Binance Appeals for Release of Detained Employee in Nigeria

Binance, the world’s largest cryptocurrency exchange, is currently embroiled in a serious legal and ethical conflict in Nigeria. The issue centers on the detainment of Tigran Gambaryan, a senior compliance officer at Binance, by Nigerian authorities. This situation began in February 2024, when Gambaryan, along with another Binance executive, Nadeem Anjarwalla, was detained at Abuja airport. They were in Nigeria following an invitation for collaborative meetings with Nigerian financial regulators. The Nigerian government has accused Binance of facilitating illegal transactions, including money laundering, terrorist financing, and forex exchange rate manipulation.

Gambaryan, an American citizen and former IRS special agent known for his work in financial crime compliance, has been held since February, while Anjarwalla managed to escape custody in March. Binance has been actively working to secure Gambaryan’s release, arguing that his detention is unjust and serves as a coercive tactic against the company.

Allegations and Binance’s Response

The Nigerian authorities’ allegations against Binance include allowing illicit financial activities and manipulating the foreign exchange market, with claims that the platform facilitated $26 billion in untraceable wealth in 2023. These accusations have led to a significant standoff between Binance and Nigerian regulators, with the Central Bank of Nigeria also considering a $10 billion fine against the exchange.

In response to these serious allegations, Binance has ceased all naira and peer-to-peer (P2P) services in Nigeria. The company’s CEO, Richard Teng, has publicly condemned the detention of Gambaryan, stating that it sets a dangerous precedent for international business. Teng has emphasized that Gambaryan is not involved in the decision-making processes that the Nigerian government is investigating, and his detention is a misuse of legal authority.

The Humanitarian Aspect

The situation has also raised significant humanitarian concerns. Reports indicate that Gambaryan contracted malaria while in detention and was initially denied adequate medical treatment. It was only after he collapsed in court that a judge ordered his transfer to a private hospital, an order that has not been fully complied with by the Nigerian prison authorities. This has led to appeals from U.S. lawmakers and human rights advocates, urging the Biden administration to intervene and secure Gambaryan’s release.

Broader Implications for the Crypto Industry

This incident underscores broader issues in the cryptocurrency industry, particularly concerning regulatory compliance and international cooperation. Binance has faced regulatory scrutiny worldwide, and the Nigerian case highlights the complexities of operating in different jurisdictions with varying regulatory frameworks. The situation also brings to light the ethical responsibilities of global corporations in ensuring the safety and rights of their employees.

Binance has pledged to work with Nigerian authorities to address the underlying issues. The company has expressed its willingness to cooperate with local law enforcement to remove bad actors from its platform and resolve any tax liabilities. However, Binance maintains that Gambaryan’s detention is unwarranted and calls for his immediate release.

Conclusion

The ongoing detainment of Tigran Gambaryan in Nigeria represents a significant conflict between Binance and Nigerian authorities, raising serious legal, ethical, and humanitarian concerns. As the situation unfolds, it will likely have far-reaching implications for Binance and the broader cryptocurrency industry, highlighting the need for clear regulatory frameworks and the protection of individual rights in international business dealings. The resolution of this case could set important precedents for how such conflicts are managed in the future, emphasizing the balance between regulatory enforcement and the ethical treatment of employees.