Binance CEO Richard Teng has come forward with a comprehensive account of the ongoing detention of Tigran Gambaryan, a former U.S. Internal Revenue Service (IRS) agent and head of Binance’s financial crime compliance team, in Nigeria.
In a detailed statement, Teng condemned the Nigerian government’s actions, claiming that they have set a dangerous precedent for companies worldwide by detaining mid-level employees invited for collaborative policy meetings.
TLDR
- Binance CEO Richard Teng provided a detailed account of Tigran Gambaryan’s ongoing detention in Nigeria, condemning the Nigerian government’s actions.
- Teng highlighted Gambaryan’s background as a former U.S. IRS agent and his role in fighting financial crimes at Binance, asserting his innocence.
- Binance engaged with Nigerian authorities, including the SEC, NFIU, and EFCC, to discuss regulatory compliance and law enforcement cooperation from 2022 to 2024.
- In February 2024, Binance employees Gambaryan and Nadeem Anjarwalla were detained by Nigerian officials during meetings, despite assurances of safe passage.
- Nigerian officials demanded that Binance delist the naira from its platform, provide user information, and comply with financial/tax requirements in exchange for the employees’ release.
Teng emphasized Gambaryan’s background as a highly regarded global financial crime fighter, highlighting his decade-long career as a federal agent and his efforts to build stronger compliance controls at Binance.
He noted that Gambaryan’s team assisted global law enforcement in freezing and seizing more than $2.2 billion worth of assets in 2022 and 2023.
The CEO provided a timeline of Binance’s engagement with Nigerian authorities, dating back to 2022 when Nigeria’s Securities and Exchange Commission (SEC) published regulations for digital assets.
Binance proactively reached out to the SEC to seek guidance on the licensing process and offer consultative engagement. However, the exchange received no response from the SEC.
In 2023, Binance continued to engage with Nigerian authorities, supporting the Digital Currency Coalition (DCC) and conducting law enforcement training for the Nigerian Financial Intelligence Unit (NFIU) and Economic and Financial Crimes Commission (EFCC).
In December 2023, Binance received a request from the House Committee on Financial Crimes (HCFC) to appear at a public investigative hearing.
In February 2024, Gambaryan and Nadeem Anjarwalla, head of Binance Africa, traveled to Nigeria for meetings with government representatives, receiving assurances of safe passage.
However, during the meetings, Nigerian officials demanded that Binance delist the naira from its platform, provide user information, and comply with financial/tax requirements.
Gambaryan and Anjarwalla were then detained and moved to a secure compound, with their passports and mobile phones confiscated.
Binance responded by removing the naira pairing from its platform and shutting down the P2P product for Nigeria, hoping for the release of its employees.
However, Gambaryan remains in detention, with Nigerian officials stating that they are holding him as leverage against Binance.
Teng expressed his distress over the situation and reiterated Binance’s commitment to working with global regulators and enforcement agencies to uphold the integrity of the global financial system.
He highlighted the company’s efforts to restructure its organization, upgrade systems, and appoint new leadership with deep compliance experience.
The CEO called for Gambaryan’s immediate release, emphasizing that Binance is willing to work with the Nigerian government to resolve any further concerns and address potential historic tax liabilities.
He urged the Nigerian government to allow Gambaryan to return home to his family and expressed hope for a future where Binance can work alongside the Nigerian government to build a strong economy for the Nigerian people.
