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A Binance compliance executive is relieved of criminal charges in Nigeria, the FBI arrests a man for hacking an SEC social media account to inflate the price of Bitcoin, and India is considering banning crypto (again).
Tigran Gambaryan, head of financial crime compliance at Binance, is a free man once again after Nigerian prosecutors abruptly decided to drop all charges against him.
Gambaryan, a US citizen who had been detained in Nigeria since February, was facing criminal charges of money laundering and currency manipulation, involving up to $34.4m of Binance revenue.
On Wednesday (October 23), the Federal High Court in Abuja discharged Gambaryan following a request from the Economic and Financial Crimes Commission (EFCC) to drop the case.
The EFCC is the agency that initially filed the charges against Gambaryan and against Binance as a corporate defendant.
R.U. Adaba, a lawyer representing the EFCC, cited diplomatic interventions and Gambaryan’s lack of direct involvement in the alleged crimes as reasons for the agency’s decision.
She also cited Gambaryan’s worsening health, noting that “he can barely walk without a wheelchair or crutches”, and also suffers from “other ailments”.
“A surgery had been recommended,” she said, and the recovery process “may take some time that may impact on the pace of the trial”.
In a statement provided to Vixio, Binance CEO Richard Teng welcomed Gambaryan’s release.
"We are deeply relieved and grateful that Tigran Gambaryan has finally been released after enduring nearly eight months of detention in Nigeria,” he said.
“Throughout this difficult period, Tigran has shown immense strength, and we commend his resilience in the face of such severe adversity.
“Binance remains committed to collaborating with global regulators to ensure compliance and transparency in the evolving digital asset space.
“We are eager to put this episode behind us and continue working toward a brighter future for the blockchain industry around the world.”
According to Nigeria’s Premium Times, Gambaryan’s release follows several months of “intense” behind-the-scenes negotiation between US and Nigerian government officials.
In June, as covered by Vixio, 16 US lawmakers wrote to President Joe Biden to demand that the White House treat the situation as hostage-taking.
Later, in August, Gambaryan’s wife, Yuki, published a video statement on YouTube revealing the full extent of Tigran’s physical deterioration, alongside a plea to the Nigerian government for his release.
"Between bouts of malaria, pneumonia and the unimaginable mental toll of his detention, he is now reaching the point of no return," she said. “He needs immediate medical treatments or risks permanent damage.”
At the time, Yuki said that Gambaryan was already unable to walk, and that the staff at Kuje prison had refused to provide him a wheelchair.
This meant that US Embassy officials lost access to Gambaryan because he could not physically walk to the visitor area to meet them, she said.
Gambaryan’s release leaves Binance as the sole defendant in the EFCC’s case against the world’s largest crypto exchange.
The agency accuses Binance of facilitating the laundering of money linked to fraud, ransomware and terrorist financing, and of crashing the value of Nigeria’s currency, the naira, while enabling illegal capital outflows.
Man arrested for hacking SEC X account to manipulate Bitcoin price
The FBI has arrested a man from Alabama on suspicion of hacking into the X account of the US Securities and Exchange Commission (SEC), in a scheme to inflate the price of Bitcoin.
Eric Council Jr., 25, was detained last week following an investigation into an authorised post from the account in January this year.
“Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges,” the post falsely claimed, causing the price of Bitcoin to spike by $1,000.
At the time, the SEC was deliberating on whether to approve the first spot Bitcoin exchange-traded funds (ETF) in the US, meaning that investors were expecting the agency to announce a decision.
After regaining control of the account, the SEC confirmed that the post was unauthorised and was the result of a security breach, which caused the price of Bitcoin to drop by $2,000.
Council has been charged with conspiracy to commit aggravated identity theft and access device fraud.
According to the indictment, he is alleged to have taken over the identity of a person who had access to the SEC X account by using a “SIM swap” scheme.
A SIM swap attack refers to the process of fraudulently inducing a network carrier to reassign a mobile number from a legitimate user’s SIM card to a SIM card and device controlled by a criminal actor.
Working with co-conspirators who provided the personal information of the SEC account holder, Council was allegedly able to create a fake ID, which he used to swap the SIM to a new iPhone that he purchased with cash.
After the swap was complete and the fraudulent post was made, Council is alleged to have received a payment in Bitcoin from his co-conspirators, and to have pawned the iPhone.
He later conducted internet searches for phrases such as “how can I know for sure if I am being investigated by the FBI,” and “What are the signs that you are under investigation by law enforcement or the FBI even if you have not been contacted by them.”
India toys with banning crypto (again)
An article in India’s Hindustan Times has claimed that local regulators are once again considering a ban on crypto-assets, including stablecoins.
Quoting two anonymous sources who are “aware of the matter”, the article claims that key institutions, regulators and government agencies are currently consulting on crypto’s legal future.
The consultations, which will culminate in the publication of a new discussion paper, are leaning towards banning private crypto-assets in favour of a central bank digital currency (CBDC).
“CBDCs can do whatever cryptos do,” said one official who asked not to be named. “In fact, CBDCs have more benefits than cryptos, minus the risks associated with private cryptocurrencies.”
In 2018, the Reserve Bank of India (RBI) ordered all financial institutions to break ties with individuals or businesses dealing in crypto-assets within three months.
The ban led to a collapse in trading volumes, with many exchanges leaving the country, but was overturned by a Supreme Court ruling in 2020.
