The Federal High Court in Abuja on Thursday dismissed a compensation suit filed by former Binance Head of Financial Crime Compliance, Tigran Gambaryan, against Nigeria’s Office of the National Security Adviser (NSA) and the Economic and Financial Crimes Commission (EFCC) over what his legal team described as alleged “prolonged detention” in Nigeria.
Justice Umar Mohammed dismissed the case, ruling that the court would not, under the guise of Gambaryan’s fundamental rights claims, “interfere” with the prosecutorial role of the Nigerian authorities in investigating suspected foreign exchange violations and alleged money laundering involving the cryptocurrency platform.
Nairametrics reports that the suit filed by Gambaryan sought costs against the NSA and EFCC over his alleged prolonged detention by security operatives in connection with the Federal Government’s money laundering and foreign exchange contravention allegations against Binance.
Legal Dispute
Nairametrics previously reported that on June 19, 2024, Gambaryan’s counsel, Tonye Krukrubo (SAN) and Sunday Agaji, informed the court of their amended originating motion seeking enforcement of their client’s fundamental rights in the suit marked FHC/ABJ/CS/356/2024.
Gambaryan’s lawyer had asked Justice Inyang Ekwo to compel the NSA and EFCC to apologise for his client’s detention in the country.
In his initial fundamental rights suit, Gambaryan alleged that the Federal Government was using his prolonged detention “as leverage to continue making demands on Binance.”
The lawyer further informed the court that his client, an American citizen, visited Nigeria on February 26, 2024, alongside Nadeem Anjarwalla, solely to honour an invitation from 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 honouring the invitation, his client, who is not a board member of Binance, was detained.
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 to 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 and preliminary objection dated July 2, 2024, and seen by Nairametrics on February 5, 2025, counsel Olanrewaju Adeola drew the court’s attention to Suit and Charge No. FHC/ABJ/CR/138/2024 — Federal Republic of Nigeria v. Binance Holdings Ltd & Anor — filed on March 28, 2024, and currently pending before Justice Emeka Nwite.
The case before Justice Nwite involves allegations of money laundering and foreign exchange violations against Binance.
Adeola urged the court to dismiss the suit for being a gross abuse of court process, noting the need to consider the facts presented in Justice Nwite’s proceedings to ensure a just decision.
He further argued that a remand order had been issued against Gambaryan during the period in question.
Court Judgment
Delivering judgment on Thursday, Justice Umar observed that criminal charges in the case of FG vs. Binance & Others were filed in 2024 and are still pending.
- He noted from the affidavits before the court that the applicant appeared for arraignment before Justice Emeka Nwite and was subsequently remanded at a correctional centre.
- The judge further pointed out that Gambaryan’s bail application was dismissed by the court on the grounds that he was “a flight risk.”
- Justice Umar held that affidavits submitted by the EFCC and NSA established that the NSA received intelligence reports on alleged FX contravention and money laundering involving Binance and its officials.
- He stated that “fundamental rights are not absolute” and may be curtailed when circumstances require.
- The court agreed that the NSA acted within its mandate under the law.
“No court has the power to stop the investigative powers of the police or EFCC,” Justice Umar ruled, adding that the charge against Binance remains pending before Justice Nwite.
- The judge also stated that Gambaryan provided no evidence showing he enjoys immunity from prosecution in Nigeria or under Nigerian law.
- The court finally held that Gambaryan’s application constituted an abuse of court process and dismissed it.
Backstory
In early 2024, the Federal Government of Nigeria accused cryptocurrency exchange Binance of influencing foreign exchange (FX) rates, leading to increased regulatory and legal scrutiny of crypto trading platforms.
On February 28, 2024, Nigerian authorities detained two senior Binance executives:
- Nadeem Anjarwalla, 37-year-old British-Kenyan and Regional Manager for Africa, and
- Tigran Gambaryan, 39-year-old American and then Head of Financial Crime Compliance at Binance.
Both executives filed fundamental rights suits against Nigerian government agencies, citing violations of their constitutional right to liberty.
Anjarwalla’s case was later struck out for lack of diligent prosecution.
The duo was also charged by the EFCC and the Federal Inland Revenue Service (FIRS), alongside Binance, with tax evasion, FX contravention, and money laundering.
Anjarwalla later escaped from detention and fled the country, while Gambaryan remained in custody based on a court order.
The FIRS and EFCC subsequently amended their charges, naming Binance as the sole defendant.
Gambaryan was eventually released by the Nigerian government on health grounds.
