Nigerian blockchain association: Detention of Binance exec has 'significant implications for the national interest' of Nigeria

Africa
Webp biccon
Blockchain Industry Coordinating Committee of Nigeria Chairman Lucky Uwakwe (left) and Binance Head of Financial Crime Compliance Tigran Gambaryan (right) | biccon.com.ng, LinkedIn/tigran-gambaryan

The Blockchain Industry Coordinating Committee of Nigeria (BICCoN) has expressed concerns regarding the ongoing detention of Binance employee Tigran Gambaryan and its potential impact on Nigeria's domestic industries and international standing. BICCoN shared its statement in a June 24 post on its website.

"In recent weeks, the Nigerian blockchain community has been deeply concerned about the ongoing legal contention involving Binance, the world's largest cryptocurrency exchange, and the continued detention of its executive, Tigran Gambaryan," said BICCoN. "These developments have significant implications for the national interest, the reputation of Nigeria's blockchain industry, and our international collaborations. We recognize the Nigerian government's legitimate need to protect national interests, including ensuring economic stability and regulatory compliance. However, it is also imperative for the Nigerian government to consider the broader implications of its actions, not only on the country's emerging industry but also other sectors."

According to BICCoN, the blockchain industry is "inherently global," making it essential for Nigeria to collaborate with international partners. However, the regulatory situation with Binance and the ongoing detention of Gambaryan have "already begun to have detrimental effects" on Nigeria's industries. The country is now experiencing a "notable decline" in foreign investments, while Nigerian Web3 startups are struggling to attract collaborators. BICCoN emphasized that collaboration and foreign investment are crucial for Nigeria's economy and job creation.


Blockchain Industry Coordinating Committee of Nigeria Chairman Lucky Uwakwe (left) and Binance Head of Financial Crime Compliance Tigran Gambaryan (right) | biccon.com.ng, LinkedIn/tigran-gambaryan

Additionally, BICCoN stated that international collaboration extends beyond investment to include the sharing of knowledge and resources, which is critical for developing Nigeria's blockchain industry. The organization highlighted that collaboration with companies such as Elliptic, a blockchain analytics firm, has "significantly benefitted" Nigeria's law enforcement agencies and regulatory bodies. "These partnerships enhance the ability of our agencies to combat financial crimes and ensure a secure environment for all stakeholders," BICCoN said.

Jeff John Roberts, author of the Fortune Crypto newsletter, described Gambaryan as an "American hero" who served as a special agent for the Internal Revenue Service (IRS) for ten years before joining Binance. According to Roberts' newsletter, Gambaryan has been "languishing in prison" in Nigeria after being arrested on "spurious" charges in February and is now suffering from malaria and pneumonia. Roberts reported that members of the Nigerian media have begun to speak out about the situation, saying that the Nigerian government is using Gambaryan as a "scapegoat" for economic mismanagement.

Congressman French Hill, who visited Gambaryan in Nigerian prison in June along with Congresswoman Chrissy Houlahan, said the Binance employee is being "wrongfully detained," according to a post on X (formerly known as Twitter). Hill called for the remaining criminal charge against Gambaryan to be dropped and for his immediate humanitarian release. "Tigran has devoted his professional life to fighting money laundering and tax evasion, having spent ten years as an IRS Special Agent where he successfully led cyber and financial crime investigations," Hill said. He added that at the time of his arrest, Gambaryan was working as a contract employee at Binance and was instrumental in criminal investigations and compliance in cooperation with Nigerian authorities.

BICCoN is a working group aiming to support a "collaborative, innovative, and secure blockchain ecosystem in Nigeria." Its stakeholders include the Blockchain Nigeria User Group (BNUG) and the Cryptography Development Initiative of Nigeria (CDIN). BICCoN is led by Chairman Lucky Uwakwe.