Binance executive in court for arraignment over ‘money laundering’

Tigran Gambaryan, Binance’s head of financial crime compliance, has arrived the federal high court in Abuja for arraignment over allegations of money laundering.

On February 28, Gambaryan and Nadeem Anjarwalla, Binance’s regional manager for Africa, were detained by the Nigerian authorities.

Although Anjarwalla escaped from the custody of the office of the national security adviser (ONSA), both executives, alongside Binance, are expected to be charged by the federal government for tax evasion and money laundering on Thursday.

Wearing a black T-shirt on green pants, Gambaryan was brought into court at about 9:19 am by officials of the Economic and Financial Crimes Commission (EFCC).

When the case was called, Moses Ideho, the prosecution counsel, said they were unable to effect service on Gambaryan because they could not gain access to him.

“My lord, the prosecution has not been able to serve a copy of the charge on the second defendant (Gambaryan),” Ideho said.

“As a result, we mobilised the court bailiff to serve the second defendant but he was denied access, too.”

Thereafter, Ideho prayed the court to allow him to effect service on the defendant in court.

COURT FIXES APRIL 8 FOR HEARING

The court subsequently fixed April 8 to rule on whether or not the arraignment of Binance Holdings Limited and Gambaryan, over allegations of money laundering, can take place.

The arraignment which was initially scheduled for Thursday was stalled due to concerns over the non-service of the charge on the cryptocurrency firm.

Gambaryan and Binance are the only defendants in the money laundering charge.

At the commencement of hearing, Mark Mordi, counsel to Gambaryan, opposed the arraignment.

Mordi said the proposed arraignment cannot go on since the first defendant was not served with the court processes.

However, E.E Iheanacho, EFCC counsel, said the prosecution attempted to serve the processes on the first defendant through the second defendant but Gambaryan refused to accept service.

Citing section 478 of the Administration of Criminal Justice Act (ACJA), Iheanacho said since Gambaryan is the only representative of Binance in Nigeria, he ought to have accepted the processes.

“We attempted to serve the first defendant through the second defendant but he refused service,” the prosecutor said.

“Whether he accepts or not, the court can enter a not-guilty plea for the first defendant.

“We refer the honourable court to the proof of evidence that the second defendant is a representative of the first defendant in this country.

“It is not in the position of the counsel for the second defendant who has not announced appearance for the first defendant to seek to challenge the arraignment on the ground that the first defendant has not been served.”

But Mordi said his client is not in the position to represent Binance without formal authority.

“What I was submitting was that the second defendant was not in the position to accept service for the first defendant. He lacks the authorisation,” he said.

“On a community reading of Section 123, 477, 478 of ACJA, there is a mandatory process that should occur when criminal proceedings are triggered

“The company will appoint a representative in writing. It is only then that service or processes posed to the instrument of appointment, that an agent may be in the position to receive processes on behalf of the company.”

After hearing submissions by lawyers, Emeka Nwite, presiding judge, fixed April 8 for ruling.