Ex-US Federal Agent revealed as one of the detained Binance executives in Nigeria

The Nigerian government detained two executives from the global cryptocurrency exchange Binance, including former US federal agent and American citizen, Tigran Gambaryan, and the Kenya-based regional manager for Africa, Nadeem Anjarwalla. This move came a week after Nigerian authorities had instructed telecom companies to block several cryptocurrency exchange websites.

Gambaryan, who is the head of the Binance criminal investigations team, and Anjarwalla were arrested upon their arrival in Nigeria’s capital, Abuja, and authorities seized their passports. Information about their detention has been sparse, and it remains uncertain whether they will face charges in court.

The detentions seem to be part of increased efforts by the Nigerian government to curb forex trading speculation, instigated by drastic fluctuations in the country’s currency, the naira. After the removal of regulation intended to maintain an artificial exchange rate, the value of the naira experienced a significant fall.

Historically, Nigerian regulators have accused various entities, such as FX rates publication website Abokifx, Bureau de Change operators, and banks, of contributing to currency volatility. Olayemi Cardoso, the chief of the Central Bank of Nigeria (CBN) who was appointed last year, has introduced an array of policy changes designed to mitigate such speculation.

The CBN has singled out Binance in particular, with Cardoso alleging that the exchange facilitated the movement of suspicious funds amounting to $26 billion in a press conference held after a monetary policy meeting in February. This allegation served as grounds for the government’s actions against the Binance executives.

Some reports claim that the government sought data on Binance users, while rumors of a hefty $10 billion fine have been denied. Binance, for its part, has suspended all transactions in the Nigerian currency, the naira. Yet, the exchange has not made any public statement regarding the detentions. The circumstances around Gambaryan’s wellbeing and future remain uncertain, with his wife quoted as saying, “There’s no definite answer for anything: how’s he’s doing, what’s going to happen to him, when he’s coming back.”