In a startling development, two top executives of Binance, the world’s largest cryptocurrency trading platform, were detained on February 28, 2024, in Nigeria. The detention of Tigran Gambaryan and Nadeem Anjarwalla came amidst allegations of bribery involving cryptocurrency, as disclosed by Binance’s CEO, Richard Teng.
The chain of events leading to this dramatic turn began with a pivotal meeting in Abuja on January 8, where Nigerian authorities, represented by a committee comprising approximately 30 agencies, underscored the gravity of the accusations against Binance. However, it later emerged that the committee did not possess the mandate to issue arrest warrants, creating confusion and suspicion.
Subsequent to the meeting, Binance’s employees were accosted by unidentified individuals who demanded a substantial payment in cryptocurrency to settle the allegations. This demand escalated, with Binance’s local legal representative receiving a similar ultimatum for a clandestine payment within 48 hours.
Despite efforts to engage Nigerian authorities in a diplomatic manner, including a meeting with the Office of the National Security Adviser (ONSA), the situation took a hostile turn. Following the meeting, the executives were instructed to wait outside, only to be detained by members of the Economic and Financial Crimes Commission (EFCC) on grounds of national security.
In response to unfolding events, the Federal Government of Nigeria has categorically dismissed the bribery allegations as baseless and a ploy by Binance to evade accountability for purported criminal activities. The government has affirmed its commitment to addressing the legal issues surrounding Binance’s operations within the country.
This unfolding saga raises serious concerns regarding the integrity of cryptocurrency trading platforms and the regulatory hurdles they encounter across different jurisdictions. As the narrative continues to evolve, the global cryptocurrency community and regulatory bodies alike are closely monitoring the developments.
Richard Teng, Binance’s CEO, lamented the ordeal, stating,
“As our employees were leaving the venue, they were approached by unknown persons who suggested to them to make a payment in settlement of the allegations.”
He further added,
“Later that day, our local counsel…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.”
Stay tuned for further updates on this unfolding story.
