Cryptocurrency exchange Binance's compliance chief was asked to pay about $150 million in bribes by government officials before his arrest in Nigeria
Tigran Gambaryan, head of compliance at major cryptocurrency exchange Binance, was suddenly arrested by Nigerian authorities while visiting Nigeria in February 2024. It was reported that in January 2024, just before his arrest, Gambaryan and others had received a demand that 'Binance pay approximately $150 million (approximately 23 billion yen) in cryptocurrency to the Nigerian government within 48 hours.'
From Richard Teng, Binance CEO: Tigran Gambaryan is Innocent and Must Be Released | Binance Blog
Behind Nigeria's Arrest of Binance Employee, Claims of a Bribe Request - The New York Times
Mr. Gambaryan and his colleague Nadeem Anjarwala, who visited Nigeria in February 2024, were arrested by Nigerian authorities. Mr. Gambaryan was then transferred from the government facility to Kuje Prison in Abuja, the capital of Nigeria, on April 8, 2024, where he was detained for four weeks. Mr. Anjarwala fled the country on March 23, 2024, just before his detention.
Nigerian authorities say Gambaryan is suspected of tax evasion and money laundering at Binance. Nigerian National Security Adviser Zachary Mijinyawa said, 'The Nigerian government will follow due process and establish facts and evidence.'
On the other hand, Binance CEO Richard Teng said, 'Mr. Gambaryan has dedicated his life to fighting financial crimes as a special agent for the United States Internal Revenue Service (IRS),' denying the Nigerian authorities' claim that 'Mr. Gambaryan had decision-making power, such as tax evasion, at Binance.' Teng also criticized, 'The Nigerian government seems to think that it can control Binance by forcibly detaining innocent employees and putting them in dangerous prisons.'
In 2023, Nigeria's financial regulator issued a statement instructing Binance to stop soliciting investors in Nigeria. In response, Binance stopped advertising in Nigeria and met with government officials. However, Nigerian authorities claimed that 'cryptocurrency trading on Binance is related to the collapse of the country's currency, the naira,' and in December 2023, a committee of the Nigerian House of Representatives called on Binance representatives to appear at a public hearing.
Binacne revealed that at a meeting held on January 8, 2024 between Nigerian members of parliament and a group of Binacne employees, including Mr. Gambaryan, there were threats such as 'Requesting an arrest warrant for CEO Ten'.
After the meeting, a person claiming to be a representative of the House of Representatives Committee demanded that CEO Teng's lawyer 'pay approximately $150 million in virtual currency within 48 hours to resolve the allegations.' In response, CEO Teng said, 'Through our lawyers, we have rejected this demand for payment. We do not consider this to be a legitimate settlement offer.'
According to Binance, an adviser to a company with deep ties to the Nigerian government told them that a series of issues would be resolved if Binance executives visited the Nigerian National Security Adviser's office. That's why Mr. Gambaryan and Mr. Anjarwala visited Nigeria on February 26, 2024.
Nigerian officials demanded that Gambaryan and Anjarwala provide detailed information about Binance users in Nigeria, a request that they both refused to comply with.
Nigeria's financial crimes agency told the US embassy in the country that 'Mr. Gambaryan is currently in very constructive discussions with our team and we can assure you that Mr. Gambaryan is actively participating in these discussions.'
'We will continue to do all we can to free Mr. Gambaryan and our belief remains unwavering,' Teng said.
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