The Federal High Court, Abuja, has fixed March 20, 2025, to hear motions and processes associated with a pending compensation request case instituted by a Binance executive, Tigran Gambaryan, against the Office of the National Security Adviser (NSA) and the Economic and Financial Crimes Commission (EFCC).
The case seeks the award of “costs” against the NSA and EFCC over his alleged prolonged detention in Nigeria by security operatives in connection with the Federal Government’s money laundering and foreign exchange contravention allegations against Binance, a renowned cryptocurrency platform.
Justice Inyang Ekwo fixed the new date on Wednesday after hearing from Gambaryan’s lawyer, Sunday Agaji, regarding the stage of the exchange of court processes in the matter.
Facts of the Case
Nairametrics previously reported that on June 19, 2024, Gambaryan’s lead counsel, Tonye Krukrubo (SAN), announced before the court his proposed amended originating motion for the enforcement of his client’s fundamental rights in the suit marked FHC/ABJ/CS/356/2024.
- Gambaryan’s lawyer had, in his initial fundamental rights suit, asked Justice Inyang Ekwo to compel the NSA and the EFCC to apologize for his client’s detention in the country.
- Gambaryan had earlier disclosed in his initial fundamental rights suit that the federal government was using his continued detention at the time “as leverage to continue making demands on Binance.”
- In his grounds of application, Krukrubo explained to the court that his client is an American citizen who visited Nigeria on February 26, 2024, along with Nadeem Anjarwalla, solely to honor an invitation by Mr. Saad Abubakar of the NSA and Mr. Olalekan Ogunjobi of the EFCC for a meeting with government officials as representatives of Binance.
He added that after honoring the invitation, his client, who is not a board member of Binance, was detained.
In his amended originating motion, Krukrubo further sought “the costs of this action on a full indemnity basis,” in addition to other reliefs contained in the suit.
A party seeking an indemnity costs order is literally seeking compensation against a party over the expenses and inconvenience associated with the litigation.
The senior lawyer urged the court to hold that “The unlawful detention of the applicant (Gambaryan) by the respondents from February 26, 2024, to February 27, 2024 (period of detention before the remand order), and from March 12, 2024, to April 8, 2024 (period of detention after the remand order expired, until arraignment) has caused immense hardship and emotional stress on the applicant, his wife, children, and other members of his family.”
However, the respondents countered Gambaryan’s submissions on June 21, 2024.
In the EFCC’s motion dated July 2, 2024, and seen by Nairametrics on February 5, 2025, Olanrewaju Adeola asked the court to grant leave to the respondents to file a further counter-affidavit to the applicant’s amended originating motion.
He submitted that there are facts that the respondents did not include in the counter-affidavit previously filed before the court.
He stated that these facts relate to this suit and charge Number. FHC/ABJ/CR/138/2024 in the case of Federal Republic of Nigeria v Binance Holdings Ltd & Anor (the applicant in this suit), which was filed on March 28, 2024, and is pending before Honourable Justice Emeka Nwite.
The case before Nwite involves alleged money laundering and foreign exchange contravention alleged against Binance.
He emphasized the importance of presenting the facts in Nwite’s proceedings before the court to ensure a just decision.
Gambaryan’s amended processes were granted by the court.
What Transpired in Court
- At the resumption of proceedings on Wednesday, Sunday Agaji announced his appearance for Gambaryan, but there was no legal representation for the NSA and EFCC.
- The judge asked Agaji whether he had received any court processes from the respondents.
- He responded in the affirmative, stating that the respondents had filed their formal response to his amended originating motion on notice, as well as a further counter-affidavit.
- The lawyer said he had also filed a further affidavit and noted the need for parties to regularize a number of their processes in the matter.
“That means the matter is not ripe for hearing,” the judge responded.
- The judge then adjourned the case to allow the respondents to move their motions, and if granted, to allow Gambaryan’s counsel to formally respond.
- The judge stressed that the NSA and EFCC had filed processes in respect of Gambaryan’s substantive matter and were seeking an extension of time to file additional responses against the claims.
- Agaji responded that he had taken the necessary steps regarding his formal response to the motion from the respondents.
- The judge subsequently adjourned the case to March 20, 2025.
Backstory
In early 2024, the federal government of Nigeria accused the Binance cryptocurrency exchange platform of influencing foreign exchange (FX) rates, leading to stricter regulatory and legal oversight of crypto trading platforms.
- Following the federal government’s ban on cryptocurrency channels as part of a campaign against currency speculation, Binance executives visited Nigeria for a meeting.
- On February 28, 2024, Nigerian authorities detained two senior Binance executives: Nadeem Anjarwalla, a 37-year-old British-Kenyan who serves as the regional manager for Africa, and Tigran Gambaryan, a 39-year-old American who is the head of financial crime compliance at Binance.
- Nairametrics reports that the executives eventually filed a fundamental rights case against Nigerian government agencies, citing a violation of their constitutional right to liberty.
The duo was also sued by the EFCC and the Federal Inland Revenue Service (FIRS), alongside Binance, on charges of tax evasion, foreign exchange contravention, and money laundering.
Anjarwalla later fled Nigeria while in detention, while Gambaryan remained in detention based on a court order.
The FIRS later amended its charges, naming Binance as the sole defendant.
- This development followed the confirmation of a Nigerian representative from Binance in the FIRS case.
- Gambaryan’s bail applications were denied twice by the court, which aligned with the EFCC’s position that he was a flight risk at the time.
- However, Gambaryan’s family and the United States government continued to raise concerns about his health, urging the federal government, particularly the EFCC to release him and pursue its case against Binance.
On October 23, 2024, Justice Emeka Nwite discharged Tigran Gambaryan from money laundering charges filed by the EFCC.
Justice Nwite discharged Gambaryan on health grounds, corroborated by the EFCC.
- The EFCC informed the court that the case could not proceed due to Gambaryan’s health condition, which, according to the commission, had been managed by the state.
- The commission stated that a report from the Nigerian Correctional Service, through the NSA, indicated that Gambaryan’s health had deteriorated to the extent that he could hardly walk without assistance and suffered from other health issues.
The EFCC’s case against Binance is still pending.
