Judge Emeka Nwite ordered the immediate release of Mr. Gambaryan, a US citizen, from Kuje prison in Abuja, following a request from the prosecution during the proceedings on Wednesday morning.
This decision comes just two days before a previously scheduled hearing set for October 25, which had been announced in open court the previous Friday, suggesting a strategic move to minimize public scrutiny.
In a related development, the judge upheld the money laundering charges against Binance, which is now the sole defendant in the case. The cryptocurrency firm is accused of engaging in money laundering and currency speculation that allegedly harmed the Nigerian foreign exchange market and economy, involving amounts up to $34.4 million.
R.U. Adaba, the lawyer representing the Economic and Financial Crimes Commission (EFCC), the prosecuting body, requested on Wednesday morning that the prosecution against Mr. Gambaryan be halted. She referenced diplomatic interventions and the nature of the defendant's involvement in the alleged offenses as primary factors for this request.
“The government has reassessed the case and, considering that the second defendant (Mr. Gambaryan) is an employee of the first defendant (Binance Holdings Limited), whose role in the matter carries more weight than that of the second defendant, along with significant international and diplomatic considerations, the state wishes to discontinue the case against the second defendant,” Ms. Adaba stated.
She also mentioned Mr. Gambaryan's deteriorating health while in custody, noting that “the defendant's health has been a persistent concern that the state has managed adequately at the correctional facility through the National Security Adviser.”
Despite the Nigerian government's diligent efforts to provide care, Ms. Adaba stated that "the second defendant can hardly walk without the aid of a wheelchair or crutches, in addition to suffering from other health issues."
She noted that "surgery has been recommended," and the recovery period "could take some time, potentially affecting the trial's progress."
Mark Mordi, a Senior Advocate of Nigeria (SAN) representing Mr. Gambaryan, concurred with the prosecution, asserting that his client was not involved in the company's wider financial decisions.
"We request the court to expedite the proceedings to facilitate Mr. Gambaryan's release from the correctional facility," the senior attorney stated.
In addition to pursuing his client's release, Mr. Mordi sought a full acquittal, referencing Section 108 of the Administration of Criminal Justice Act (ACJA) to support the request for the second defendant to be "discharged and acquitted."
Wednesday's hearing represented the culmination of months of intensive diplomatic negotiations between Nigerian and US officials, aimed at securing Mr. Gambaryan's release.
In the weeks preceding the hearing, several US lawmakers advocated for Mr. Gambaryan's release, reaching out to pertinent Nigerian and American authorities for intervention.
The pressure on the Nigerian government escalated after the trial court denied the defendant's bail requests on two separate occasions.
Discharged but not acquitted
Although the EFCC agreed to withdraw the charges on Wednesday, it opposed the request for a complete acquittal.
Ms. Adaba emphasized that the case remains active and has not yet been adjudicated on its merits.
She clarified that a significant factor in dropping the charges against Mr. Gambaryan was his poor health, stating, “this decision is not based on a lack of evidence.”
“The case has not been heard in full, and we are still in the process of calling witnesses,” she argued, reinforcing her position that Mr. Gambaryan should not receive a full acquittal.
Ruling
In his ruling, the presiding judge, Mr. Nwite, acknowledged that Mr. Gambaryan was simply an employee of Binance and not the central figure in the case.
However, while the judge ordered Mr. Gambaryan’s discharge, he refrained from granting a full acquittal.
“I hereby direct the correctional facility to release the second defendant immediately,” Mr. Nwite stated.
He then postponed the trial until November 22 and 25 to continue proceedings against Binance, indicating that the previously scheduled date of October 25 has been superseded by Wednesday’s developments.
Background
Mr. Gambaryan has been detained at the Kuje Correctional Centre in Abuja since his arraignment in April.
He is on trial alongside Binance, the cryptocurrency firm for which he served as the country representative, facing five counts related to money laundering and currency speculation involving approximately $34.4 million.
Binance is also dealing with tax evasion allegations in a separate case before another judge at the Federal High Court in Abuja.
In May, the court rejected the bail application of the Binance executive, deeming him a flight risk.
This ruling followed an incident approximately two months prior, when Mr. Gambaryan's associate, Nadeem Anjarwalla, allegedly escaped from pre-trial detention in Abuja in March.
Since the court's denial of bail, Mr. Gambaryan's health issues have been a prominent topic during the trial and the basis for his subsequent unsuccessful bail requests.
On October 11, the court dismissed Mr. Gambaryan's second bail application, which was based on his health concerns.
The judge determined that Mr. Gambaryan did not demonstrate in his application that the Nigerian Correctional Service (NCoS) lacked adequate facilities or had neglected his health needs.
Additionally, the judge ruled that the bail request represented an abuse of the court's process, as Mr. Gambaryan was still contesting the previous bail ruling at the Court of Appeal.
The judge emphasized that the defendant had not withdrawn his pending appeal regarding the earlier bail decision before submitting a new motion, which constituted an abuse of the court's process.
"There is no doubt that this application is destined to fail," he stated.
Nevertheless, the judge instructed the NCoS to arrange for Mr. Gambaryan to be taken to a standard hospital in Abuja for a duration of two to three days.