Crypto exchange Binance said its subsidiary Tokocrypto has secured a Physical Crypto Asset Trader (PFAK) license from Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti), according to a Sept. 9 statement shared with CryptoSlate.

This development positions Tokocrypto as the third exchange in Indonesia to receive the PFAK license. The country currently has 35 prospective crypto exchanges registered with Bappebti.

Tokocrypto’s growth

Over the past year, Tokocrypto has seen significant growth, with its user base surpassing 4.5 million and monthly trading volume increasing by 138%, signaling growing trust in its services.

Yudhono Rawis, Tokocrypto’s CEO, emphasized the license’s significance in achieving the company’s goal of becoming Indonesia’s leading crypto-asset trading platform. He stated:

“Over the past two years, Tokocrypto has continuously strengthened its commitment to maintaining high standards of regulatory compliance. We are proud of this achievement to become the third exchange to receive PFAK license in Indonesia, the market which has 35 prospective crypto exchanges registered with Bappebti.”

Binance, which fully acquired Tokocrypto in late 2022, had previously held a majority stake in the company.

Richard Teng, Binance’s CEO, praised Tokocrypto’s achievement, describing it as a testament to its dedication to regulatory compliance. He added that Binance remains committed to supporting Tokocrypto’s mission to promote Web3 growth in the region.

He said:

“Binance is committed to fully supporting Tokocrypto in its mission to drive the growth of the Web3 ecosystem in the region.”

Following the news, CoinMarketCap data showed that Tokocrypto’s native TKO token saw a 15% increase to $0.3342.

Binance compliance efforts

This milestone hopes to reinforce Binance’s commitment to regulatory compliance under Teng’s leadership. Over the past months, the exchange has secured licenses in various regions, including Kazakhstan and India.

However, Binance faces challenges in Nigeria, where authorities have detained its executive, Tigran Gambaryan, since February.

US lawmaker French Hill— who visited Gambaryan earlier this year— condemned his continued detention and highlighted concerns over his deteriorating health. He stated:

“This is outrageous. It’s clear Tigran’s condition is rapidly deteriorating – the Nigeran government must release him immediately.”

Mentioned in this article

A Nigerian court has postponed the decision on the bail application for detained Binance executive Tigran Gambaryan until Oct. 9.

Judge Emeka Nwite issued the ruling on Sept. 4 after hearing arguments from both Gambaryan’s lawyer, Mark Mordi, and the prosecuting counsel, Ekele Iheanacho, who opposed the bail request.

New bail application

On Sept. 2, Gambaryan’s lawyer had submitted a new bail application, citing medical reasons and his worsening health conditions. The American citizen reportedly suffers from malaria, pneumonia, tonsillitis, and complications from a herniated disc, which have severely impacted his ability to walk.

Due to this, Modi requested that the court grant Gambaryan bail for six weeks to treat himself.

Notably, a viral video recently showed Gambaryan limping into court, sparking widespread criticism from the crypto community. Critics condemned the Nigerian government’s handling of the situation, with Jeff Roberts, crypto editor at Fortune Magazine, stating:

“Shame on Nigeria‘s government. They took an innocent man hostage in a bid to extort Binance for $10 billion — and are now subjecting him to torture/humiliation.”

Gambaryan reportedly refused treatment

Local media outlet Nairametrics, citing a medical report from the State House Annex Clinic in Abuja, claimed that Gambaryan allegedly refused prescribed medications and food during his detention.

According to the report, a neurosurgeon had recommended medication, physiotherapy, and urgent lumbar discectomy surgery for Gambaryan after he reported long-standing back pain and anxiety, which he had been managing for 12 years.

However, Gambaryan expressed dissatisfaction with the treatment, insisting that a court had directed his care to be provided at Nizamiye Hospital. Consequently, he intermittently refused the prescribed treatment and food in an attempt to secure a transfer to the preferred hospital.

The report also noted that a medical report from the Nizamiye Hospital showed that Gambaryan had a “history of sinusitis and lung infection before his presentation” at the facility.

Mentioned in this article

Binance CEO Richard Teng has condemned the Nigerian government for its harsh treatment of Tigran Gambaryan—the detained American executive of the exchange who the authorities have held since February.

In a Sept. 3 post on X, Teng highlighted a viral video showing Gambaryan struggling to walk into a courtroom and stated:

“This inhumane treatment of Tigran must end. He must be allowed to go home for medical treatment and to be with his family.”

‘I’m a f*cking innocent person’

The viral video shows Gambaryan limping into an Abuja courtroom on Sept. 2. Despite his request for a wheelchair, the prison authorities denied his demands, leaving him to drag his left leg behind him.

Notably, his attempts to use a correctional officer for support were also rebuffed, forcing him to rely on a single crutch. In response to these actions, Gambaryan lamented:

“[The prison guard] was told not to help me. He said there’s instruction – this is f*cked up. Why couldn’t I use a goddamn wheelchair? This is a show. I’m a f*cking innocent person. Why are you doing this to me?”

Observers noted that the video content aligns with concerns from Gambaryan’s family, who have repeatedly stated that his health has deteriorated in Nigerian custody.

On Sept. 2, Gambaryan’s legal team filed a new bail application on medical grounds. They urged the judge to release him so he could receive treatment for conditions he developed in prison, including malaria, pneumonia, tonsillitis, and a herniated disc that has left him in severe pain and nearly immobile.

However, Nigeria’s Economic and Financial Crimes Commission (EFCC) opposed the bail request, claiming that Gambaryan was not in poor health.

The judge has since ordered that Gambaryan be allowed to use a wheelchair, with the case set to continue on Sept. 4.

Detained Binance executive Tigran Gambaryan, facing money laundering charges in Nigeria, made a fresh bail request on medical grounds during his court appearance on Sept. 2, according to a family statement shared with CryptoSlate.

Gambaryan’s legal team cited his deteriorating health in prison as the basis for the application. They reported that his condition has worsened to the point where they cannot meet with him to prepare adequately for the trial.

The legal team expressed deep concern about Gambaryan’s health issues, which include a herniated disc, bouts of pneumonia, malaria, and tonsillitis.

Appearing in court with crutches, Gambaryan informed the judge that prison officials had denied him a wheelchair. He also pleaded with the judge, stating that he is not receiving proper medical care in prison and is being denied basic rights, including access to legal counsel and embassy representatives.

The judge has now ordered that Gambaryan be allowed to use a wheelchair, with the case set to continue on Sept. 4.

Notably, the court had previously denied Gambaryan’s first bail request in May.

Nigerian authorities’ response

The Nigerian Economic and Financial Crimes Commission (EFCC) countered the claims made by Gambaryan and his legal team, stating that his health issues are “not as serious” as presented.

The EFCC reportedly noted that Gambaryan has had a herniated disc for more than a decade.

Gambaryan’s wife, Yuki Gambaryan, expressed deep concern over the Nigerian authorities’ statements dismissing her husband’s health problems.

She said:

“The truth is that the prison has withheld his medical records for months, and even the partial records they finally released today say that Tigran needs surgery. They cannot keep playing games with my husband’s life like this. This entire situation is inhumane and degrading, and I am fed up. There must be consequences for this disregard of law and human rights.”

Mentioned in this article

The Nigerian Securities and Exchange Commission (SEC) has granted two local crypto exchanges— Busha Digital Limited and Quidax— “Approval-in-Principle” to begin operations under the Accelerated Regulatory Incubation Program (ARIP), according to an Aug. 29 statement.

ARIP was specifically designed to onboard operational firms before the May 2022 release of the Rules on Virtual Asset Service Providers.

So, these approvals represent the SEC’s ongoing efforts to foster innovation while ensuring investor protection within the digital asset space. The regulator stated:

“The referenced Approvals-in-Principle are a precursor to the grant of full registration by the SEC and are meant to ensure that appropriate protection and transparency is in place in respect of each product or service.”

Busha CEO Michael Adeyeri stated that the approval was “an overdue step to sanitize the space for the benefit of the economy.” He noted that the approval would allow Nigerian crypto users to access “safe and moderated local venues for managing and trading crypto-assets.”

The local exchange licensing comes as the authorities are clamping down on global exchanges like Binance and OKX.

Over the past months, the Nigerian government has filed legal actions against the Binance exchange and also forced OKX to exit the region due to non-compliance with local regulations.

Other licensed firms

The financial regulator also announced that five other firms have been admitted under Nigeria’s Regulatory Incubation (RI) program.

The RI Program is designed to evaluate the business models of digital asset firms and test innovative products in a controlled environment.

The firms registered under this program include blockchain platform Trovotech, Nigerian stablecoin provider Wrapped CBDC, and real-estate token platform HousingExchange.NG. Others are digital real-estate investment firm Dream City Capital and custodial service provider Blockvault Custodian.

The SEC reiterated that its ARIP and RI programs are the only legitimate avenues for “well-intentioned entities” to introduce their products to the Nigerian capital market. It added:

“The public is strongly advised to refrain from dealing with illegal operators who have not applied to and received the SEC’s approval under the ARIP or the RI Program”

Mentioned in this article

The family of Tigran Gambaryan, the Binance executive detained in Nigeria, reports that his health has severely deteriorated, and he is being denied access to medical care.

In an Aug. 26 statement shared with CryptoSlate, his family expressed grave concerns about his health conditions and revealed that he is suffering from extreme pain due to a herniated disc, leaving him unable to walk.

The family stated:

“[Gambaryan] is now in so much pain from a herniated disc in his back that he can no longer walk. As he is bed-bound, he is having to take blood thinners to avoid blood clots and the prison doctor has said that his muscles have atrophied.”

His wife, Yuki Gambaryan, highlighted the inhumane conditions, stating that her husband is being denied the use of a wheelchair despite his worsening health.

She explained that Gambaryan is battling recurring bouts of malaria and pneumonia alongside the immense mental strain of his detention. She stressed that he needs urgent medical attention to prevent permanent damage.

Gambaryan has been held in Nigeria since Feb. 26. He is accused of money laundering, currency speculation, and tax evasion related to his work at Binance. Despite international calls for his release, he has now been in custody for six months.

Legal concerns

Meanwhile, the family alleges that the lack of a wheelchair has prevented Gambaryan from seeking support from the US embassy.

They further claim that Nigerian authorities barred his legal team from visiting him between July 26 and Aug. 14, which they argue violates the Nigerian constitution and prison regulations.

Though his legal team was later permitted a brief five-minute visit to prepare for trial, they were denied further access. This has hindered their ability to adequately prepare Gambaryan for his trial, which is set to begin on Sept. 2.

Gambaryan’s wife added:

“For 6 months, our living nightmare has been filled with pleas. Pleas to the US government, pleas to the Nigerian government, pleas to the media, pleas to anyone who will listen. I am pleading for their mercy, for their understanding, for their humanity. My husband is innocent and needs to be released before it is too late and the damage done to him is irreversible.”

Mentioned in this article

The Nigerian Federal Inland Revenue Service (FIRS) plans to introduce legislation to tax the growing crypto sector, according to local media outlet Business Day.

FIRS Executive Chairman Zacch Adedeji announced this during a session with the National Assembly’s Finance Committees, highlighting that the new regulation would drive economic growth while encouraging innovation.

Adedeji emphasized that this initiative aims to modernize Nigeria’s outdated regulatory framework by incorporating new technologies previously unaddressed by existing laws.

Dare Adekanmbi, Adedeji’s special adviser on media reportedly stated:

“We need a law that regulates that area of our economy. This is why we are having this engagement with the legislators. We will regulate it in a way that is not injurious to the economic development of Nigeria.”

Industry experts have been urging the Nigerian government to adopt this approach for a number of years. In 2021, when the government banned financial institutions from interacting with the crypto space, Tayo Oyedeji, a university professor, suggested that emerging economies should prioritize taxation over prohibition. He said:

“Nigeria (a big crypto market) can make millions from crypto gains tax.”

Nigeria is one of the largest crypto markets in Africa. The Nigerian SEC Director General Emomotimi Agama recently said the country’s digital assets market is estimated to be worth over $400 million.

The legislative move comes as some crypto platforms begin collecting Value-Added Tax (VAT) on transaction fees. In July, KuCoin announced it would start charging a 7.5% VAT on all transaction fees in Nigeria.

Nigeria crypto

Meanwhile, the push for crypto regulation in Nigeria has intensified recently. Finance Minister Wale Edun urged the Securities and Exchange Commission (SEC) to prioritize regulatory clarity for the industry.

This follows a recent crackdown on crypto platforms, prompting global players like OKX to exit the Nigerian market.

Additionally, Binance is facing legal action from Nigerian authorities for alleged money laundering and tax evasion. Tigran Gambaryan, a Binance executive, is currently detained at the Kuje Correctional Centre in Abuja despite growing international calls for his release due to his deteriorating health.

However, Nigerian authorities assert that these actions are part of a broader effort to ensure compliance in the emerging industry

Mentioned in this article

Nigerian Bitcoin advocate James Otudor has filed legal actions against the African country government’s restrictions on the ownership, use, and trade of Bitcoin, Tether (USDT), and other cryptocurrencies, according to an Aug. 9 statement.

Otudor stated:

“This legal action represents a peaceful protest for freedom and financial inclusion. As a nation founded on human rights, it is our responsibility to ensure that the rights of Bitcoin, USDT, and other digital asset users and holders are protected and guaranteed.”

This lawsuit arises amid Nigeria’s increasingly stringent crypto regulations. Major crypto trading platforms like OKX have exited the market, and the Nigerian naira has been removed from crypto exchanges operating within the country.

The lawsuit targets several high-profile government officials and regulatory bodies, including Nigeria’s president, the finance minister, the attorney general, the Central Bank of Nigeria (CBN), and the Nigerian Securities and Exchange Commission (SEC).

Additionally, the Economic and Financial Crimes Commission (EFCC), the Nigerian Police Force, the National Information Technology Development Agency (NITDA), and the Nigerian Communications Commission (NCC) were also tagged as defendants in the legal action.

The lawsuit

According to Otudor’s statement, the Nigerian government has violated citizens’ fundamental human rights by unfairly targeting individuals who wish to acquire, use, or trade digital assets.

Maurice Oru Ebam, the lawyer representing Otudor, stated:

“Section 43 of the [Nigerian] Constitution guarantees every Nigerian the right to acquire and own property anywhere in Nigeria. This right extends to digital assets, which have become essential for financial inclusion and economic stability.”

The lawsuit also contends that the government’s actions, such as forcing telecom companies to block access to crypto platforms, violate Article 14 of the African Charter on Human and Peoples’ Rights. This article guarantees property rights, which can only be restricted to public needs or community welfare.

Otudor emphasized the importance of Bitcoin and other digital assets in protecting savings from inflation and facilitating international transactions, especially given the naira’s devaluation and foreign exchange shortages.

Crypto regulation demands

Otudor wants the court to immediately end the blockage on all crypto exchange platforms, demanding unrestricted access for Nigerians.

He also called for a declaration that the infringement on the rights of Bitcoin, USDT, and other digital assets users in Nigeria was unlawful and unconstitutional.

Additionally, Otudor seeks the establishment of pro-crypto regulations that recognize Bitcoin and regulate the flagship digital asset as a commodity within Nigeria’s financial system.

Mentioned in this article

Crypto exchange OKX has informed Nigerian clients that they have until Aug. 16 to close their positions, as it is ceasing operations in the African country due to local regulations.

In a July 17 email statement obtained by CryptoSlate, OKX informed users they would no longer be able to open new positions or access any services on the platform, except for withdrawals and closing existing positions.

OKX assured users that their funds remain secure and accessible. However, they must withdraw these funds by Aug. 30, 2024. After this deadline, users will have to contact customer service for account-related actions.

The announcement has caused concern among Nigerian crypto users, who have voiced their frustrations on social media platform X. OKXHelpDesk responded by stating the platform cannot provide know-your-customer (KYC) services for Nigerian users.

It stated:

“Hi there, we are currently unable to offer KYC verification services for Nigeria. Any updates regarding licensing will be shared on our official channels. Please stay connected with us for any future announcements on this matter, thank you!”

The decision follows OKX’s removal of peer-to-peer services for Nigerian users and the removal of the local fiat currency, the Nigerian naira (NGN), from its platform in May.

OKX has yet to respond to CryptoSlate’s request for additional commentary as of press time.

Crypto exchanges challenges in Nigeria

OKX’s decision follows the recent crackdown on crypto platforms in Nigeria.

Earlier this month, KuCoin notified its Nigerian users of a 7.5% value-added tax (VAT) on all transactions. KuCoin cited a regulatory update in Nigeria as the reason for this change.

Furthermore, Binance faces legal action from Nigerian authorities for money laundering and tax evasion. One of the exchange executives, Tigran Gambaryan, is currently detained at the Kuje Correctional Centre in Abuja despite his worsening health conditions and increased international calls for his release.

Meanwhile, the Nigerian authorities maintain that these actions are part of a broader effort to ensure compliance in the emerging industry.

Mentioned in this article

US lawmakers French Hill and Chrissy Houlahan recently visited Tigran Gambaryan, a detained Binance executive, at Kuje Prison in Nigeria.

In a June 20 post on X, Hill described Gambaryan’s wrongful detention in a “horrible prison” where he is being denied medical care despite suffering from malaria, double pneumonia, and significant weight loss. He wrote:

“We found him suffering from the conditions [at the Kuje prison], as he has malaria and double pneumonia, and he reports that he has lost significant weight. Even worse, he’s being denied access to adequate medical attention.”

Hill emphasized the irony of Gambaryan’s detention on charges he has fought against, including money laundering and tax evasion. So, he called for Gambaryan’s immediate humanitarian release, stating:

“Tigran must be immediately granted a humanitarian release, the remaining charges dropped, and he must return home to America where he belongs.”

Gambaryan is a US citizen who heads the crypto exchange’s financial crime compliance department. He and Nadeem Anjarwalla, Binance’s regional manager for Africa, were apprehended upon their arrival in Nigeria’s capital, Abuja, on Feb. 26. Anjarwalla escaped custody on March 22.

This visit is part of growing efforts by US politicians and former federal agents to secure Gambaryan’s release. Recently, lawmakers, including Rep. Hill, and former federal agents sent letters to the State Department advocating his release.

In a press statement, Gambaryan’s wife, Yuki Gambaryan, also expressed confusion and frustration over his continued detention. She urged the US government to intensify its efforts to secure her husband’s release, stating:

“It is time for the Nigerian authorities to do the right thing and let my innocent husband go. Our tax dollars support Nigeria annually. As an ally, I refuse to believe that our State Department cannot do more to secure the release of an innocent American citizen.”

Money laundering charges

However, Gambaryan’s legal troubles in Nigeria continue to escalate as the Economic and Financial Crimes Commission (EFCC) resumed its money laundering case against Binance and Gambaryan on June 20.

During the session, the court permitted cross-examining witnesses, including Abdulkabir Abbas, a Director with Nigeria’s Securities and Exchange Commission (SEC). Abbas testified that Binance had failed to register with his office before commencing operations in the country. Last year, the Nigerian SEC declared Binance’s operations illegal and urged the public to avoid the platform.

This development follows a June 14 court ruling that cleared Gambaryan and Anjarwalla of tax evasion charges.

Mentioned in this article

Nigeria’s Federal Inland Revenue Service (FIRS) has dropped tax evasion charges against Binance executives Tigran Gambaryan and Nadeem Anjarwalla. Instead, the agency will focus solely on the exchange itself.

Alexander Onukwe, a Nigerian Journalist for Semafor, citing an e-mailed statement from Gambaryan’s representative, reported:

“FIRS to revise charges to serve solely on Binance through its local representative… [but] bogus EFCC charges against them remain.”

In March, the Nigerian tax regulator filed four counts of tax-related offenses against Binance and its executives. The charges included evading value-added tax (VAT) and company income tax, failing to file tax returns, and aiding customers in tax evasion.

Furthermore, Binance was accused of operating without registering with the FIRS, violating the country’s tax regulations.

Meanwhile, Gambaryan continues to face money laundering charges from Nigeria’s anti-corruption agency, the Economic and Financial Crimes Commission (EFCC). The case was postponed to June 20 in May after concerns emerged over his wellbeing at the Kuje prison where he is currently held.

Binance has yet to respond to CryptoSlate’s request for comment as of press time.

Pressure mounts on Nigeria

This development marks the latest chapter in Binance’s ongoing issues in Nigeria.

Over the past weeks, various groups, including US lawmakers and former federal prosecutors, have urged President Joe Biden to intervene in the continued detention of Gambaryan. According to them, the Binance executive is being wrongfully detained and was charged with several baseless crimes.

However, the Nigerian government continues to maintain that the defendants, both Gambaryan and Binance, will have the opportunity to defend themselves against the charges in court.

Gambaryan is a US citizen who heads the crypto exchange’s financial crime compliance department. He and Nadeem Anjarwalla, Binance’s regional manager for Africa, were apprehended upon their arrival in Nigeria’s capital, Abuja, on Feb. 26. Anjarwalla escaped custody on March 22.

Mentioned in this article

A group of more than 100 former US federal prosecutors has urged the United States government to intensify efforts to secure the release of Binance executive Tigran Gambaryan from Nigerian custody, according to a June 6 letter.

Gambaryan, Binance’s head of compliance, and his colleague Nadeem Anjarwalla were detained in Nigeria in February following a contentious meeting with the African country’s government. While Anjarwalla managed to escape in March, Gambaryan remains imprisoned.

In the letter addressed to Secretary of State Antony Blinken, the former prosecutors criticized the US government’s lack of action, warning of potentially dire consequences. They wrote:

“Tigran is now being held on false charges related to money laundering and tax evasion. He is completely innocent of these charges and, as a mid-tier employee at Binance, does not hold a role that makes him an appropriate stand-in for the company.”

‘Unjust and inhumane’

The group highlighted Gambaryan’s extensive service in law enforcement, where he handled significant cases involving national security, terrorism financing, and identity theft.

They assert his innocence and argue that his detention is an attempt to pressure Binance into settlements with the Nigerian government, adding that his continued imprisonment was unjust and inhumane.

They stated:

“[Gambaryan] is currently held at Kuje Prison, which has housed some of Nigeria’s worst criminals, including Boko Haram members. His rights to legal counsel and family contact have been severely restricted.”

Increased calls for diplomatic action

Notably, this appeal coincides with increasing calls for diplomatic action on the case between the Nigerian government and Gambaryan.

Earlier in the week, several US lawmakers urged President Joe Biden to intervene in the matter because Gambaryan was being wrongfully detained and was charged with several baseless crimes.

However, the Nigerian government has publicly maintained its adherence to due process in the ongoing legal proceedings against Binance and Gambaryan. According to the authorities, the accused will have the opportunity to defend themselves against the charges in court—the next hearing on the case is scheduled for June 20.

Mentioned in this article

A Nigerian High Court has denied bail to Binance executive Tigran Gambaryan, citing concerns that he might flee the country.

Gambaryan, who turned 40 today, has been held by the Nigerian government since February. Speaking on his detainment, Noah Perlman, Binance’s chief compliance officer, said:

“On this very unhappy birthday, a reminder that Tigran Gambaryan has been dedicated to public service and fighting crime for most of his life. These charges against him are completely meritless. He should be freed while discussions continue between Binance and Nigerian government officials.”

Bail denied

The lawyer for the prosecutors, Ekele Iheanacho, firmly opposed Gambaryan’s bail application. He pointed out that the Binance executive recently attempted to obtain a new passport under dubious circumstances, alleging his previous one was stolen.

Iheanacho also argued that Gambaryan has no substantial ties to any community in Nigeria. He further warned that granting bail could lead to Gambaryan absconding.

The judge concurred with the prosecution, emphasizing that the nature and severity of the offense must be considered when deciding on bail.

Reputation damage?

Meanwhile, the ongoing prosecution of Binance and its executives in Nigeria could significantly impact the growth of the emerging crypto industry, experts warn.

Adebayo Juwon, co-founder of Finna Protocol, told CryptoSlate that this situation might discourage Web3 companies from entering Nigeria, perceiving it as hostile to new technologies. Juwon explained:

“Web3 is still at its infancy with a lot of potential to better any country’s economy, investors are watching, other web3 startups are observing what the government will make of this Binance saga. I must say, the future of web3 in Nigeria is being challenged as the country is now seen as un friendly for emerging technologies.”

Conversely, Oladotun Wilfred, CMO of Flincap, remains optimistic. He believes that any reputational damage can be repaired and that the conflict will not hinder crypto adoption in Nigeria. Wilfred stated:

“The country might not get a positive image from the international crypto market from these events. However, it is not the worst thing that could happen. The country has bounced back from even worse situations. We can turn it around by projecting the fact that we are one of the biggest users of cryptocurrency and adopters of blockchain across the globe. It is normal to have a few controversies in a place where there is so much massive growth.”

Mentioned in this article

Binance CEO Richard Teng has called for the release of Tigran Gambaryan, the exchange’s detained executive in Nigeria.

In an extensive May 7 blog post, Teng said Gambaryan’s detention was unjust and set a dangerous precedent. He said:

“To invite a company’s mid-level employees for collaborative policy meetings, only to detain them, has set a dangerous new precedent for all companies worldwide.”

Gambaryan is a US citizen who heads the crypto exchange’s financial crime compliance department. He and Nadeem Anjarwalla, Binance’s regional manager for Africa, were apprehended upon their arrival in Nigeria’s capital, Abuja, on Feb. 26. Anjarwalla escaped custody on March 22.

Teng pointed out that Gambaryan “did not go to Nigeria as a ‘decision-maker,’ nor a ‘negotiator.’ He was merely acting as a functional expert in financial crime and capacity building in policy discussions.”

He accused Nigeria of detaining the Binance employee as a part of efforts to exert control over the exchange.

According to Teng:

“The message from the Nigerian government is clear: we must detain an innocent, mid-level employee and a former US federal agent, and place him in a dangerous prison in order to control Binance.”

He concluded that Nigeria should “let Tigran go home to his family, and then Binance will work through the same process that we have done with Nigeria’s law enforcement community voluntarily more than 600 times in the past.”

Binance makes bribe allegations against Nigeria

In his blog post, Teng revealed that the exchange received requests from “unknown persons,” purporting to be representatives of Nigeria’s House Committee on Financial Crimes (HCFC), demanding a “significant payment in crypto to be paid in secret.”

Teng refrained from revealing further details regarding the amount requested.

The New York Times reported that an individual associated with the Nigerian government approached Gambaryan and asked for a bribe amounting to approximately $150 million in crypto.

However, Teng said the exchange declined the “payment demand” because it did not “view it to be a legitimate settlement offer.”

Mentioned in this article