Binance’s woes are spiraling in Nigeria as the family of a detained executive appeals for US intervention.
It’s been the worst start to the year for Binance in Nigeria. It started with suspicions of Naira exchange rate manipulation and quickly expanded to suspicions of operating an unlicensed platform and tax evasion.
The Nigerian government arrested two executives. One escaped custody for unknown reasons, but the other remains detained as his family pleads for the U.S. government to intervene.
Nigeria shuts down Binance and arrests 2 officials
Binance’s woes in Nigeria began this year with some government officials blaming Binance for the currency woes. Under President Bola Tinubu’s leadership starting in May 2023, the naira has lost 75% of its value against the US dollar.
Fingers started pointing fingers at Binance earlier this year, with the country’s Bureau de Change operator being the first to criticize the exchange. Government officials then accused the exchange of encouraging “sophisticated robbery” of the economy.
Then, charges of tax evasion were filed against Binance for allegedly failing to register with the Federal Inland Service. Soon after, the country’s anti-corruption agency charged Binance with laundering more than $35 million.
The government’s summons to Richard Teng, who took over as CEO after Changpeng Zhao resigned, was ignored. In his place, two senior officials, Tigran Gambaryan and Nadeem Anjarwalla, landed in Nigeria for talks with the government. The former, an American, is a former IRS employee responsible for financial crimes compliance, while the latter, a British resident living in Kenya, is the company’s regional manager for Africa.
When the talks broke down, the government detained the two men for two weeks and then obtained an order from the court to extend their detention. But in a daring Hollywood twist, Anjarwala escaped custody by slipping away from guards while visiting a local mosque for Ramadan prayers. He remains active and Nigerian authorities are working with Interpol to track him down.
Binance official denies call for U.S. intervention
His colleague managed to escape using a second passport he had hidden while in custody, but Gambarian remains in custody. Attempts by his legal team to secure his release were futile.
This led his wife to appeal to the US government to intervene to secure his release.
In a recent statement, Yuki Gambaryan accused the Nigerian government of detaining her husband for a month “without even charging him with a crime.” She claims her own husband is being used as a pawn between her exchange and West African governments. In similar situations, authorities go after the company, not individuals outside of top management, she added.
“To put it simply, my husband is being blackmailed,” she said.
Yuki’s plea was directed to an American congregation that visited Nigeria last week. The congregation, led by Senators Cory Booker (D-NJ) and Sarah Jacobs (D-CA), was full of praise for President Tinubu and applauded him for promoting democracy in the country. There is no mention of Binance Saga.
Binance was the first to fall in Nigeria after being accused of operating without registering with tax authorities, lax KYC measures, illegal forex activities and money laundering. But it may just be the first of many.
Along with Binance, the government has banned access to other global exchanges such as Kraken and Coinbase (NASDAQ: COIN), all of which were providing similar services to Binance, although they did not go after other exchanges. It may only be a matter of time before you turn your attention.
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