Tigran Gambaryan Denied Bail in Nigeria; DOJ Seeks 18-Month Sentence for Bitfinex Hacker
Tigran Gambaryan’s legal battle in Nigeria continues after an Abuja court denied his bail request this week. The Binance executive attempted to convince the judge that he needed specialized medical care due to health issues, but the court rejected his plea, accusing him of “abusing the judicial process.”
Elsewhere, Heather Morgan, the New York-based rapper known as “Razzlekhan” and involved in the 2016 Bitfinex hack, may face less than two years in prison for her role in stealing and laundering 120,000 BTC. U.S. prosecutors are calling for leniency in her sentencing, noting her cooperation since her arrest two years ago.
Gambaryan Denied Bail Again
Gambaryan, the Global Intelligence Head at Binance, was denied bail again on October 11 in Abuja after the court sided with Nigeria’s Economic and Financial Crimes Commission (EFCC). His bail request hinged on claims that he required urgent medical attention, which Nigeria’s prison system allegedly couldn’t provide. In a prior hearing in September, he appeared frail and claimed that authorities denied him a wheelchair, despite suffering from a herniated disc.
Judge Emeka Nwite maintained his position, stating that there was no evidence suggesting Nigeria’s correctional facilities were unable to address Gambaryan’s health needs. In May, Nwite rejected a similar bail application, asserting that Gambaryan could receive necessary medical care while in custody, a decision that was upheld after an appeal.
Judge Nwite remarked that Gambaryan’s most recent bail request amounted to “abusing judicial procedure” while his appeal was pending in the appellate court.
Gambaryan was arrested in February alongside Nadeem Anjarwalla, Binance’s operations head in Africa, but Anjarwalla managed to escape from custody and reportedly fled to Kenya. Despite a trace being found back to Kenya, he has not been apprehended, with his connections to high-ranking figures in the country speculated to be a factor.
The EFCC charged Gambaryan and his employer with laundering $35 million, although tax evasion charges against him were dropped.
Binance expressed its disappointment with the Abuja court’s decision, emphasizing that Gambaryan has been detained “illega
Notably, Nigeria has summoned key Binance executives, including CEO Richard Teng, over several months, but all of them have refused to comply with the summons.
Gambaryan’s wife, Yuki, pledged to continue fighting for his release, calling the denial of proper medical care “completely unjust.”
The case is set to resume on October 18.
DOJ Seeks 18-Month Sentence for Bitfinex Hacker
While Nigerian authorities pursue Gambaryan’s case, the U.S. Department of Justice (DOJ) is advocating for a more lenient sentence for one of the individuals involved in the 2016 Bitfinex hack, which resulted in the theft and laundering of over $7 billion in cryptocurrency.
In a filing with the District of Columbia, the DOJ recommended an 18-month prison term for Heather Morgan, also known as “Razzlekhan.” The sentence, according to the DOJ, would “serve the interests of justice.”
Morgan, along with her husband Ilya Lichtenstein, is accused of conspiring to launder 120,000 BTC stolen in the 2016 Bitfinex hack, now worth approximately $7.85 billion. The DOJ revealed that Lichtenstein told Morgan about the hack four years after it happened and instructed her to launder the stolen funds.
Initially, prosecutors believed that both Morgan and Lichtenstein had participated in the hack together. However, Lichtenstein later took full responsibility for the cyberattack and the money laundering in a plea deal.
“The defendant participated in this scheme with the intent to assist Lichtenstein in laundering stolen funds and later understood that, by doing so, she was attempting to conceal her involvement in the earlier Bitfinex hack,” prosecutors stated.
Morgan faces up to five years for conspiracy to launder money and another five years for conspiracy to commit fraud against the U.S. However, because she has no prior criminal history, did not directly participate in the hack, and has cooperated with authorities, the DOJ recommended a sentence of 18 months, followed by three years of supervised release.
As part of the plea agreement, Morgan must return digital assets valued at over $6 billion, which were seized from her by the government.
Morgan’s sentencing is scheduled for November 15, with Lichtenstein’s sentencing set for the day before.
