Binance Executive Continues to be Held in Nigeria Over Accusations of Money Laundering

Binance, the popular cryptocurrency exchange, continues to face legal troubles, with one of its executives remaining imprisoned in Nigeria. Richard Teng, the newly appointed CEO of Binance, has been unsuccessful in his attempts to negotiate with Nigerian authorities for the release of Tigran Gambaryan, another Binance executive who is currently in prison.

Gambaryan, who serves as the head of financial crime compliance at Binance, along with Nadeem Anjarwalla, who has managed to escape the jurisdiction, has been charged with money laundering involving a staggering $35.4 million. The Economic and Financial Crimes Commission (EFCC) alleges that these funds, which were concealed to hide their illegal origins, are the proceeds of Binance’s operations in Nigeria.

The two Binance executives were detained in Nigeria due to allegations of financial misconduct and fraud against Nigerian citizens. They have been found guilty and are currently being held in custody. Yesterday, in Abuja, Justice Emeka Nwite adjourned another trial session related to Gambaryan’s bail application, as the EFCC requested more time to address new issues raised by the defense.

The involvement of CEO Richard Teng signifies a significant development in the situation. Teng is working closely with Nigerian officials in an effort to secure Gambaryan’s release. Speaking at the Token2049 Crypto Conference in Dubai, Teng confirmed that they are in active discussions with Nigerian authorities to resolve the matter.

The continued detention of Gambaryan raises concerns regarding both humanitarian issues and corporate governance. Vishal Sacheendran, Binance’s Head of Regional Markets, emphasized the unprecedented nature of the company’s situation in a recent Reuters interview. He stated, “This was a one-off. It’s never happened to us before.”

The next hearing in this case is scheduled for April 22. The complexities of the case are further compounded by the severe devaluation of Nigeria’s official currency, the Naira, and simultaneous lawsuits from the Federal Inland Revenue Service (FIRS) for tax evasion. The outcome of this case will not only determine Gambaryan’s fate but also have a significant impact on the regulatory landscape for cryptocurrency in Africa’s largest economy.

Tags: Binance