WSJ names Binance employees detained in Nigeria

[Teacher]

Two Binance employees detained in Nigeria were Tigran Gambaryan, Vice President for Global Intelligence and Investigations of the exchange, and Nadim Anjarwalla, director of the trading platform in West and East Africa. This is reported by the Wall Street Journal.

Top managers were invited by the Nigerian authorities to discuss the current problems of Binance. According to the publication, on February 25, they arrived in the capital of the country — Abuja.

After their first meeting, Gambaryan and Anjarwalla were taken to hotels, told to pack their bags, and transferred to a" hotel " run by the National Security Agency of Nigeria.

Since then, they have been forcibly detained by the Nigerian authorities.

Earlier, in an interview with the BBC, presidential press secretary Zachary Miginyawa said that the exchange's employees are under investigation and "are being questioned as part of an investigation conducted by the security authorities on the regulation of the foreign exchange market."

The media also reported that Binance's top managers had their passports confiscated.

Recall that the Nigerian authorities are concerned about the impact of cryptocurrency exchanges on the country's economy. Telecommunications companies have been ordered by the government to block access to a number of platforms, including Binance, Coinbase and Kraken.

In early March, it was reported that the Nigerian authorities allegedly demanded compensation of $10 billion from Binance for manipulating the naira exchange rate. However, both the exchange and the adviser to the President of Nigeria, Bayo Onanuga, later denied this information.

Also, the local House Committee on Financial Crimes demanded that the CEO of the Binance cryptocurrency exchange, Richard Teng, appear before the agency to testify on the fact of alleged terrorist financing and money laundering.

 

[Teacher]

The Federal High Court of Abuja has ordered the Binance cryptocurrency exchange to provide comprehensive information on all individuals from Nigeria trading on its platform. This is reported by local media.

The request came from the Economic and Financial Crimes Commission, which is investigating the exchange's activities in the country. The requested data includes the names and full transaction history of Nigerian users.

Recall that the Nigerian authorities accuse Binance of financing terrorism, money laundering and manipulating the exchange rate of the naira. According to the local central bank, over the past year, $26 billion has passed through Binance alone, the sources of which "cannot be accurately determined."

Earlier, the exchange was required to provide a list of the hundred largest users in Nigeria and the entire transaction history for the last six months. The platform was also required to settle any outstanding tax obligations.

Binance could potentially face a $10 billion fine.

Two top managers of the exchange, Tigran Gambaryan and Nadim Anjarvalla, remain in custody in the country, although they have not been charged with any charges. The Binance case is scheduled for March 20.

Amid the proceedings, the Securities and Exchange Commission of Nigeria has taken the initiative to increase registration fees for crypto companies by 400%.

 

[Father]

Binance has issued an official statement in support of its own senior employee, who was detained by the Nigerian authorities five weeks ago on charges of facilitating tax crimes.

Tigran Gambaryan, a former U.S. law enforcement official, has investigated cases related to national security, terrorist financing, identity theft, distribution of child pornography, tax evasion, and violation of the Bank Secrecy Act. In particular, he investigated the case of the largest Russian-speaking crypto exchange BTC-e.

In 2021, Binance hired Tigran Gambaryan "to provide practical assistance in resolving issues of compliance of the exchange's financial practices with the norms and rules of international regulatory authorities." The employee's functions were limited to interaction with law enforcement agencies of various countries, and he did not have the authority to make any sole decisions in the company.

"Although Gambaryan has retired from official service in the U.S. government, he remains fully committed to his role as a law enforcement officer, serving as a global advocate for transparent financial regulation practices. Binance asks not to hold Tigran Gambaryan accountable, as he did not have the authority to make decisions in the company," Binance said in an official open appeal to the Nigerian authorities.

 

[Father]

On April 8, a court in Nigeria considered the complaint of Tigran Gambaryan, vice President for global intelligence and investigations of the Binance cryptocurrency exchange, who is accused of tax evasion and money laundering in the amount of $35 million. This is reported by DL News.

The top manager did not admit his guilt and claimed violation of his rights. The defense also insists that he should not be held responsible for Binance's operations in Nigeria.

However, the court rejected this argument, recalling that Gambaryan conducted educational trainings for Nigerian officials as a representative of the exchange during past trips.

As a result of the meeting, the top manager was placed in a high-security detention center in the capital Abuja until at least April 18. A possible bail hearing is scheduled for that date.

The trial of Gambaryan and Binance is scheduled for May 2.

 

[Tomcat]

The Binance cryptocurrency exchange received over $20 billion in revenue in Nigeria in 2023 alone, but did not pay taxes. This was stated to local media by the country's Information Minister Mohammed Idris.

According to him, the trading platform's turnover significantly "exceeded the federal budget for healthcare and education, which fuels currency speculation and the cost of living crisis."

"Binance is not registered in Nigeria and has never paid any taxes within the Nigerian jurisdiction, all the while operating without oversight or any of the usual security fences to detect criminal activity," Idris added.

The Minister also commented that Binance top manager Tigran Gambaryan, who is in custody, was detained for helping to devalue the naira exchange rate and conduct unregistered business activities in Nigeria.

Idris denied any speculation that the country's government had taken an exchange employee hostage. He believes that the Binance case in Nigeria is being handled within the framework of the law, and the exchange has repeatedly been the subject of investigations in other jurisdictions.

Earlier, members of the US Congress and a group of American ex-officials called on President Joe Biden and Secretary of State Anthony Blinken to help bring Gambaryan back to his homeland.

Recall that the Nigerian authorities accuse Binance Holdings Limited, Tigran Gambaryan and the exchange's director in West and East Africa, Nadim Anjarwalla, of tax evasion. Separately, they are charged with laundering at least $21.6 billion and conducting specialized financial activities without a license. The company and top managers deny any wrongdoing.

Earlier, Gambaryan was refused bail, fearing that he might run away. Anjarwalla secretly flew from Nigeria to Kenya in late March. However, the authorities tracked him down there and are preparing to extradite him.

The exchange was required to provide data of all users from Nigeria and their transaction history. The platform was also required to settle any outstanding tax obligations.

Binance is potentially facing a $10 billion fine.

 

[Friend]

Binance's Vice President of Global Intelligence and Investigations, Tigran Ghambaryan, appeared at the resumed hearings in a Nigerian court on crutches due to the refusal to provide a wheelchair. The Block writes about this with reference to a statement from the defendant's family.

The authorities of the African country are holding a top manager with American citizenship in prison for six months. His physical and mental health deteriorates due to a herniated disc, as well as bouts of pneumonia, malaria and tonsillitis.

The family reported that Gambaryan was in obvious pain and at some point burst into tears in court.

Lawyers filed a new petition for his release on bail for medical reasons. They also challenged the ban on access to the client in Kuje prison, which prevents them from preparing for the hearings.

Prosecutors at the Economic and Financial Crimes Commission said Gambaryan was not ill and refused treatment. At the same time, according to his relatives, the authorities were handed over medical documentation, according to which he was recommended an urgent operation. According to them, some of the key records have disappeared from the case.

The judge ruled to allow Ghambaryan to use a wheelchair. Consideration of the petition for his release on bail will continue on September 4.

"My husband was illegally detained by the Nigerian government after being invited to a meeting in their country under false pretenses. During this long detention, his health continues to deteriorate, and he is now in so much pain that he can barely walk. The U.S. government must do more to help Tigran," his wife Yuki said.

She added that the authorities deny Ghambaryan's health problems and conceal the medical indications provided by him. Some of the documents were made public only during the last court session.

"This whole situation is inhumane and humiliating, and I am fed up. This disregard for the law and human rights must have consequences," Yuki added.

 

[Man]

The Nigerian government has dropped all charges against the top manager of the Binance cryptocurrency exchange, Tigran Ghambaryan.

The main reasons for the termination of the criminal prosecution are diplomatic interference and the degree of involvement of the defendant in the alleged crimes.

"The government has examined the case and, taking into account that the second defendant (Ghambaryan) is an employee of the first defendant (Binance Holdings Limited), whose status in this case is more important than that of the second defendant, and taking into account some important international and diplomatic reasons, the state seeks to dismiss the case against the second defendant", the prosecution lawyer said.

The top manager's lawyer, Marc Mordi, agreed with the prosecutor's office, saying that his client was not involved in the company's larger financial decisions.

The prosecution also referred to Ghambaryan's deteriorating health during detention and the need for surgery:

"The state of health of the accused is an ongoing problem that the state successfully manages in the correctional center with the help of the National Security Adviser".

The court ordered Ghambaryan's immediate release from prison, but did not acquit. According to the prosecution, the case is still under consideration and the interrogation of witnesses continues. The lawyer stressed that the charges were dropped from the top manager of Binance due to poor health, "and not due to insufficient evidence".

Gambaryan left Nigeria. Binance is now the only defendant in the case. The next court hearings are scheduled for November 22 and 25.