2024-05-08
Binance CEO Richard Teng has expressed concern over the Nigerian government's actions, stating that it has set a dangerous precedent by inviting company executives to meetings and then detaining them.
Recent information suggests that Nigerian officials attempted to pressure Binance representatives into a secret settlement paid in cryptocurrency during early 2024 meetings.
On May 7, Binance CEO Richard Teng provided a detailed account of the ongoing detention of Tigran Gambaryan, a former United States Internal Revenue Service agent who led Binance's financial crime compliance team.
Teng criticized the Nigerian government for its actions, stating that it has established a dangerous precedent for all companies worldwide by detaining two of its employees.
Gambaryan, a highly respected figure in global financial crime prevention, was detained while on a business trip to Nigeria.
Teng explained Binance's efforts to engage with Nigerian authorities in a constructive manner, including participating in regulatory discussions and cooperating with law enforcement agencies.
According to Teng, Binance employees began discussions with Nigerian authorities during public investigative hearings following a request from the chairman of the House of Representatives Committee on Financial Crimes (HCFC).
The committee raised concerns regarding Binance's operations in Nigeria and indicated their willingness to summon Binance, issue arrest warrants against the exchange's team and CEO, and prevent the delegation from leaving the country.
A public hearing was scheduled for January 10, and Binance was expected to respond to any allegations publicly in the presence of petitioners, the press, and over 30 agencies.
However, Teng stated that Binance had not received detailed allegations and requested to submit written responses in the absence of a public hearing.
The committee chair agreed to consider the request and respond to Binance's legal counsel.
Binance's CEO claimed that unknown individuals approached the exchange's employees and suggested making a payment in cryptocurrency to settle the allegations.
Binance's local counsel received terms from an agent representing the HCFC committee, demanding a significant payment within 48 hours to resolve the issues secretly.
Despite this demand, Binance declined and continued engaging in settlement negotiations.
Subsequent meetings were arranged for late February, with representatives from various government offices present, including 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.
Teng stated that despite receiving assurances of safe passage for their meetings, the situation escalated when Nigerian officials demanded actions from Binance, such as delisting the naira from their platform and providing detailed user information.
As a result, Gambaryan and Anjarwalla were detained, and their passports and mobile phones were confiscated.
Gambaryan remains detained, and the Nigerian government insists that his release is contingent on Binance's compliance with its demands.
In response, Binance has temporarily suspended certain services in Nigeria in an effort to resolve the situation and secure Gambaryan's release.
