Urgent Appeal From Binance CEO For Employee’s Release In Nigeria
Binance CEO Richard Teng has publicly urged the Nigerian government to release Tigran Gambaryan, the head of the crypto exchange’s Financial Crime Compliance team, who was detained in Nigeria after arriving in February for discussions on regulatory oversight.
In a blog post, Teng expressed his concern for Gambaryan, who has been held for over 70 days, highlighting the incident as a worrying precedent for international businesses. He emphasized the potential risks involved when mid-level employees are detained under such circumstances, which could deter global business interactions.
My friend and colleague, Tigran Gambaryan, has been unlawfully detained by the Nigerian government for more than 70 days. We're tirelessly working to #BringTigranHome.
For the first time publicly, I'm sharing the full context of this situation here.
https://t.co/Rg3DEYJZgW
— Richard Teng (@_RichardTeng) May 7, 2024
Allegations of Bribery and Financial Crimes Amidst Regulatory Scrutiny
In January, Tigran Gambrayan, a compliance officer at the global cryptocurrency exchange Binance, and his colleague Nadeem Anjarwallar encountered a daunting challenge. During a meeting with Nigerian legislators, they were requested to pay a substantial sum of $150 million in cryptocurrency, which was insinuated as a bribe in a report by the New York Times. The urgency of the situation was underscored by a 48-hour deadline imposed on them to complete this transaction.
Reacting swiftly to the situation, Gambrayan left Nigeria soon after the meeting and prepared a detailed three-page document outlining the monetary request. He disseminated this document among Binance’s legal team and the company’s contacts within the Nigerian government.
Despite the precarious situation, both Gambrayan and Anjarwallar returned to Nigeria a month later. However, their situation worsened when they were arrested in February on charges of tax evasion and money laundering.
Economic Challenges in Nigeria Exacerbate Tensions with Binance
Nigeria, facing an economic downturn, saw its currency plummet to a record low against the dollar in March, and inflation reached a 28-year peak at 33.2%. Earlier, the Governor of the Bank of Nigeria, Olayemi Cardoso, accused Binance of facilitating the untraceable transfer of $26 billion out of the country, significantly impacting tax revenues. Teng noted that Binance has repeatedly attempted to engage with Nigeria’s Securities and Exchange Commission since 2022 to understand licensing requirements but has received no response.
During a trip to Nigeria for a meeting with high-ranking officials including the CEO of the SEC, the deputy governor of the central bank, and the national security adviser, Gambaryan and Nadeem Anjarwalla, Binance’s regional manager for Africa, were detained. Initially held in a secure compound, Anjarwalla managed to escape custody in March. Meanwhile, Gambaryan faces money laundering charges and is incarcerated at Kuje prison, known for housing suspected Boko Haram members.
Nigeria to Impose Ban on Peer-to-Peer Cryptocurrency Trading
As reported earlier today, the Securities and Exchange Commission of Nigeria is poised to unveil a new regulatory framework targeting crypto exchanges, custodians, and other related firms soon. Emomotimi Agama, the SEC Director General, highlighted that the forthcoming regulations are designed to remove the naira from peer-to-peer (P2P) crypto exchanges.
This move aims to safeguard the local currency from potential manipulation. Agama emphasized that the decision was prompted by recent worries about the influence of crypto P2P traders on the naira’s exchange rate, pointing out the necessity for coordinated action to address these concerns.
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