities and Exchange Commission (SEC)

    Onwusibe said that the committee would also look into the circumstances surrounding the escape of Bainace executives from lawful custody and how they left the country.

    He said that relevant government agencies were also investigating activities of Bainace saying that the probe by the committee was by no means a witch-hunt.

    Some social media reports had indicated that agents of the committee approached Binance’s representatives demanding for a bribe of 140 million dollars to close the case.

  • Reps to probe Binance executive escape from custody

    Reps to probe Binance executive escape from custody

    The House of Representatives has resolved to probe the circumstances that led to the escape of Mr Nadeem Anjarwalla, an executive of a crypto currency exchange company, Binance.

    This followed the adoption of a motion by Rep. Dominic Okafor (LP-Anambra) during plenary on Wednesday in Abuja.

    It would be recalled that the Federal Government had arrested and detained Anjarwalla, on Feb. 26, for alleged complicity of the company in money laundering and terrorism financing.

    The two Binance officials were billed to appear in court on April 4, to answer to the alleged crimes against Nigeria before the security breach occurred.

    The lawmaker said that the escape of the Binance executive from the office of the NSA using a “smuggled passport” was most disappointing, embarrassing and disturbing.

    He said that it portrayed the porous nature of the security architecture of the country to the world.

    The House also mandated the Director-General, Department of State Services (DSS), to take over the investigation and prosecution of personnel found complicit in the escape of Anjarwalla.

    The House also mandated the committees on Financial Crimes, NSA and Intelligence and Interior to ensure compliance and report to the House in two weeks.

  • FG denies officials demanded $150m in crypto from Binance

    FG denies officials demanded $150m in crypto from Binance

    The Federal Government says the bribery allegation by Binance is a diversionary strategy to run away from their wrong doings.

    The Minister of Information and National Orientation, Alhaji-Mohammed Idris made this known in a statement issued by his media aide, Mr Rabiu Ibrahim on Wednesday in Abuja.

    According to the Minister, the Federal Government is aware of attempts by Binance to launder its impaired image as an organisation that does not play by the rules and laws guiding business conduct in sovereign nations.

    “The Organisation made false allegations of bribery against unidentified Nigerian Government officials, who it claimed, demanded 150 million dollar in cryptocurrency payments to resolve the ongoing criminal investigation against the company.

    “This claim by Binance lacks any iota of substance. It is nothing but a diversionary tactic and an attempted act of blackmail by a company desperate to obfuscate the grievous criminal charges it is facing in Nigeria.

    “While this lawful investigation was going on, an executive of Binance, who was in court-sanctioned protective custody, escaped from Nigeria, and he is now a fugitive from the law.

    “Working with the security agencies in Nigeria, Interpol is currently executing an international arrest warrant on the said fugitive.

    “The phantom bribe claim is part of an orchestrated international campaign by this company that is facing criminal prosecution in many countries including the United States, to undermine the Nigerian Government,” Idris said.

    The Minister recalled that, a week back, the founder and former CEO of Binance, Changpeng Zhao, was sentenced to prison in the United States, after pleading guilty to charges very similar to what Binance was being investigated for in Nigeria.

    He added that Zhao agreed to pay a fine of 50 million Dollar, while Binance is liable for 4.3 billion Dollar in fines and forfeitures to the US Government.

    “We would like to remind Binance that it will not clear its name in Nigeria by resorting to fictional claims and mudslinging media campaigns.

    “The only way to resolve its issues will be by submitting itself to unobstructed investigation and judicial due process.

    “The Federal Government will continue to act within its laws and international norms, and will not succumb to any form of blackmail from any entity, local or foreign,” Idris stressed.

  • Bail plea of Binance executive moved to May 17

    Bail plea of Binance executive moved to May 17

    A Federal High Court Abuja, on Tuesday, fixed May 17 for a ruling on a bail application filed by the detained Binance executive, Tigran Gambaryan.

    Justice Emeka Nwite fixed the date after counsel for the Economic and Financial Crimes Commission (EFCC) and Gambaryan’s lawyer, Mark Mordi, SAN, adopted their processes and argued their case against and for the bail plea.

    The judge had ordered the remand Gambaryan in Kuje Correctional Centre after he pleaded not guilty to the money laundering charges preferred against him by the EFCC.

    The EFCC had accused Binance Holdings Limited, Gambaryan and Nadeem Anjarwalla, another agent of the company, of allegedly conspiring amongst themselves to conceal the origin of the financial proceeds of their alleged unlawful activities in Nigeria including $35,400, 000.

    They were alleged to have committed an offence contrary to Section 21 (a) and punishable under Section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022, among others.

    However, Anjarwalla escaped from lawful custody on March 22 and fled Nigeria for Kenya.

    At the resumed hearing, Mordi told Justice Nwite to grant his client’s bail, arguing that the EFCC had failed to produce any credible evidence to oppose his application.

    According to him, the complainant’s allegation that Gambaryan was arranging to escape from custody like his colleague was false.

    “There is no exhibit or document displaying EFCC’s credible intelligence.

    Iheanacho said the court would be taken a grave risk by granting the Binance agent a bail because he had no attachment to any community in Nigeria or competent person to stand as his surety.

    He contended that Gambaryan attempted to apply for a new United States passport while in detention knowing fully well his International passport was seized by the Nigerian state.

    The lawyer said he was a flight risk and that if granted bail, he would jump bail like his colleague.

    He disagreed with Mordi that the commission had not provided credible evidence that Gambaryan was planning to escape.

    He said going by the deposition in their counter affidavit, the deponent was one of the investigative team that investigated the case.

    He urged the court to dismissed the bail application.

    In the alternative, he advised the court to return the applicant to EFCC custody if the judge decides to grant him bail.

    Justice Nwite then fixed May 17 for ruling.

  • Binance executive set for bail today

    Binance executive set for bail today

    A Federal High Court, Abuja, on Monday, adjourned hearing in the bail application of the detained Binance executive, Tigran Gambaryan, until April 23 (today).

    Justice Emeka Nwite adjourned the hearing following an oral application by counsel for the Economic and Financial Crimes Commission (EFCC), Ekele Iheanacho, seeking more time to respond to a further affidavit served on him in the open court by Gambaryan’s lawyer, Mark Mordi, SAN.

    At the resumed proceedings, Iheanacho told the judge that he was served with another further affidavit by Mordi.

    “I don’t know the content so I need to know the content,” he said.

    But Mordi argued that both parties could immediately respond to the application so that the bail plea could be heard.

    ”My client has been in detention, honestly, what is fair is fair.

    “The man’s liberty is at stake, I won’t mind my lord, if you can stand down the matter so we can go through the processes, reply, and then we proceed,” Mordi said.

    Justice Nwite, who adjourned the matter in the interest of justice, said counsel are entitled to respond to each others’ processes within the constitutional stipulated time frame.

    The judge had ordered the remand Gambaryan in Kuje Correctional Centre after he pleaded not guilty to the money laundering charges preferred against him by the EFCC.

    The EFCC had accused Binance Holdings Limited, Gambaryan and fleeing Nadeem Anjarwalla, another agent of the company, of allegedly conspiring amongst themselves to conceal the origin of the financial proceeds of their alleged unlawful activities in Nigeria including $35,400, 000.

    They were alleged to have committed an offence contrary to Section 21 (a) and punishable under Section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022, among others.

  • Arraignment of Binance, executives suffers setback

    Arraignment of Binance, executives suffers setback

    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.

    It was observed 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.

    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.

    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