As the Nigerian government files additional charges against Binance, the exchange is scrambling to engage with local regulators.
Binance, one of the largest cryptocurrency exchanges in the world, is embroiled in a complex situation in Nigeria, where it has been actively working with the authorities since local regulators blamed the cryptocurrency exchange for contributing to the collapse of its fiat currency, the Nigerian naira, in February 2024.
With no resolution in sight, the exchange finally issued an official statement regarding its detained executive, Tigran Gambaryan, who faces money laundering charges after five weeks in custody.
Binance Stands by Executive under Custody
According to Binance’s official statement, Tigran Gambaryan, the executive under custody, is portrayed as a former law enforcement professional who is not part of the exchange management. Although he left official U.S. government service, Gambaryan has continued to operate as a global advocate for good governance and transparent regulatory financial practices, the statement states.
Binance states that Gambaryan has no decision-making power within the company and respectfully requests that he not be held responsible. At the same time, talks between Binance and Nigerian government officials continue. The exchange further noted the following:
“Tigran is so well known as the world’s most prominent cybercrime investigator that a book, Tracer’s in the Dark, was written about his efforts to bring down some of the most notorious cyber criminals in history.”
Binance reveals that Gambaryan was hired in 2021 to help the exchange address previous compliance issues. As head of Binance’s Financial Crimes Compliance (FCC) team, the exchange highlights that he has played a “crucial role” in developing compliance policies and capabilities aimed at setting “new industry standards.”
The company also highlights Gambaryan’s track record, stating that his FCC team has helped law enforcement agencies globally freeze and seize assets worth more than $2.2 billion. In particular, they allegedly collaborated with US agencies such as the FBI, DOJ, DEA and others, recovering more than $285 million.
Before joining Binance, Gambaryan allegedly served as a US federal agent, leading high-profile investigations related to national security, terrorist financing, identity theft, child pornography, tax evasion, and violations. of the bank secrecy law.
Nigeria Steps Up Legal Pressure
Despite Binance’s efforts to engage with Nigerian regulators, the situation has become more complicated. The Wall Street Journal reported that Nigeria has filed additional charges against Binance, further intensifying the legal challenges facing the exchange.
Meanwhile, Anjarwalla, another executive involved in the case, managed to escape the country using a fake passport in March, as previously reported by an outlet media. The exchange’s efforts to establish a dialogue with Nigerian regulators have been met with additional charges.
At the same time, the alleged escape of another co-accused executive adds another layer of complexity to the situation. According to local reports Anjarwalla, another co-accused Binance executive, fled detention on March 22 after being taken to a nearby mosque to pray.
Gambaryan and Anjarwalla are listed as the first and third defendants, respectively. Judge Emeka Nwite of the Federal High Court in Abuja would preside over the prosecution of Gambaryan, Anjarwalla and Binance. As the legal battle unfolds, the future of Binance in Nigeria remains uncertain.
Binance Coin (BNB), the exchange’s native token, has maintained a sideways trading pattern above the $556 level in the last 24 hours. This comes after a 32% price increase seen over the last month.
By Leonardo Perez
