Bitrabo Editorial
Richard Teng, the CEO of Binance, has publicly criticized Nigerian authorities for their alleged mistreatment of crypto exchange executives, notably Tigran Gambaryan, who remains detained.
Teng believes it is crucial to shed light on the ongoing conflict between the crypto exchange and the Nigerian regulators on behalf of the business community.
Binance’s Perspective
Since the initial arrests of Gambaryan and Nadeem Anjarwalla, Head of Binance Africa, tensions between Binance and Nigerian authorities have escalated. Richard Teng expressed his concerns about the crackdown on the platform and its executives in a recent public statement.
In a blog post on the Binance website, the CEO provided a comprehensive timeline of the Binance-Nigeria saga from the exchange’s point of view, aiming to present the facts accurately to prevent any misrepresentation.
Timeline of Events
The ordeal began in 2022 when Nigeria’s Securities and Exchange Commission (SEC) introduced new regulations mandating that crypto exchanges in the country acquire SEC permits and adhere to specific guidelines.
Binance claims to have made several attempts to seek guidance from the Nigerian regulator, but their inquiries were allegedly ignored. Teng asserts that no Virtual Asset Service Provider (VASP) has been licensed under the new regulations to date.
In early 2024, Binance representatives met with the Nigerian Financial Intelligence Unit (NFIU) to discuss sharing an Anti-Money Laundering (AML)-related Memorandum of Understanding (MoU). However, following a meeting with the House Committee on Financial Crimes (HCFC), Binance employees were approached by individuals who suggested a settlement payment to resolve unspecified allegations.
Binance’s local counsel later received a demand for a significant cryptocurrency payment within 48 hours to make the issues disappear. The exchange personnel declined the payment, deeming it an illegitimate offer, and left Nigeria. Nigeria has refuted Binance’s bribery allegations.
Implications of Nigeria’s Actions
During a meeting arranged in February with the Office of National Security Advisor (ONSA) director, Gambaryan and Anjarwalla were seized by Nigerian authorities on accusations of economic harm, terrorist financing, and money laundering.
Teng highlighted Gambaryan’s extensive efforts in combating financial crimes globally and emphasized that the detained executive’s expertise lies in financial crime and policy discussions, not decision-making.
The CEO expressed concern that Nigeria’s actions have established a precarious precedent by detaining innocent employees and jeopardizing Binance’s operations.