Binance CEO Says Nigeria’s Detention of Employee on 'Spurious' Charges Sets 'Dangerous Precedent'

Binance CEO Laments ‘Spurious’ Charges Against Tigran Gambaryan

Richard Teng, CEO of Binance, has renewed calls for the release of Tigran Gambaryan, who is currently detained in Nigeria and warned of a “dangerous precedent” being set by the African nation. Teng also claimed that the “spurious” allegations against Gambaryan, a mid-level employee, are undermined by his well-known status as a global financial crime fighter.

In a detailed statement issued on May 7, Teng chronicled the origins of Binance’s efforts to secure an operating license and the failure of the Nigerian Securities and Exchange Commission (SEC) to respond favorably to the crypto exchange’s overtures. Instead of engaging with Binance, Teng claimed, the SEC issued a circular in June 2023 warning residents against using the crypto exchange platform.

Teng stated that when Binance realized the SEC was not forthcoming, it attempted to achieve the same goal under the auspices of an advocacy group known as the Digital Currency Coalition (DCC). To further demonstrate its commitment to the Nigerian market, Binance also trained law enforcement agents from Nigeria’s financial crime-fighting bodies, Teng said.

However, despite these efforts, it seemed that Nigerian authorities were more interested in the idea of questioning Binance for its alleged wrongdoing. The CEO of Binance stated that the cryptocurrency exchange reluctantly agreed to send a team to appear before Nigerian lawmakers. According to Teng, it was during a meeting with Nigerian lawmakers on Jan. 8 that threats of arrest or detention were first made.

Bribe Demand Claims

Meanwhile, the CEO seemed to confirm local media reports suggesting that Nigerian officials had attempted to extort money from Binance. Teng stated:

Counsel reported back that he had been presented with a demand for a significant payment in cryptocurrency to be paid in secret within 48 hours to make these issues go away and that our decision was expected by the morning [January 9]. Our team grew increasingly concerned about their safety in Nigeria and immediately departed.

On the fateful day when Gambaryan and his fellow Binance employee, Nadeem Anjarwalla, were detained, Teng claimed that the two had “received multiple assurances for their safety.” However, despite these assurances, the duo was detained and forcibly moved to a guest house.

Anjarwalla has since escaped from custody, but Gambaryan remains detained. A Nigerian judge recently ruled that he be transferred to a notorious Nigerian jail. This court ruling prompted Teng to claim that Nigerian authorities are holding Gambaryan because they believe they use this to control Binance.

Register your email here to get a weekly update on African news sent to your inbox:

What are your thoughts on this story? Let us know what you think in the comments section below.