Nigerian court denies bail to Binance executive, intensifying crypto industry tensions Nigerian court denies bail to Binance executive, intensifying crypto industry tensions
Stakeholders warn that the continued detention of Binance executives in Nigeria could cause reputational damage for the country.
2 min read
Updated: May. 17, 2024 at 4:37 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
A Nigerian High Court has denied bail to Binance executive Tigran Gambaryan, citing concerns that he might flee the country.
Gambaryan, who turned 40 today, has been held by the Nigerian government since February. Speaking on his detainment, Noah Perlman, Binance’s chief compliance officer, said:
“On this very unhappy birthday, a reminder that Tigran Gambaryan has been dedicated to public service and fighting crime for most of his life. These charges against him are completely meritless. He should be freed while discussions continue between Binance and Nigerian government officials.”
Bail denied
The lawyer for the prosecutors, Ekele Iheanacho, firmly opposed Gambaryan’s bail application. He pointed out that the Binance executive recently attempted to obtain a new passport under dubious circumstances, alleging his previous one was stolen.
Iheanacho also argued that Gambaryan has no substantial ties to any community in Nigeria. He further warned that granting bail could lead to Gambaryan absconding.
The judge concurred with the prosecution, emphasizing that the nature and severity of the offense must be considered when deciding on bail.
Reputation damage?
Meanwhile, the ongoing prosecution of Binance and its executives in Nigeria could significantly impact the growth of the emerging crypto industry, experts warn.
Adebayo Juwon, co-founder of Finna Protocol, told CryptoSlate that this situation might discourage Web3 companies from entering Nigeria, perceiving it as hostile to new technologies. Juwon explained:
“Web3 is still at its infancy with a lot of potential to better any countryโs economy, investors are watching, other web3 startups are observing what the government will make of this Binance saga. I must say, the future of web3 in Nigeria is being challenged as the country is now seen as un friendly for emerging technologies.”
Conversely, Oladotun Wilfred, CMO of Flincap, remains optimistic. He believes that any reputational damage can be repaired and that the conflict will not hinder crypto adoption in Nigeria. Wilfred stated:
“The country might not get a positive image from the international crypto market from these events. However, it is not the worst thing that could happen. The country has bounced back from even worse situations. We can turn it around by projecting the fact that we are one of the biggest users of cryptocurrency and adopters of blockchain across the globe. It is normal to have a few controversies in a place where there is so much massive growth.”
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
