Key Takeaways
- Binance CEO condemned the Nigerian government for its actions, stating that the country has “set a dangerous new precedent for all companies worldwide”
- Gambaryan will face trial on May 17 on charges such as tax evasion, currency speculation, and money laundering.
- Despite assurances of safe passage, Gambaryan, alongside Nadeem Anjarwalla, Binance’s regional manager for Africa, were detained in February after flying in for a high-level meet with key Nigerian officials
Binance CEO Richard Teng has issued a plea to the Nigerian government, calling for the immediate release of Tigran Gambaryan, who headed Binance’s financial crime compliance team. In a detailed blog post on May 7, Teng condemned the Nigerian Government’s action and expressed deep concern over Gambaryan’s prolonged detention of over 70 days. Teng stated, “To invite a company’s mid-level employees for collaborative policy meetings, only to detain them, has set a dangerous new precedent for all companies worldwide.”
The ordeal unfolded against the backdrop of discussions between Binance representatives and Nigerian authorities regarding regulatory supervision. Allegations leveled against Binance include claims by Bank of Nigeria Governor Olayemi Cardoso that the exchange facilitated the untraceable outflow of $26 billion in funds last year, significantly impacting tax revenues.
Despite seeking clarification on licensing requirements from the Nigerian Securities and Exchange Commission since 2022, Binance has received no response, exacerbating tensions between the exchange and Nigerian authorities.
Teng provided insight into the genesis of the dispute, revealing that discussions between Binance and Nigerian authorities were initiated following a request from the House of Representatives Committee on Financial Crimes.
Despite assurances of safe passage, Gambaryan, alongside Nadeem Anjarwalla, Binance’s regional manager for Africa, were detained in February after flying in for a high-level meeting with key Nigerian officials, including the CEO of the Securities and Exchange Commission, the deputy governor of the central bank, and the national security adviser.
The situation took a dramatic turn when Binance executives faced demands for cryptocurrency bribes, a proposition vehemently rejected by the exchange. Subsequently, Gambaryan and Anjarwalla were detained by Nigerian officials from the Office of the National Security Adviser. While Anjarwalla managed to escape custody, Gambaryan remains detained, facing serious money laundering charges and a postponed bail hearing until May 17.
Gambaryan’s prolonged detention has raised significant concerns over potential human rights violations, prompting him and Anjarwalla to file a lawsuit against the Nigerian authorities. Meanwhile, Binance has been actively engaged in settlement negotiations and has suspended certain trading activities in the country in response to the incident.
Binance CEO Richard Teng issued a detailed account of Tigran Gambaryan’s ongoing detention on May 7. Gambaryan is a former United States Internal Revenue Service agent who headed up Binance’s financial crime compliance team.
