A Federal High Court in Abuja, on Friday, denied the bail application of a cryptocurrency firm executive, Tigran Gambaryan.
Justice Emeka Nwite, while delivering the ruling, held that the bail application was refused as he had carefully gone through the application submitted before him and resolved that the defendant would jump bail if granted.
“I have carefully considered the affidavit evidence before me and I am of the view that the applicant will jump bail if granted bail,” he said.
Justice Nwite held that the 2nd defendant (Gambaryan) was in the same room as the 3rd defendant (Anjarwalla) when he absconded, but did not deem it fit to report his escape to the security operatives in whose custody they were detained at the time and when he was asked about Anjarwalla’s whereabouts, he replied that he was sleeping, meanwhile he had escaped.”
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He stated that while Gambaryan’s international passport, the one he used in coming into Nigeria was in the coffers of the EFCC, he attempted to secure a new one by applying to the U.S Embassy on the pretence that he had lost it.
The judge further agreed with EFCC’s submission that Gambaryan, is of dual nationalities, American and Armenian, by birth and this is an indicator that he would flee like his counterpart Anjarwalla, who is Irish and Kenyan and fled with his Kenyan passport even when his Irish passport was with the EFCC.
He also said Gambaryan is a foreigner with no family ties, attachments, or roots whatsoever in Nigeria or a reason to stay back for his trial and not abscond if granted bail.
After the judge denied the 2nd defendant’s bail request, the court immediately commenced trial proceedings in the matter.
EFCC counsel, Ekele Iheanacho, called the first witness to the witness stand, who introduced himself as Abdukadiri Abbas, Director of Exchange and Market Infrastructure, Security and Exchanges Commission.
The witness stated that he had met Gambaryan once before today in a meeting held at the office of the National Security Adviser, Nuhu Ribadu, and he knew about Binance via their website.
“I know the 1st defendant through its website, Binance. The 2nd defendant, I met once in the office of the National Security Adviser on the operations of the company and how it affects the financial market. When we met him, it was for a meeting. We discussed the 1st defendant’s operation in Nigeria”.
He added that Binance is operating a virtual training department where they make pleas to Nigerian investors to subscribe.
He explained that the executives were invited “To discuss its operations and its impact on the Nigerian economy. At the meeting, it was observed that the 1st defendant’s mode of operation was against the provision of the Investment and Securities Act 2007. Aside from not getting registered and making public solicitations, the 1st defendant operates a naira peer-to-peer in exchange for crypto assets.
“The naira P2P being deployed in the transaction circumvents the normal trading route.
“This is because the Central Bank of Nigeria has banned banks from providing certain settlement platforms for crypto exchange.
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“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.
“The Binance platform became a reference point for determining the exchange rate”, Abbas said.
Speaking further he said, “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 was 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.
