Binance CEO's Personal Long-read: How Did Nigeria Executives End Up "Behind Bars," and What Exactly Happened?
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Binance CEO's Personal Long-read: How Did Nigeria Executives End Up "Behind Bars," and What Exactly Happened?
Naira depreciation, economic crisis... Nigeria has blamed it all on Binance.
Navigating Web3 tides with focused insightsAuthor: Richard Teng
Translated by: Odaily Planet Daily Azuma
As you know, one of our colleagues, Tigran Gambaryan, has been detained by Nigerian authorities for over 70 days. This matter has triggered numerous public comments, and I would like to take this opportunity to clarify certain facts in order to prevent an unjust distortion of public perception. Moreover, I believe it is necessary to express some views on behalf of global business organizations—detaining employees of a company after inviting them to participate in discussions under the pretext of policy consultation sets a dangerous precedent for all global companies.
First, let me introduce Tigran. Since joining Binance, I have come to know him better and developed increasing admiration for him. Yet, ironically and tragically, this top-tier global financial crime fighter—widely respected across both private and public sectors—is now detained in Nigeria for over two months over questionable grounds.
Tigran has dedicated his entire career to combating financial crime. His decade-long service with the Federal Police was documented in the book "The Tracker in the Dark: The Global Hunt for a Cryptocurrency Crime Boss," and we published a blog post several weeks ago further highlighting his outstanding achievements in crime-fighting.
After leaving his role as a special agent at the U.S. Internal Revenue Service, Tigran joined Binance to continue his life’s work. He recognized that working at the largest company in the emerging cryptocurrency industry would allow him to more effectively combat bad actors and uphold market integrity. Anyone who has transitioned from public service to the private sector can tell you that sometimes, working within a large-scale private company can create greater positive impact.
With this background, Tigran was hired by Binance in 2021 to help build and strengthen law enforcement cooperation and other compliance initiatives aimed at preventing financial crime. As head of Binance’s Financial Crimes Compliance team, Tigran has consistently advocated for strong policies and regulatory adherence, setting new standards for the industry. Between 2022 and 2023, his team assisted global law enforcement agencies in freezing and seizing assets worth over $2.2 billion, including over $285 million frozen in collaboration with agencies such as the U.S. FBI, Department of Justice, and Drug Enforcement Administration.
Finally, it should be emphasized that Tigran did not travel to Nigeria as a “decision-maker” or “negotiator,” but simply as an expert participating in discussions on financial crime and policymaking.
Local Regulatory Context in Nigeria
I believe revisiting some background context will help reconstruct the history of our activities in Nigeria. In fact, this story began nearly two years ago.
2022–2023
In May 2022, the Nigerian Securities and Exchange Commission (hereafter SEC) issued regulations on digital assets, bringing cryptocurrencies under its regulatory scope. These rules required crypto exchanges operating in Nigeria to obtain licenses from the SEC and comply with certain requirements. However, the regulations failed to clearly define key licensing criteria—such as application procedures and fees—making it practically impossible to apply for a license.
Binance proactively reached out multiple times to the SEC, seeking practical guidance on the licensing process and proposing consultative engagement with Nigerian authorities.
For example, in a letter dated June 22, 2022, Binance stated: “We welcome and appreciate the opportunity to collaborate with the SEC and other industry participants in the Blockchain Alliance to further clarify the application of the new rules in the coming days, particularly regarding the Central Bank of Nigeria’s position on these rules, the fee structure for registration, and the impact of registration on facilitating access to local bank accounts.”
However, Binance never received any response from the SEC. To our knowledge, no virtual asset service provider (VASP) has obtained a license under the new framework to date.
Nearly a year later, on June 9, 2023, the SEC posted a public notice on its website warning the Nigerian public about Binance’s operations and instructing Binance to immediately cease attracting Nigerian investors. The notice stated: “Binance Nigeria Limited is not registered with or regulated by this Commission, and therefore its operations in Nigeria are illegal… By this notice, Binance Nigeria Limited is hereby directed to immediately stop soliciting Nigerian investors in any form.”
The reference to “Binance Nigeria Limited” was incorrect. Binance Nigeria Limited has no connection to Binance; it was registered by a third party, likely intending to profit from Binance’s potential local services in Nigeria. Nevertheless, it was clear that the SEC was targeting Binance itself.
Recognizing that the SEC intended this notice for the real Binance, Binance immediately suspended all investor outreach activities in Nigeria, including paid advertising, SEO, online and offline events, and all user communications. These restrictions remain in place today.
In the letter we sent to the SEC at the time, we reaffirmed Binance’s “full commitment to cooperate with the Commission and comply with applicable regulations” and requested a meeting (noting that Binance had previously requested meetings without receiving responses from the SEC).
Once again, the SEC did not respond. We continued efforts to maintain constructive engagement and, on March 29, 2024, submitted feedback on their revised rules.
In August 2023, we decided to engage through Nigeria’s digital asset industry. We began supporting the Digital Currency Consortium (DCC), an industry association formed by local and international digital asset service providers in Nigeria, aiming to advance regulatory dialogue and improve cryptocurrency regulations.
In November 2023, we did something we’ve done globally with law enforcement: Binance conducted law enforcement training for the Nigerian Financial Intelligence Unit (NFIU) and the Economic and Financial Crimes Commission (EFCC). These efforts not only enhanced global efficiency in fighting cryptocurrency-related crimes but also served as crucial relationship-building tools enabling Tigran’s team to work more closely with law enforcement.
In early December 2023, Binance received a letter from the Chairman of the House Committee on Financial Crimes requesting our attendance at a public investigative hearing within less than two weeks.
2024
Ultimately, through informal channels, we reached agreement with the committee to reschedule the hearing to January 10, 2024, allowing sufficient time to prepare and send a delegation of Binance employees well-versed in the relevant issues.
Tigran Gambaryan and several other members of our team traveled to Nigeria to attend this meeting and related discussions. On January 5, Binance staff met with the Nigerian Financial Intelligence Unit (NFIU) to discuss information sharing and ongoing capacity building. The parties agreed that NFIU would next share a draft memorandum of understanding (MoU) outlining proposed terms and conditions for sharing anti-money laundering-related information.
On January 8, Binance employees held a face-to-face meeting with three members and one clerk of the House Committee on Financial Crimes (HCFC) at the National Assembly complex in Abuja. This was a scheduled private pre-meeting, chaired by Peter Akpanke, Philip Agbese, Peter Aniekwe, and a clerk.
During the discussion, the committee stressed the seriousness of the issues and their determination to prosecute Binance, including issuing arrest warrants for our team and CEO and prohibiting our team from leaving the country. Although concerning, we understood that the HCFC does not actually possess the authority to issue arrest warrants.
The committee confirmed that a public hearing would be held on January 10, where Binance would have the opportunity to publicly respond to any allegations in front of petitioners, media, and over 30 institutions.
Despite repeated requests, Binance had not yet received detailed information about the allegations. Therefore, our staff asked whether they could submit a written response instead of attending the public hearing. There were many reasons for this, including the sensitivity of information and the need to prepare a more substantive response after reviewing full allegations. At the end of the meeting, the chairman confirmed they would consider the request and respond through Binance’s local counsel.
However, as our staff left the venue, they were approached by unidentified individuals suggesting payment of a sum to settle the allegations. Later that day, our local counsel—at the time representing us—was summoned by someone claiming to represent the committee, who conveyed the committee’s terms and instructed our lawyer accordingly. Our lawyer reported receiving a demand for a large cryptocurrency payment to be made secretly within 48 hours to resolve the matter, requiring us to make a decision by morning. Our team grew increasingly concerned for their safety in Nigeria and left immediately. Of course, we rejected the payment request through our lawyer, as we did not view it as a legitimate settlement offer, and clarified that we would only engage in settlement negotiations if the following conditions were met:
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Binance must receive the relevant complaint and/or detailed information on all allegations;
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Any settlement must be official, documented in writing, and signed by all relevant parties;
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The settlement must involve all relevant institutions and ensure comprehensive resolution of all allegations (including, if applicable, any potential historical tax liabilities);
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While specific settlement terms may require confidentiality, there must be a public statement acknowledging the resolution;
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No public hearing should occur before settlement discussions;
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Our contractors and employees must not face intimidation, harassment, or detention.
Our lawyer communicated Binance’s conditions, which were initially opposed. However, we were informed by our lawyer that the committee ultimately agreed to these terms.
Shortly after returning from this trip, NFIU shared a draft MoU outlining Binance’s voluntary commitments to submit suspicious activity reports (SARs) and suspicious transaction reports (STRs), provide training to law enforcement in Nigeria and beyond, and mutual cooperation. We viewed this as a positive development in collaborative efforts to make cryptocurrency safer and keep it out of criminal hands.
On February 5, a Binance advisor with close local connections suggested we meet with the Director of the Office of the National Security Adviser (ONSA). This director would become Binance’s central point of contact in Nigeria. We again saw this as a positive step, as it would allow us to communicate centrally through a highly respected and senior figure in Nigeria’s law enforcement community, rather than dealing separately with multiple agencies/departments.
In early February, our team discussed the possibility of a meeting with ONSA and Nigeria’s Economic and Financial Crimes Commission (EFCC). In an email, we outlined our critical role in global law enforcement operations. We collaborate with law enforcement agencies worldwide on investigations and provide support when needed. In particular, we have established solid and productive relationships with Nigerian counterparts, including EFCC. The proposed agenda for Binance’s meeting included:
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An introduction to Binance, our global operations, and compliance procedures;
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Binance’s current cooperation with EFCC and the Financial Intelligence Unit;
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An overview of engagement with SEC, the good-faith measures Binance has taken to comply with SEC directives, and how ONSA could assist in shaping future direction;
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Suggestions from HCFC and ONSA regarding the meeting;
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Strategies to enhance cooperation with ONSA and strengthen bilateral relations.
The meeting was scheduled for 2:00 PM on February 26, 2024, at the ONSA office in Abuja. Government representatives confirmed to attend included the National Security Adviser, the SEC Chief Executive, and the Deputy Governor of the Central Bank of Nigeria (CBN).
Despite obvious risks, Tigran Gambaryan and Nadeem Anjarwalla (Binance’s Head of Africa) received multiple assurances of safe passage to attend these meetings safely.
Concerns About Naira Depreciation and P2P Services
During this period, Nigeria’s official currency, the naira (NGN), underwent sharp depreciation, with some observers calling the current situation the worst financial crisis in generations. While many cryptocurrency platforms operate in Nigeria—and continue to do so—Binance was then the dominant platform in the region, and Nigerian traders used Binance’s P2P product to hedge against currency depreciation. We began noticing concerns that merchant pricing on the P2P platform was influencing the country’s foreign exchange rates.
Binance’s P2P team engaged with the local community. We learned that due to the lack of an official reference foreign exchange rate in Nigeria, Nigerians—whether using cryptocurrency or not—were using average prices from P2P ads as a reference for FX rates.
Although P2P ad prices are real-time and fluctuate with market movements, they do not always reflect actual transaction prices. Binance does not set P2P prices—in fact, P2P trading is entirely peer-driven, with individuals directly buying or selling specific cryptocurrency or fiat pairs. This is essentially a cryptocurrency marketplace.
The usage level, market depth, and liquidity of P2P products are inferior to centralized exchanges. Due to lower liquidity and higher volatility, users may see price spikes on P2P markets that do not necessarily reflect actual asset values, nor do they always translate into executed trades. Some in Nigeria’s local community believed these price fluctuations might constitute price manipulation, and since merchants widely use P2P ad prices as FX references, some concluded Binance was partially responsible for the country’s FX volatility and currency depreciation.
Of course, the factors affecting FX rates are complex and primarily driven by macroeconomic policies.
Cato Institute: Nigeria’s Government Is Blaming Binance for Its Own Mismanagement
Applied Economics Professor Hanke: Nigerian Government's Crypto Claims Are 'Misguided and Incorrect'
Meanwhile, our P2P team continued implementing several measures, including removing ads with anomalous pricing, imposing restrictions on relevant users, and separately controlling buy/sell limits. We also planned to add a “last traded price” display so the market would no longer treat price peaks as indicative of market value. Below are several blogs we published at the time, clearly stating our commitment to providing users with a market-driven, fraud-free, and manipulation-resistant platform. We take user protection extremely seriously. To emphasize this, we explicitly stated that users engaging in malicious or manipulative behavior would be removed from the platform.
February 20, 2024 blog: Binance’s commitment to P2P users in Nigeria
February 21, 2024 blog: Securing Trust: Binance Affirms User Funds and Operational Integrity Amid Market Dynamics in Nigeria
What Happened at That Meeting?
On February 26, Tigran and Nadeem traveled to Nigeria for the scheduled meeting, having received multiple safety assurances as previously noted. In the first session, they met with leaders from ONSA, the Presidential Office, the Central Bank, NFIU, EFCC, and SEC.
The atmosphere was neutral—neither friendly nor hostile. Overall, the meeting lasted about two hours and achieved some progress.
One of the EFCC leaders who had built a rapport with Tigran over recent months pulled them aside and assured them everything was going well, and that Tigran and Nadeem had nothing to worry about. Subsequently, Binance staff were told another meeting would soon take place, involving top leadership from ONSA, CBN, SEC, and the Ministry of Communications, Innovation, and Digital Economy.
After waiting for over two hours, Binance staff were invited back into the meeting room, but the attendees differed from the previously announced list—specifically, four EFCC members were present.
During the second meeting, the group leader adopted a confrontational stance. He claimed the Binance issue involved national security and presented the following demands:
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Remove the naira from the Binance platform (this was the first time Nigerian authorities explicitly made this demand to Binance);
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Provide detailed information on all Nigerian users;
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Provide financial/tax compliance information;
They further explained that until Binance met these demands, Tigran and Nadeem would remain their “guests,” held for “security reasons” in a “high-security” residence. Additionally, they demanded that Tigran and Nadeem hand over their passports.
After the meeting, Tigran and Nadeem were escorted back to their hotel, told to pack their belongings, and transferred to an “secure residence” controlled by ONSA. Their phones were confiscated, and they were explicitly told not to leave. Tigran and Nadeem lost control over whom they could speak with and when.
From that moment onward, Tigran, a U.S. citizen, and Nadeem, a British/Kenyan citizen, were detained. Within the first few hours of detention, the British High Commission and the U.S. Embassy were informed about Tigran and Nadeem’s situation.
The next day, Binance’s legal counsel emailed the head of ONSA requesting “urgent clarification of the legal basis for detaining its employees,” noting that embassies from their respective countries (the U.S. and UK) had been notified. Our message further stated: “We understand from yesterday’s conversation with you that your primary concern is the naira being tradable on the Binance platform—a matter we were hearing about for the first time. We can remove the naira from Binance. However, we request your assurance that Tigran and Nadeem be immediately released, with no restrictions on their movements, including departure from Nigeria.”
That day, ONSA replied via email stating that Tigran and Nadeem were their “guests” and were being “warmly hosted.”
We subsequently received confirmation that the U.S. and UK governments were aware of the situation and were closely monitoring developments.
Over the next 24 hours, Tigran and Nadeem faced intense treatment, accused personally of responsibility for the naira’s performance and the overall economic condition, and confronted with allegations of terrorism financing and money laundering.
On February 28, we removed naira trading pairs from our website and shut down Binance’s P2P product for Nigeria. We emailed ONSA to inform them of our actions and requested immediate facilitation for Tigran and Nadeem to “safely proceed to the airport.”
That day, we received no official reply from ONSA.
On that day, the same EFCC leader who had built a relationship with Tigran over previous months broke down emotionally, apologizing to Tigran, saying it was his fault because he had assured Tigran and Nadeem everything would be fine and the meeting would be friendly.
Soon after, news of Tigran and Nadeem’s detention spread globally in the media. Nearly a month later, on March 23, we learned that Nadeem had left the unlawful detention site. Since then, Tigran’s situation has deteriorated further.
What Is the Current Situation?
On April 25, during Tigran Gambaryan’s bail hearing, the prosecutor from Nigeria’s Economic and Financial Crimes Commission (EFCC) told the court: “Since the first defendant (Binance) operates virtually, the only person we can rely on is this defendant (Tigran).”
The Nigerian government’s intention is crystal clear: they must detain an innocent employee, formerly a U.S. federal officer, imprison him in a dangerous jail, in order to control Binance.
Since becoming CEO of Binance, I have remained committed to collaborating with global regulators and law enforcement to protect the integrity of the global financial system.
Over the past two and a half years, Binance has worked diligently to restructure our organization and personnel and upgrade our systems. We have brought in new leadership with extensive compliance experience and distinguished backgrounds from top traditional financial institutions, leading tech companies, law enforcement agencies, and major corporate entities.
Today, Binance’s leadership team, including myself, reports to the Board of Directors. As corporate stewards, the board protects the company’s interests and makes key decisions to ensure long-term sustainability and longevity. Through this process, we have become stronger, safer, and more compliant, offering users a more secure platform. Our business has undergone a transformation.
This ordeal has caused deep pain for Tigran, his family and friends, and the entire Binance community. As mentioned earlier, to eliminate doubts about our role in the country’s currency crisis, I made the difficult decision earlier this month to shut down Binance’s P2P product for the Nigerian market and terminate all naira-paired spot trading. We took these drastic measures hoping our colleague would be released and that Binance could continue working with the Nigerian government to resolve outstanding issues. Unfortunately, this did not happen as expected.
We will continue to support Tigran unconditionally and unwaveringly.
Once Tigran returns home, Binance will, as we have done over 600 times before, voluntarily cooperate with Nigerian law enforcement agencies. We will always strive to protect innocent users and not tolerate bad actors on our platform. We will persistently collaborate with public and private partners to root out misconduct. Furthermore, we will continue working with the Federal Inland Revenue Service of Nigeria to resolve any potential historical tax issues.
I still do not understand why Nigerian government officials refuse to accept this solution. The Nigerian government holds extraordinary power to determine the future of Binance and the broader cryptocurrency industry within its jurisdiction. Binance hopes to build a future alongside the Nigerian government, helping construct a robust economy for the Nigerian people. But this crisis must be resolved quickly—if we are to move forward, Tigran must be allowed to return home.
Binance remains committed to innovative approaches using digital assets and platforms, but we must also build a future in which we act, as we see ourselves, as responsible global citizens.
I want to extend my deepest gratitude for the overwhelming global support we have received during this crisis, and I hope my next update will bring the news that our employee is safely back home, reunited with his family.
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