Tigran Gambaryan, a compliance officer at Binance, traveled to Nigeria for a business trip in February, only to be detained at Kuje prison in Abuja with no formal charges filed against him. Mr. Gambaryan and a colleague were held in a guesthouse controlled by Nigerian security officials after meeting with government officials. His colleague, Nadeem Anjarwalla, managed to escape under mysterious circumstances last month. Following the escape, the Nigerian government charged Mr. Gambaryan, Mr. Anjarwalla, and Binance with tax evasion and money laundering.
The saga of Mr. Gambaryan’s detention in Nigeria is the latest in a series of legal troubles for Binance, the world’s largest crypto exchange. The company has faced various charges, including violating economic sanctions and allowing criminal activity on its platform. Despite efforts to rebuild its reputation, Binance continues to face challenges in staying on the right side of law enforcement around the world. Mr. Gambaryan’s arrest highlights the ongoing struggle of the crypto industry to navigate legal issues and compliance regulations in different countries.
Nigeria has become a focal point for digital currencies, with high rates of crypto adoption and a growing interest in cryptocurrencies as an alternative to the local currency. The country’s officials have raised concerns about Binance’s operations, accusing the company of facilitating activities that contributed to the devaluation of the national currency. Mr. Gambaryan, a former law enforcement officer, was hired by Binance to work on compliance matters and eventually became one of the company’s most prominent employees outside its executive team.
The troubles began when a delegation of Binance employees traveled to Abuja for meetings with Nigerian officials, who accused the company of tax violations and other crimes. After a tense meeting with Nigerian legislators, where the delegation was warned of potential detention, Mr. Gambaryan and his colleagues cut the trip short and left Nigeria. However, Mr. Gambaryan later returned to Abuja, where he and Mr. Anjarwalla were detained by Nigerian officials following hostile discussions about data sharing and compliance issues.
Mr. Gambaryan and Mr. Anjarwalla were held in a secure compound with no formal charges filed against them. Following Mr. Anjarwalla’s escape, the Nigerian government charged both men and Binance with various criminal offenses. Mr. Gambaryan’s family, friends, and colleagues have been lobbying for his release, with efforts being made to resolve the situation through diplomatic channels. Mr. Gambaryan remains in custody, awaiting a bail hearing in Nigerian court. The incident underscores the challenges faced by crypto companies operating in different jurisdictions and highlights the need for strong compliance measures and regulatory oversight in the industry.
