Binance CEO Richard Teng has issued a statement to clarify the circumstances surrounding the detention of exchange employee Tigran Gambaryan, aiming to prevent any unjust distortion of the global community’s perception. Teng expressed concern that the practice of detaining employees who are visiting a country upon invitation for collaborative policy discussions sets a troubling precedent for businesses worldwide.
The situation arose after Binance appealed for Gambaryan to remain unaccountable while ongoing dialogues with the Nigerian government were in progress. Gambaryan, along with his colleague Nadeem Anjarwalla, was apprehended at a guest house in Abuja in February 2024. Prior to this incident, in January 2024, Gambaryan and a group of Binance representatives traveled to Nigeria to engage with the House Committee on Financial Crimes (HCFC).
During their visit, Teng mentioned that the Committee highlighted the seriousness of the matter and even threatened to issue arrest warrants for the Binance team, including the CEO. They also scheduled a public hearing for January 10, yet failed to provide Binance with specific accusations.
Binance’s team requested to address the issues through written correspondence, pointing out the lack of detailed information and concerns for their safety. Nevertheless, after leaving the meeting, they were confronted by unidentified individuals who insinuated that a payment could resolve the accusations.
Subsequently, an individual claiming to represent the committee contacted Binance’s local legal team, demanding a substantial payment in cryptocurrency, reportedly amounting to $150 million according to the New York Times. Binance rejected this extortion attempt and proposed settlement terms that included receiving the formal allegations, signing official written agreements by all involved parties, and ensuring their employees’ protection from any form of intimidation or harassment.
In March, Binance faced tax evasion allegations from Nigeria’s tax authority, which claimed that the cryptocurrency exchange had not properly registered for tax purposes.
CEO Richard Teng has pointed out significant shortcomings in the 2022 SEC regulations on digital assets issued by Nigeria, arguing that they lack clear guidance on essential licensing requirements. This ambiguity, Teng suggests, has made it exceedingly difficult for crypto exchanges to secure the necessary permits and adhere to compliance standards.
Teng also noted that Binance’s attempts to seek practical advice from the Nigerian authorities on navigating the licensing process went unanswered. Despite this, he affirmed Binance’s commitment to ongoing discussions with Nigeria’s Federal Inland Revenue Service (FIRS) to address any potential unresolved tax obligations.
In a further development in April, Binance and its employees were accused of laundering over $35 million. Tigran Gambaryan, who is currently detained at a correctional facility in Abuja, has pleaded not guilty to these charges. Meanwhile, his colleague managed to evade arrest and has reportedly been seen in Kenya. There are ongoing discussions about his potential extradition back to Nigeria.
Tigran Gambaryan, the detained Binance employee, has submitted a bail application and is anticipating a court decision, which is set for May 17, 2024. The Economic and Financial Crimes Commission (EFCC) of Nigeria has expressed concerns that Gambaryan poses a flight risk, citing the instance of his colleague who managed to evade detention and flee the country. This argument by the EFCC is likely to be a central point of consideration in the court’s decision on whether to grant Gambaryan bail.
Richard Teng, the CEO of Binance, has dismissed the reasons for Tigran Gambaryan’s detention in Nigeria as unfounded.
Binance has previously clarified that Gambaryan does not hold any decision-making power within the company, emphasizing his role as a former law enforcement professional rather than a member of Binance’s management. Teng has stressed that Gambaryan’s visit to Nigeria was not in the capacity of a decision-maker or negotiator but rather as a specialist in financial crime prevention and policy development.
Furthermore, Teng highlighted a point from Gambaryan’s April bail hearing where the EFCC prosecutor suggested that because Binance operates virtually, detaining Gambaryan was their only leverage. Teng interpreted this as an indication of Nigeria’s intent to wrongfully detain an innocent employee and confine him in a hazardous correctional facility as a means to exert influence over Binance.
