Binance CEO, Richard Teng, has stated that the Nigerian government's invitation to Binance's Head of Financial Crime Compliance, Tigran Gambaryan, for policy meetings only to later detain him, has set a "dangerous new precedent" for all members of the global business community. Teng made this statement in a post on May 7 about Gambaryan, who has been held in Nigeria since February 26.
"As you may be aware, one of our beloved colleagues, Tigran Gambaryan, continues to be held by the government in Nigeria for more than 70 days," said Teng, according to Binance. "There has been much public commentary on this episode, and I wanted to take this opportunity to provide the facts so that the global community's perception may not be distorted unfairly. I also feel that it's time to speak out about this issue on behalf of the global business community. To invite a company's mid-level employees for collaborative policy meetings, only to detain them, has set a dangerous new precedent for all companies worldwide."
According to Teng, Gambaryan had spent ten years combating financial crime for the U.S. federal government before joining Binance in 2021. In his role as Head of Financial Crime Compliance at Binance, Gambaryan and his team collaborated with government agencies worldwide, including Nigeria, assisting with investigations into financial crimes.
However, when Nigeria's currency, the naira, began losing value in early 2024, Nigerian officials accused Binance of manipulating the currency exchange rate. According to Teng's post, Gambaryan and other Binance employees travelled to Nigeria in January and met with government officials. Upon leaving the meeting, they were approached by unidentified individuals who suggested they make a payment to settle the allegations. The company was informed by its local counsel that he was "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." Binance did not view this demand as a "legitimate settlement offer," leading its employees to promptly leave Nigeria. However, during another scheduled meeting on February 26th in Nigeria, Gambaryan and another employee were detained after the meeting and their passports and cellphones confiscated. Gambaryan remains under detention facing criminal charges.
The Digital Chamber expressed concern over these developments stating that Gambaryan’s detainment under dubious circumstances sets a dangerous precedent. According to their post: "This signals that any American businessman abroad, particularly those in the cryptocurrency sector, is vulnerable to similar unlawful actions by foreign governments." The Chamber also noted that Nigeria is a U.S. ally and receives over $1 billion in U.S. foreign aid annually.
The International Trade Administration (ITA) has also weighed in on the matter. According to a post on their website, doing business in Nigeria presents "some daunting challenges," including "corruption" and "the lack of effective judicial due process."
Gambaryan's career history is detailed in a separate post on Binance's website. For ten years, he served as a U.S. federal agent investigating cases related to "national security, terrorism financing, identity theft, distribution of child pornography, tax evasion, and bank secrecy act violations." Binance hired him in 2021 to address historical compliance issues. In 2022 and 2023, his team assisted law enforcement agencies worldwide in freezing and seizing more than $2.2 billion worth of assets. His career as a leading cyber crimes investigator is chronicled in the book "Tracers in the Dark".