Binance CEO Richard Teng has denounced the Nigerian government for reportedly apprehending company executives and attempting to enforce a covert crypto settlement. This follows the Nigerian authorities’ detention of two Binance workers, creating a potentially unsafe global business environment.
Teng shared that Tigran Gambaryan, a former US Internal Revenue Service agent leading Binance’s financial crime compliance team, is currently in custody. Gambaryan, globally esteemed in preventing financial crimes, was arrested during a venture to Nigeria despite Binance’s past collaborative efforts with Nigerian law enforcement agencies and participation in regulatory dialogues.
Binance started discourse with Nigerian officials in public investigative hearings at the request of the House of Representatives Committee on Financial Crimes (HCFC). The committee had earlier raised concerns about Binance’s operations in Nigeria. The list of potential measures against Binance included arrest warrants against the exchange’s team and CEO and restricting them from leaving Nigeria.
A public hearing was scheduled for January 10, with Binance slated to address the allegations. However, Teng noted that the firm hadn’t received the particulars of the accusations at the time. The delegation aimed to present their responses in writing due to the absence of a public hearing. The committee chair stated they would think through this request and contact Binance’s legal team.
Binance management was supposedly approached by unidentified individuals proposing a covert settlement paid in cryptocurrency. The negotiation terms handed over to Binance’s local counsel stated a significant crypto payment was to be made secretly within 48 hours to resolve the issues. However, Binance did not acquiesce to the payment demand and remained involved in the negotiation process.
Following allegations of an undocumented proposal for a settlement, subsequent meetings were scheduled for late February. Officials from various government offices, such as The Office of The National Security Adviser, the Office of the President, the Central Bank of Nigeria, and others, were present.
The controversy heightened when the Nigerian authorities seized Tigran Gambaryan and Nadeem Anjarwalla (head of Binance Africa) after demanding certain actions from Binance. These demands included removing the naira from their platform and revealing detailed user information. Despite prior assurances of safety, Binance alleges that their executives were held against their will, with their passports and mobile phones confiscated. Gambaryan’s release is now reportedly contingent on Binance’s agreement to Nigerian government’s requests.