Nigeria releases American crypto executive after dropping money laundering case

An American cryptocurrency executive held in Nigeria for the past eight months has been released after authorities there announced they were ending his money laundering trial on health and diplomatic grounds.

Tigran Gambaryan, Binance’s head of financial crime compliance, was freed on a humanitarian basis and was returning to the United States to receive medical attention, White House national security adviser Jake Sullivan said in a statement Thursday announcing the release.

“I am grateful to my Nigerian colleagues and partners for the productive discussions that have resulted in this step and look forward to working closely with them on the many areas of cooperation and collaboration critical to the bilateral partnership between our two countries,” Sullivan said. He said he had spoken with Gambaryan's wife “to share the good news.”

Gambaryan was arrested in February during a business trip to Nigeria alongside Nadeem Anjarwalla, the company’s regional manager in Africa, who fled custody and remains at large.

Nigerian authorities had accused Binance, the world’s largest cryptocurrency exchange, and Gambaryan of using the platform to launder up to $35 million and to manipulate the local naira currency, which they deny.

Nigeria is Africa’s largest crypto economy in terms of trade volume, with many citizens using crypto to hedge their finances against surging inflation and the declining local currency.

But as its users grew and the government struggled to stabilize the currency, officials alleged without providing evidence publicly that the platform was being used to launder money and finance terrorism, forcing it to stop all trading with the local currency on its platform.

On Wednesday, R.U. Adaba, a prosecuting lawyer with Nigeria’s Economic and Financial Crimes Commission, told the Federal High Court in Nigeria’s capital, Abuja, that the government was ending the case after “taking into consideration some critical international and diplomatic reasons."

Binance still faces charges on suspicion of tax evasion and operating without the required license.

Gambaryan’s trial has been shrouded in controversy, including over allegations that he and his colleague were illegally detained and their passports seized. Binance also alleged that Nigerian officials demanded bribes to release him and Anjarwalla.

The Nigerian government denied the bribery allegation and defended the prosecution as following the rule of law.

Gambaryan’s health deteriorated as his court case dragged on. The court in Abuja denied him bail twice after a judge ruled he was a flight risk and that he should remain at the Kuje prison in the capital city.

By Chinedu Asadu, AP

Related story: Nigeria drops money laundering charges against Binance executive

Nigeria drops money laundering charges against Binance executive

Nigeria's government has withdrawn a money laundering case against Binance executive Tigran Gambaryan to allow him seek medical treatment abroad, the government's lawyer said on Wednesday.

Gambaryan, a U.S. citizen and head of financial crime compliance at Binance, has been in detention in Nigeria since late February and has been charged with laundering more than $35 million. Gambaryan and Binance deny the charges.

The government's lawyer said it would continue the money laundering case against Binance without Gambaryan. Separate tax evasion charges against Binance, the world's largest crypto exchange, remain in place. Binance has also denied those charges. 

Reuters

Related story: Binance exec and former U.S. agent Tigran Gambaryan denied bail by Nigeria

Binance exec and former U.S. agent Tigran Gambaryan denied bail by Nigeria

 It has been almost eight months since Binance executive and former IRS agent, Tigran Gambaryan, has been wrongfully detained in Nigeria over a feud between the African nation and the world’s largest crypto exchange. In the latest blow to his fight for freedom, he was denied bail by a Nigerian judge on Friday despite his deteriorating health.

Gambaryan was jailed in February after visiting Nigeria to address allegations that Binance was undermining the local currency, which began to crash in May 2023. Economists have laid the blame for this on corruption and economic mismanagement by the country’s leaders—but, in what critics say is an effort to find a scapegoat, Nigerian officials arrested Gambaryan and another Binance executive and charged them with financial crimes.

Since his detention, Gambaryan’s condition has worsened significantly. He is now being held at Nigeria's notorious Kuje prison alongside members of the Boko Haram terrorist group and has been denied access to his legal team. Throughout his time in prison he has suffered from malaria, tonsillitis, pneumonia, and complications from a herniated disc in his back which requires “high-risk specialized surgery.”

While he sits in a cell thousands of miles away from his wife and children in Georgia, U.S. representatives and Binance executives have intensified calls for his release. His wife, Yuki Gambaryan, has continued to fight for his freedom since he was detained.

Following the hearing on Friday, a Binance spokesperson said in a statement, ”He has been unlawfully detained for over 220 days. Tigran did not go to Nigeria as a decision-maker and there is no good reason to continue to hold him. We are committed to working with the Nigerian government to resolve issues, but Tigran must be allowed to go home.”

While initially reluctant to get involved, U.S. officials began to advocate for Gambaryan’s release over the summer. Most recently, Rep. Rich McCormick (R-Ga.), a member of the Armed Services and Foreign Affairs Committees, called upon the U.S. State Department to take a stronger stance in talks with Nigeria. “All cards should be on the table. We should be putting enormous leverage against Nigeria until they release him or at least turn him over to the consulate to be treated fairly, he get an expedient case with a legitimate charge,” McCormick said on the Illicit Edge podcast.

In June, 16 bipartisan U.S. lawmakers sent a letter to President Joe Biden urging for Gambaryan to be released, while over 100 U.S. prosecutors and special agents sent a similar letter to the U.S. State Department. In the following weeks, Rep. French Hill (R-Ark.) and Rep. Chrissy Houlahan (D-Pa.) visited Gambaryan in the Nigerian prison. Also in June, Nigeria dropped some charges against Gambaryan after FBI director Christoper Wray visited the country on an unrelated matter.

Gambaryan’s ongoing detention came after the State Department negotiated the release of basketball player Brittany Griner and journalist Evan Gershkovich from Russia earlier this year. Both Americans had received a “wrongfully detained” designation, which made their release a top priority with a special agency within the State Department. Gambaryan has yet to receive that designation to the frustration of his family and others, likely because Nigeria is a nominal ally of the U.S.

By Catherine McGrath, Fortune

Related stories: US Urges Nigeria to release Binance executive as health worsens

Video - Detained Binance executive appears in court in Nigeria for tax, money laundry charges

US Urges Nigeria to release Binance executive as health worsens

The US government is urging Nigeria to release an employee of the world’s largest crypto exchange Binance who was arrested in February and has faced worsening health conditions in prison, according to two US State Department officials.

US Secretary of State Antony Blinken raised the issue directly with his Nigerian counterpart in May, as confirmed by the officials. US diplomats, including the ambassador to Nigeria, have since held private discussions with several top Nigerian officials, including the country’s president, finance minister, attorney general, and trade minister, advocating for the employee’s release.

The detained employee, Mr. Gambaryan, 40, has reportedly endured significant medical challenges while incarcerated, including a bout of malaria and complications stemming from a herniated disk.

US diplomats have stressed the need for his release on humanitarian grounds. According to his family, Mr. Gambaryan has not received adequate medical attention, leading to a rapid decline in his health.

Efforts to secure his release have escalated since June, with the State Department repeatedly pressing the Nigerian government over concerns about his lack of proper medical care. Despite this, his supporters are calling on the U.S. to take more decisive action.

Mr. Gambaryan’s wife, Yuki, expressed her frustrations in an interview, saying, “I would be very upset if the US government welcomes Nigerian delegates with open arms,” referring to the upcoming visit of Nigerian officials to New York for the United Nations General Assembly.

As Crypto Briefing reported, in May, Binance CEO Richard Teng demanded the release of Tigran Gambaryan, detained in Nigeria for over 70 days, warning of the dangerous precedent it sets for global businesses.

In June, US lawmakers visited Binance executive Tigran Gambaryan in a Nigerian prison, advocating for his release due to critical health conditions and inadequate care.

By Diego Almada Lopez, Crypto Briefing

Related story: US lawmakers say Nigeria is detaining American to extort Binance

Nigeria’s SEC Approves First Operating License for Local Crypto Exchange Quidax

 In a landmark development, the Nigeria SEC has approved the first provisional operating license for local crypto exchange Quidax.

The regulator’s move marks a milestone in Nigeria’s crypto regulations. Moreover, it could open doors for more crypto exchanges, both locally and internationally, to venture into the country.
 

 

Local Crypto Exchange Bags Nigerian SEC’s First Provisional Operating License

According to a Cointelegraph report, the African-founded crypto exchange Quidax bagged Nigeria’s SEC crypto operating license. This landmark achievement has positioned Quidax as the first crypto exchange to receive a provisional operating license in Nigeria.

Moreover, the regulator’s approval is a milestone in the country’s crypto regulatory advancements. It indicates Nigeria’s readiness to embrace digital assets and legitimize its crypto market.

According to the report, the license offers Quidax the right to operate as a registered crypto exchange in Nigeria. It will also allow the crypto exchange to partner with other financial institutions, including banks, pending approval from the Central Bank of Nigeria.

Quidax CEO and co-founder Buchi Okoro expressed his excitement over the license, which he described as a remarkable feat for the exchange. He also reiterated Quidax’s commitment to its core values, which include customer satisfaction and funds’ safety.

Further, the executive appreciated the SEC’s approval of the crypto operational license. He noted the agency’s positive efforts to establish progressive regulatory measures for the crypto industry.

Also, Okoro mentioned that the SEC, under its new Chair, Dr. Emomotimi Agama focuses on ensuring orderliness, investors’ safety, and confidence in the industry.

Moreover, the executive said the license represents a big win for Nigeria’s crypto industry and shows the country’s readiness to adopt positive changes within the financial digital space.
 

Digital Asset Regulations and Trends in Nigeria

On June 21, the Nigeria SEC released a comprehensive amendment to its regulations on digital asset issuance. The rules also indicated some requirements for offering exchanges, platforms, and custody as part of the Accelerated Regulatory Incubation Program (ARIP).

Notable, ARIP aims to assist virtual asset service providers (VASPs) in complying with new regulatory standards.

However, concerns remain that strict approaches and requirements could limit the growth of local crypto exchanges or the entrance of new ones.

The SEC demands a compulsory minimum upfront capital deposit of 500 million naira ($556,620) from Digital Asset Exchanges and Digital Assets Offering Platforms (DAOs). Also, the

Nigeria’s stringent crypto regulations have forced some crypto companies to exit. The OKX crypto exchange disclosed its operational closure in Nigeria due to changes in local regulatory rules.

The OKX exit tolls the pattern of other prominent crypto exchanges that previously left the country, including Binance and KuCoin.

Despite these, as Africa’s largest economy, Nigeria remains among the countries with the highest crypto adoption globally. In a survey comprising over 15 countries, Nigeria emerged with the most crypto-aware population in the world.

Similarly, Nigeria ranked second in crypto adoption among 154 countries, according to Chainalysis’ “The 2023 Geography of Cryptocurrency.” 

By Rida Fatima, Tech Report

Related story: Nigeria targets crypto accounts worth $38 million in intensified crackdown

Nigeria targets crypto accounts worth $38 million in intensified crackdown

Nigerian authorities have moved to freeze millions of dollars of value held in cryptocurrency wallets, which media reports say is an attempt to cut funding to a protest movement.

The move marks an escalation in a year-long crackdown on crypto use since Nigeria’s central bank alleged in February that crypto platforms enabled money flows through the country from unidentifiable sources.

In a Tuesday briefing to a government council chaired by President Bola Tinubu, National Security Adviser Nuhu Ribadu said his office initiated action to freeze $38 million held as crypto in digital wallets. The accounts allegedly received donations in support of nationwide cost of living protests that were held at the beginning of this month, local media outlets reported.

A separate report by Premium Times detailed screengrabs of what it purports to be a court order in Nigeria’s capital Abuja authorizing EFCC, Nigeria’s financial crimes investigator, to freeze four wallets holding about 37 million USDT, a stablecoin valued at par with the dollar. The wallets “are owned by individuals being investigated for offences of Money Laundering and Terrorism Financing,” the EFCC said according to the purported court order.

It is not clear when the agency began its investigation of the wallets’ owners. The order to freeze did not specify a connection to the protests and was granted on Aug. 9, the protests’ penultimate day. An EFCC spokesperson did not immediately respond to requests for comment by Semafor Africa.


Know More

Nigeria’s crackdown has included shutting off user access to crypto websites and trading platforms, and the arrest of staffers of Binance, one of the world’s largest crypto companies. Authorities have said crypto trading fueled a sharp weakening of the naira currency earlier this year.

Some doubt has been raised as to the content of the crypto wallets targeted by Nigerian authorities.

Two reports on Wednesday argued that two of the wallets contained less crypto than the EFCC’s court order stipulated and that they remained active, while a third wallet was non-existent. KuCoin, a crypto trading exchange that suspended its peer-to-peer service in Nigeria in May and reported by technology publication Techpoint as the owner of one of the four wallets, could not be reached for comment.


Alexander’s view

Nigeria’s latest action against crypto holders is not surprising given the government’s tone all year, but its overlap with cost of living protests suggests a broader security anxiety within government circles.

Despite veiled threats by the army and police to discourage the protests, residents across the country marched earlier this month against the soaring prices of food and other essentials. The protests did not quite last for the scheduled 10-day period as intensity faded after the first few days. Security forces used tear gas and live ammunition on protesters. At least six people were reportedly killed on the first day of demonstrations.

The specter of Russian flags being flown in northern states, where incidents of looting of stores were also attributed to protesters, appears to have evoked a determination to identify and punish leading actors of the protests. Targeting funding sources is one way to do so, as the authorities did in 2020 during protests against police brutality known as #EndSARS.

By Alexander Onukwue, Semafor

Related story: US lawmakers say Nigeria is detaining American to extort Binance

Nigeria to collect 7.5% tax on cryptocurrency transactions

Nigeria government is to receive a 7.5 percent Value Added Tax on Cryptocurrency transactions from users registered in the country from July 8, 2024.

A popular cryptocurrency platform, KuCoin disclosed this in a recent email notice to users in Nigeria.

“We are writing to inform you of an important regulatory update that impacts our users from the Republic of Nigeria.

“Starting from July 8th, 2024, we will begin collecting a Value-Added Tax (VAT) at a rate of 7.5 percent on transaction fees in each trade for users whose KYC information is registered in Nigeria.”

According to official data, cryptocurrency transaction volume is $59 billion yearly.

Meanwhile, Ray Youssef, director of NoOnes, a cryptocurrency platform said peer-to-peer business is worth $500 billion.

In February 2024, the Governor of the Central Bank of Nigeria, Olayemi Cardoso raised the alarm that a suspicious $26 billion was funneled through Binance without a trace.

By Ogaga Ariemu, Daily Post Nigeria

Related story: US lawmakers say Nigeria is detaining American to extort Binance

 

US lawmakers say Nigeria is detaining American to extort Binance

US lawmakers have accused Nigeria of wrongfully detaining an American staff member of cryptocurrency exchange Binance in an attempt to extort money. They urged President Joe Biden and the State Department to quickly intervene in the case.

Tigran Gambaryan, 40, and a company colleague were arrested by Nigerian security authorities in February while on an official visit to the country.

Gambaryan is facing charges of tax evasion, money laundering and engaging in unlicensed financial activities, in a trial that began in May.

“Mr. Gambaryan’s health and well-being are in danger, and we fear for his life,” read a letter dated June 4 and signed by 16 members of the US House Foreign Affairs Committee.

“It is crucial to emphasize that the charges against Mr. Gambaryan are baseless and constitute a coercion tactic by the Nigerian government to extort his employer, Binance,” stated the letter, which also said he had been subjected to harsh treatment and called for swift action to save his life.

Nigeria’s government, responding to the accusations, said it is following due process. “Prosecutors are confident of their case, based on the facts and evidence gathered. Binance will have every opportunity to defend itself in court against these severe charges of financial crimes,” Information Minister Mohammed Idris said on Wednesday.

Gambaryan’s representatives and Binance have demanded his release, stating that he has no decision-making power in the company. They say he should not be held to answer to any alleged company offenses.

Nigerian authorities this year renewed their crackdown on crypto, arguing that trades on platforms like Binance helped weaken the local naira currency even as it evades paying taxes on earnings from its activities. Idris, the information minister, claimed Binance had “a turnover in Nigeria of over $20 billion” in 2023.

The central bank lifted a ban on banks enabling crypto transactions last December but restrictions remain in effect as no institutions have been licensed to carry out crypto transactions in the country. Internet service providers have maintained restrictions imposed in February on user access to the apps and websites of crypto companies, including that of Binance.

The US lawmakers’ claim of extortion mirrors those Binance made in May. Richard Teng, the company’s CEO, said executives were asked by an agent of a Nigerian legislative committee to make “a significant payment in cryptocurrency” to settle allegations of tax violations after a meeting in January this year. Binance declined to make the payment, Teng said.

Gambaryan’s trial will continue in a court in Nigeria’s capital Abuja this month. He has been remanded in the city’s Kuje prison, a maximum security facility that has previously been used to detain alleged extremists affiliated with the militant Islamist group Boko Haram.

THE VIEW FROM WASHINGTON

Changpeng ‘CZ’ Zhao, Binance’s billionaire founder and former chief executive, began serving a four-month sentence in a prison in California this month and will be due for release in September, according to the US Bureau of Prisons website.

The 47-year-old Canadian pleaded guilty to violating US money laundering laws and was sentenced in April. The company also pleaded guilty to operating an unlicensed money transmitting business and agreed to pay a $4 billion fine by the Justice Department.

US Treasury Secretary Janet Yellen denounced Binance for “willful failures [that] allowed money to flow to terrorists, cybercriminals, and child abusers through its platform.”

A group of former prosecutors and federal agents in the US also wrote to US Secretary of State Anthony Blinken, urging him to “step up” efforts to secure Gambaryan’s release, Axios reports.

By Alexander Onukwue, SEMAFOR

Related stories: Binance executive collapeses in court in Nigeria - Trial pushed to June

Court in Nigeria adjourns Binance, executives' tax evasion trial to June 14

Binance executive collapses in court in Nigeria - Trial pushed to June

A Nigerian court on Thursday adjourned a money laundry trial against cryptocurrency exchange Binance and two of its executives to June 20 because one of the defendants was not well enough to stand trial.

Binance and executives Tigran Gambaryan, a U.S. citizen and head of financial crimes compliance, and British-Kenyan national Nadeem Anjarwalla, a regional manager for Africa, have been charged with laundering more than $35 million and engaging in specialised financial activities without a licence.

They have all pleaded not guilty to the money laundering charges.

Gambaryan, who has been in detention since February, is "very ill and requires comprehensive medical attention," his lawyer said in a letter to trial judge Emeka Nwite.

"The applicant broke down yesterday and the medical facility gave him intravenous treatment for malaria," the letter said.

Gambaryan, who also faces four counts of tax evasion alongside Binance and his colleague Anjarwalla, did not appear in court on Wednesday for that trial.

Judge Nwite ruled that Gambaryan should be treated at the hospital requested by his lawyer or any other recommended by prison authorities. He adjourned for the trial to continue on June 20 and 21.

Nigeria blamed Binance for its currency woes after cryptocurrency websites became the platforms of choice for trading the Nigerian naira as the country grappled with chronic dollar shortages and the currency fell to a record low. 

By Camillus Eboh, Reuters 

Related story: Nigeria rejects Binance CEO's bribery claim

Court in Nigeria adjourns Binance, executives' tax evasion trial to June 14

A Nigerian court has adjourned a tax evasion case against Binance to next month for possible arraignment of the cryptocurrency exchange and two of its executives after a trial stalled on Wednesday, the judge said.

The matter stalled because authorities failed to bring Tigran Gambaryan, a U.S. citizen and Binance head of financial crime compliance, to court. No reason was given for Gambaryan's absence in court.

On Friday, an Abuja court ruled that Gambaryan could stand trial in the tax evasion case on behalf of Binance.

The CEO of Binance Richard Teng in May accused Nigeria of setting a dangerous precedent after its executives were invited to the country and then detained as part of a crackdown on crypto. The company is challenging the trials on charges of tax evasion and money laundering.

Binance and its executives Gambaryan and Nadeem Anjarwalla, a British-Kenyan who is Binance's regional manager for Africa, face four counts of tax evasion, including failure to register with Nigeria's Federal Inland Revenue Service for tax purposes.

Anjarwalla escaped custody in March but is still listed on the case, without indicating he was 'at large' - a factor that could stall trial given that Nigerian law requires that parties must be served before the case can proceed, Gambaryan's lawyer Chukwuka Ikwuazom said.

The revenue service lawyer Moses Ideho said Gambaryan was supposed to have been produced in court by Nigeria's prison service and that he did not know why he was not in court.

Judge Emeka Nwite adjourned the possible arraignment of Binance and Gambaryan to June 14.

In addition to the tax evasion trial, Binance and the executives have also been charged with laundering more than $35 million by Nigeria's anti-graft agency, the Economic and Financial Crimes Commission (EFCC). A money laundering trial will be heard on Thursday.

Binance has said it is working closely with Nigerian authorities following the detention of Gambaryan. 

By Camillus Eboh, Reuters 

Related stories: Nigeria rejects Binance CEO's bribery claim

Nigeria rejects Binance CEO's bribery claim

Nigerian authorities on Wednesday denied allegations from Binance's CEO of soliciting bribes, saying the claim was a "diversionary tactic" and an "act of blackmail" aimed at undermining ongoing criminal charges against the company.

Binance, the world's largest crypto exchange, and two of its executives face separate trials on charges of tax evasion and laundering more than $35 million, which the company is challenging.

Tigran Gambaryan, a U.S. citizen and Binance's head of financial crime compliance, remains in custody while British-Kenyan Nadeem Anjarwalla has fled the country.

CEO Richard Teng in a blog post accused unidentified Nigerian officials of demanding a $150 million cryptocurrency bribe to halt the investigations.


In a statement on Wednesday, Nigeria's Information Ministry spokesperson Rabiu Ibrahim said the claims "lack any iota of substance". He accused Binance of attempting to undermine the country's legal proceedings.

"It is nothing but a diversionary tactic and an attempted act of blackmail by a company desperate to obfuscate the grievous criminal charges it is facing in Nigeria," Ibrahim said.

"The facts of this matter remain that Binance is being investigated in Nigeria for allowing its platform to be used for money laundering, terrorism financing, and foreign exchange manipulation through illegal trading," he said.

Nigerian authorities claim the bribery allegations are part of a wider campaign by Binance to discredit investigations against the company, citing similar legal troubles in the United States.

Binance did not immediately comment, but in a statement on Tuesday accused Nigeria of setting a dangerous precedent after its executives were invited for talks and then detained as part of a crackdown on the crypto industry.

Teng's blog is the latest in a dispute that has already seen Binance close in Nigeria.


Nigeria blamed Binance for its currency problems after cryptocurrency websites emerged as platforms of choice for trading the Nigerian naira as the country grappled with chronic dollar shortages.

Binance said in early March it was stopping all transactions and trading in naira.

By Camillus Eboh, Reuters

Related story: Bail Hearing in Nigeria for Jailed Binance Exec Postponed Until May 17

Nigeria to Ban Person-to-Person Crypto Trade in Battered Naira

Nigeria vowed to ban person-to-person cryptocurrency trading in the naira, taking its latest step to corral an industry which the West African nation blames for harming the battered local currency.

Securities and Exchange Commission Director General Emomotimi Agama also told a meeting with fintech professionals on Monday that new rules would be rolled out “in the coming days” covering crypto exchanges, digital asset custodians and other corners of the sector.

“The thing that needs to be done is delisting the naira from the P2P space in order to avoid the level of manipulation that is currently happening,” Agama said. “Recent concerns regarding crypto P2P traders and their perceived impact on the exchange rate of the naira has underscored the need for collective action,” he said in a statement released by the Abuja-based SEC on Monday evening.

Peer-to-peer platforms allow crypto investors to trade directly with one another, rather than via a central intermediary. In such transactions, the traders themselves negotiate the price.

The warning follows Nigeria’s ban on Binance Holdings Ltd., the world’s largest cryptocurrency exchange, and the arrest of two of its executives when they visited the country in February.

One of them fled but the other, Tigran Gambaryan, has been jailed at the Kuje correctional center in Abuja and will go on trial this month where he faces charges of tax evasion, currency speculation and money laundering.

“Manipulations and all forms of activities that undermine our national interest would not be acceptable,” Agama said.

Africa’s most populous nation has seen residents flock into crypto assets as a hedge for weakness in the naira, which has lost 65% of its value against the dollar since the government eased currency rules in June to make the unit more attractive to foreign investors.

Central bank Governor Olayemi Cardoso in February accused Binance of allowing illicit transactions in the naira on its platform, which the authorities subsequently blocked.

“SEC will not hesitate to utilize all the powers within its mandate to handle issues that are negative and pose a threat to national interest,” Agama said. “We ask that those involved in sharp practices that undermine national interest should cease and desist.”

By Emele Onu, Bloomberg 

Related story: Video - Detained Binance executive appears in court in Nigeria for tax, money laundry charges

Bail Hearing in Nigeria for Jailed Binance Exec Postponed Until May 17

Detained Binance executive Tigran Gambaryan will remain in prison in Nigeria until at least May 17, following an Abuja court’s ruling to postpone a scheduled bail hearing until after he is tried on money laundering charges.

Gambaryan, an American citizen and former Internal Revenue Service (IRS) special agent, is Binance’s head of financial crime compliance. He and a colleague, Binance’s regional manager for Africa Nadeem Anjarwalla, a dual U.K.-Kenyan national, were arrested and detained on Feb. 26 after flying to Nigeria’s capital city of Abuja to meet with the Nigerian government at the government’s request.

The Nigerian government had previously accused Binance of enabling currency speculation that crashed its currency, the naira. At first, Nigerian officials denied that Gambaryan and Anjarwalla were under arrest, but the pair were put under house arrest upon arrival and, along with Binance, charged with money laundering and tax evasion a month later.

Gambaryan was moved to the notorious Kuje prison – which also houses suspected members of the Boko Haram terrorist group – after Anjarwalla escaped and fled the country under mysterious circumstances. In a cell phone video filmed after Anjarwalla’s escape on March 23, a distressed Gambaryan said he had no knowledge of his colleague’s escape plans and asked the U.S. government for help.

The government’s response to Gambaryan’s imprisonment has been tepid. According to his family, Gambaryan has received only one visit from the U.S. embassy staff since being moved to Kuje prison and has limited access to his legal team.

“There is no justice in what is being done to my husband. I am in a constant state of grief and anxiety, not knowing what other injustice he is going to be put through,” Gambaryan’s wife Yuki Gambaryan said in a statement. “It is outrageous that Tigran, an innocent man, continues to be kept in a prison cell and the ruling on his bail will not be made until after the trial starts…This is just pure cruelty.”

Both Gambaryan and Anjarwalla have filed suit against Nigeria’s National Security Advisor, Nuhu Ribadu, and the Economic Financial Crimes Commission for violating their human rights.

Gambaryan has pleaded “not guilty” to all of the charges against him, which his family has called “bogus.”

The money laundering trial against Gambaryan and Binance will begin on May 2. The tax evasion charges will be tried separately beginning on May 17.

According to Gambaryan’s family, he will spend his 40th birthday in prison.

By Cheyenne Ligon, CoinDesk

Related story: Video - Detained Binance executive appears in court in Nigeria for tax, money laundry charges

Video - Detained Binance executive appears in court in Nigeria for tax, money laundry charges

One of the two executives from Binance, the world's largest cryptocurrency exchange, detained in Nigeria appeared in an Abuja court on Thursday to face tax evasion and money laundering charges.

Binance and two of its executives Tigran Gambaryan, a U.S. citizen and Binance's head of financial crime compliance, and Nadeem Anjarwalla, a British-Kenyan who is a regional manager for Africa, have been charged with four counts of tax evasion and with laundering over $35 million.

Gambaryan and Anjarwalla were detained on Feb. 26 in connection with a criminal investigation into Binance's activities in Nigeria when they arrived in the country. Anjarwalla escaped from custody and fled the country.

Gambaryan was served with the charges for the first time since his detention during his court appearance and did not take a plea. He will be formally arraigned for the money laundering and tax charges on April 8 and 19, respectively, when his plea will be taken.

Binance itself has not been charged by Nigeria's Economic and Financial Crimes Commission (EFCC), which has argued Gambaryan could face the charges on the exchange's behalf.

Gambaryan's lawyer Chukwuka Ikuazom objected, saying he was "neither a director, partner nor company secretary" and had no written instructions from Binance to face the charges on its behalf.

Ikuazom also argued that since Binance and Gambaryan were jointly charged, he could not take a plea until the exchange, the first defendant in the case, had been served, according to Nigerian law.

Binance, which was not represented in court and had no immediate comment, said on Wednesday that it respectfully requested that Gambaryan, who had no decision-making power in the company, was not held responsible while discussions are ongoing with the Nigerian government.

Gambaryan has asked a Nigerian court to release him.

Nigeria blamed Binance for its currency woes after cryptocurrency websites emerged as platforms of choice for trading the Nigerian naira currency, as the country grappled with chronic dollar shortages. 

By Camillus Eboh, Reuters 

Related stories: Detained Binance executives sue Nigeria's security adviser, anti-graft agency

Detained Binance executive escapes detention in Nigeria amidst probe

Video - Nigeria detains Binance executives

Detained Binance executives sue Nigeria's security adviser, anti-graft agency

Two executives from Binance, the world's largest cryptocurrency exchange, have sued Nigeria's national security adviser's office and the anti-graft agency for violating their fundamental rights and asked the court to set them free.

Tigran Gambaryan, a U.S. citizen and Binance's head of financial crime compliance, and Nadeem Anjarwalla, a British-Kenyan who is Binance's regional manager for Africa, flew to Nigeria following the country's decision to ban several cryptocurrency trading websites and were detained on arrival on Feb. 26.

Anjarwalla fled the country last week and now faces the prospect of an international arrest warrant.
On Thursday, Gambaryan appeared in a Federal High Court in the capital Abuja requesting Judge Iyang Ekwo declare his detention and seizure of his passport by the National Security Adviser and Economic and Financial Crimes Commission (EFCC) "amounts to a violation of his fundamental right to personal liberty" as guaranteed by Nigeria's constitution.

The executives, who said they had not been informed of any offences committed, requested an order to release them and return their passports, a public apology and a restraining order from further detention.

The judge adjourned the hearing to April 8 without making a ruling because lawyers for the Office of the National Security Adviser (ONSA) and the EFCC were not in court.

Gambaryan and Anjarwalla were caught up in a crackdown following a period during which several cryptocurrency websites emerged as platforms of choice for trading the Nigerian currency, as the country battles a chronic dollar shortages. 

By Camillus Eboh, Reuters 

Related stories: Court in Nigeria Orders Binance to Relinquish Data of All Nigerians Trading on its Platform

Video - Nigeria detains Binance executives

Detained Binance executive escapes detention in Nigeria amidst probe

Detained Binance executive escapes detention in Nigeria amidst probe

 Nadeem Anjarwalla, one of the two Binance executives detained in Nigeria has reportedly escaped from lawful custody, according to sources.

These sources revealed that Anjarwalla, aged 38, escaped on Friday, March 22nd, from the Abuja guest house where he and his colleague were being detained, Premium Times reported.

Guards on duty escorted him to a nearby mosque for prayers as part of the ongoing Ramadan fast.

The British national, who also holds Kenyan citizenship, is believed to have departed Abuja via a Middle Eastern airline.

The circumstances surrounding how Anjarwalla managed to board an international flight despite being in custody and his British passport being held by Nigerian authorities remain unclear.

Authorities are reportedly working to uncover Anjarwalla's intended destination to apprehend him and return him to custody.

According to an Immigration official, the Binance executive fled Nigeria using a Kenyan passport. However, authorities are trying to ascertain how he acquired this passport, as he did not possess any other travel documents apart from his British passport when he was detained.

Before now, WIRED reported that Anjarwalla fell ill while in custody, possibly due to malaria, although the precise nature of his symptoms was unclear.

Nadeem Anjarwalla, Binance's regional manager for Africa, along with Tigran Gambaryan, Binance's head of financial crime compliance and a U.S. citizen had travelled to Nigeria after the country banned several cryptocurrency trading websites to halt what the CBN described as continuous manipulation of the forex market and illicit movement of funds.

Upon their arrival on February 26, they were arrested by the office of the National Security Adviser (NSA), and criminal charges were filed against the two executives.

Binance was instructed to provide the Economic and Financial Crimes Commission (EFCC) with detailed data and information regarding all Nigerian traders on its platform.

According to Yemi Cardoso, the governor of the Central Bank of Nigeria (CBN), over $26 billion passed through Binance Nigeria from unknown sources. The government even hit the exchange with a $10 billion fine amidst a crypto exchange probe.

On February 28, 2024, the court granted the EFCC an order to remand the duo for 14 days. Due to Binance’s refusal to comply with the order, the court extended the remand of the officials for an additional 14 days to prevent them from tampering with evidence. The court then adjourned the case till 4 April 2024.

By Adekunle Agbetiloye, Business Insider Africa

Related stories: Nigeria files tax evasion charges against Binance

Court in Nigeria Orders Binance to Relinquish Data of All Nigerians Trading on its Platform

Video - Nigeria detains Binance executives

Nigeria files tax evasion charges against Binance

Nigeria's tax agency has filed tax evasion charges against crypto platform Binance, it said in a statement on Monday.

The cased filed by the Federal Inland Revenue Service (FIRS) in Abuja accuses Binance of four counts of tax evasion.

Binance was not immediately available to comment.

The charges include non-payment of value-added tax (VAT), company income tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform, the FIRS said.

By Camillus Eboh, Reuters

Related stories: Court in Nigeria Orders Binance to Relinquish Data of All Nigerians Trading on its Platform

Video - Nigeria detains Binance executives

 

Court in Nigeria Orders Binance to Relinquish Data of All Nigerians Trading on its Platform

The interim order comes after an earlier report that Nigeria wanted Binance to give information regarding its top 100 users in the nation and all transaction history spanning the past six months.

A Nigerian court has ordered Binance to provide Nigeria’s Economic and Financial Crimes Commission (EFCC) with comprehensive information on all persons from the nation trading on its platform, according to a report by the local news outlet Peoples Gazette.

The interim order comes after an earlier report that Nigeria had asked the crypto exchange to hand over the information regarding its top 100 users in the country and all transaction history spanning the past six months. But Justice Emeka Nwite from the Abuja Division of the Federal High Court appears to have granted the motion of EFCC’s lawyer, Ekele Iheanacho which sought information on any Nigerian trading on Binance.

The EFCC is Nigeria’s law enforcement agency that investigates financial crimes.

“The applicant’s application dated and filed February 29, 2024, is hereby granted as prayed. That an order of this honorable court is hereby made directing the operators of Binance to provide the commission with comprehensive data/information relating to all persons from Nigeria trading on its platform,” the judge ordered, the report said.

Nigeria has taken action against the crypto industry for allegedly facilitating illegal capital outflows, which purportedly led to the Nigerian naira weakening to record lows against the dollar. The nation’s authorities have taken a particular interest in Binance’s operations, demanding $10 billion in penalties for enabling some $26 billion of untraceable funds.

Nigerian authorities also detained two of Binance’s senior executives after inviting them into the country to discuss the matter. The court hearing of the two detained Binance executives is scheduled for Wednesday, Reuters reported. Nigerian authorities have also proposed a 400% increase in registration fees for crypto firms.

Binance and the EFCC did not immediately respond to CoinDesk’s request for comment. 

By Amitoj Singh, CoinDesk

Related stories: Nigeria demands Binance disclose top users, executives remain detained

Video - Nigeria detains Binance executives

Nigeria demands Binance disclose top users, executives remain detained

Nigeria is actively seeking information from Binance regarding its top 100 users in the country and all transaction history spanning the past six months, according to a Financial Times report.

This news overlaps with the revelation of the names of the two executives from the cryptocurrency exchange who were detained two weeks ago: Tigran Gambaryan, Binance’s head of investigations, and Nadeem Anjarwalla, the crypto platform’s regional manager for Africa, the Wired reported Tuesday.

Last month, Gambaryan, who was a former crypto-focused U.S. federal agent, and Anjarwalla had their passports confiscated and have been held in confinement at a government facility in Abuja, Nigeria’s capital. Their detainment is part of Nigeria’s broader crackdown on cryptocurrency exchanges, coinciding with questionable efforts by the government to revive the naira, the country’s national currency.

Before their detention, Gambaryan, a U.S. citizen, and Anjarwalla, a dual citizen of the U.K. and Kenya, responded to an invitation from the Nigerian government to discuss Binance operations and the restrictions imposed on the cryptocurrency exchange.

Nigeria’s central bank had expressed concerns about the loss of tax revenue from unregistered crypto exchanges. Additionally, it accused Binance of operating illegally and facilitating “illicit flows from sources and users who we cannot adequately identify,” amounting to $26 billion. As a result, the detained executives may face charges related to currency manipulation, tax evasion and illegal operations, per a Bloomberg report.

However, according to their families, none of the executives have been formally charged with any criminal offenses as of Tuesday. The Financial Times reports that Nigeria’s anti-corruption agency was granted permission to detain both Binance executives for 14 days, which concluded on Tuesday. A proposed hearing to extend the court order is scheduled for Wednesday.

In response to this heightened regulatory scrutiny and contentious negotiation tactics in Nigeria, Binance discontinued its naira (NGN) services last week.

Nigeria’s request for Binance’s top users in the country is the new focal point in negotiations between the largest crypto platform and Africa’s top crypto market. Just last week, local reports claimed that Nigeria’s parliament threatened to issue a warrant of arrest for the company’s executives and summoned Binance CEO Richard Teng to provide explanations regarding investigations into the company’s alleged involvement in money laundering and terror financing.

Meanwhile, documents reviewed by FT reveal that Nigeria, through its national security adviser, has requested that Binance address any outstanding tax liabilities.

By Tage Kene-Okafor, TechCrunch

Related stories: Nigeria plans clampdown on Binance, other crypto firms

Nigeria detains Binance executives in cryptocurrency crackdown

Binance to halt naira services amid ongoing regulatory probe in Nigeria

Binance will discontinue its naira (NGN) services in response to heightened regulatory scrutiny in Nigeria, it said in a blog post today. The cryptocurrency exchange will begin delisting any existing NGN spot trading pairs by Thursday, March 7. It advised users to withdraw, trade, or convert their NGN assets into crypto before the service discontinuation. Any remaining NGN balances in users' spot and funding wallets will be converted to USDT on Friday, March 8, it noted.

By Wednesday, March 6, Binance will also delist NGN services on its auto-invest tool and remove the currency from the list of supported payment options on Binance Pay.

This development follows recent regulatory actions by the Nigerian government, which imposed restrictions on both local and foreign cryptocurrency exchanges, including Binance. As a result, users have encountered accessibility challenges on the Binance website.

Last week, the Central Bank of Nigeria, the country's apex bank, said Nigeria was losing out on taxes from unregistered crypto exchanges and accused Binance of facilitating "illicit flows from sources and users who we cannot adequately identify" to the tune of $26 billion.

What followed was the reported detention of two Binance officials after they were invited to Nigeria to discuss the regulatory restrictions. According to Bloomberg, the officials were held because Binance was operating illegally in Nigeria. The detained officials may allegedly face charges related to currency manipulation, tax evasion, and illegal operations, although formal charges have not yet been filed.

Several reports indicate that the Nigerian government, alleging Binance's involvement in manipulating foreign exchange rates through currency speculation and rate fixing, intensified its scrutiny of the platform by requesting nearly $10 billion in compensation. However, both Nigeria and Binance have refuted these claims regarding the fine.

The ongoing legal dispute between the world's largest crypto platform and Africa's top crypto market is still unresolved. Recently, Nigeria's parliament exacerbated the situation by threatening to issue a warrant of arrest for the company’s executives. Furthermore, they summoned Binance CEO Richard Teng to provide explanations regarding investigations into alleged involvement in money laundering and terror financing, as reported by local sources.

By Tage Kene-Okafor, TechCrunch

Related stories: Nigeria Summons Binance CEO Over Alleged Terror Financing

Video - Nigeria detains Binance executives