Fresh details have emerged indicating that Nigerian officials attempted to pressure Binance representatives into a covert settlement paid in cryptocurrency during meetings in early 2024.
On May 7, Binance CEO Richard Teng released a comprehensive account of Tigran Gambaryan’s ongoing detention. Gambaryan, a former agent of the United States Internal Revenue Service who led Binance’s financial crime compliance team, was detained while on a business trip to Nigeria.
Teng criticized the Nigerian government for its actions, stating that the country has “established a dangerous new precedent for all companies worldwide” after detaining two of its employees.
Gambaryan, who is highly respected in the field of global financial crime prevention, was taken into custody while in Nigeria. Teng outlined the efforts made by the exchange to engage constructively with Nigerian authorities, including participating in regulatory discussions and cooperating with law enforcement agencies.
Request for a public hearing
According to Teng, Binance employees initiated discussions with Nigerian authorities during public investigative hearings in response to a request from the chairman of the House of Representatives Committee on Financial Crimes (HCFC).
The committee reportedly raised concerns about Binance’s operations in Nigeria and stated their willingness to summon Binance, issue arrest warrants against the exchange’s team and CEO, and prevent its delegation from leaving the country.
A public hearing was scheduled for January 10, and Binance was expected to publicly respond to any allegations in the presence of the petitioners, the press, and more than 30 agencies.
Teng claimed that Binance had not received details of the allegations and that the delegation sought to submit written responses in the absence of a public hearing. The committee chair promised to consider the request and respond to Binance’s legal counsel.
Covert cryptocurrency settlement
Binance’s CEO alleges that unidentified individuals approached the exchange’s employees and suggested making a payment as a settlement for the allegations. Teng stated that Binance’s local legal representative received terms from an agent representing the HCFC committee:
The exchange rejected the payment demand through its local legal representative and continued to engage in settlement negotiations. Binance presented several conditions as it prepared to continue discussions with Nigerian authorities following the incident.
Further meetings were scheduled for late February, with government representatives from the Office of The National Security Adviser, the Office of the President, the Central Bank of Nigeria, the Nigerian Financial Intelligence Unit, the Economic and Financial Crimes Commission, and the Nigerian SEC in attendance.
“Despite the obvious risks, Tigran Gambaryan and Nadeem Anjarwalla (head of Binance Africa) received multiple assurances that they would be allowed safe passage for their meetings,” Teng said.
Binance suspends Nigerian services
The situation escalated when Nigerian officials demanded actions from Binance, including delisting the naira from their platform and providing detailed user information, leading to the detention of Gambaryan and Anjarwalla.
Despite assurances of safety, Binance asserts that the pair were held against their will, and their passports and mobile phones were confiscated. Gambaryan remains in custody, with the Nigerian government insisting that his release is contingent on Binance’s compliance with its demands.
In response, Binance has suspended certain services in Nigeria in an attempt to resolve the situation and secure Gambaryan’s release.
Binance CEO alleges Nigerian officials suggested undisclosed cryptocurrency resolution.