Key Takeaways:
- Two senior Binance executives are detained in Nigeria, with their custody extended until a March 20 hearing, amidst allegations against Binance of negatively impacting Nigeria’s currency.
- The executives, American Tigran Gambaryan and British-Kenyan Nadeem Anjarwalla, have not been formally charged but are being held as part of a national security investigation.
- Binance is actively cooperating with Nigerian authorities, aiming for the safe return of the detained executives to their families, against the backdrop of Nigeria’s efforts to address a foreign exchange crisis.
Two high-ranking officials from Binance, the global cryptocurrency exchange, find themselves in ongoing detention in Nigeria, with their custody extended until at least a legal hearing scheduled for March 20.
This development follows a report by the Wall Street Journal on Wednesday.
The individuals in question, American Tigran Gambaryan, who oversees financial crime compliance at Binance, and Nadeem Anjarwalla, a British-Kenyan serving as the exchange’s regional manager for Africa, were detained on February 26.
Their arrest came as they arrived in Abuja, Nigeria’s capital, responding to an invitation from the Nigerian government for discussions.
Despite not facing any formal charges to date, the Nigerian government has leveled serious accusations against their employer, Binance. The government alleges that the cryptocurrency exchange played a significant role in the devaluation of the Nigerian currency, the naira.
Following their detention, a Nigerian court, on February 28, sanctioned a two-week custody for the duo, aiming to facilitate a thorough investigation into the allegations. This decision came shortly after their initial detention in a secured residence.
A representative from the office of Nigeria’s National Security Adviser, while discussing the matter with Bloomberg, clarified that the executives’ detainment should not be interpreted strictly as an arrest. Instead, it was described as a matter of national security concern for Nigeria.
During a subsequent court session held on Wednesday, the judiciary did not extend the detention term but announced a forthcoming hearing on March 20. This interim period is intended to allow Nigerian officials additional time to prepare their response to the defense presented by the lawyers of the Binance executives.
The situation draws attention to broader economic challenges faced by Nigeria, particularly in managing foreign exchange and controlling capital flight.
Olayemi Cardoso, the governor of Nigeria’s Central Bank, highlighted the severity of the issue by revealing that in the previous year, Binance’s Nigerian operations saw a staggering $26 billion in untraceable transactions, exacerbating the country’s foreign exchange crisis.
In response to these developments, Binance has communicated its commitment to cooperating with Nigerian authorities to ensure the safe return of Gambaryan and Anjarwalla to their families.
The exchange reiterated this stance in a recent tweet, emphasizing its efforts to secure the release of their colleagues.
In light of recent events, we would like to showcase our dedication to promoting the responsible growth of crypto in Nigeria with some facts and numbers.
— Binance (@binance) March 13, 2024
We will continue to work with Nigerian authorities to bring our friends and colleagues home.
They are professionals with the… pic.twitter.com/qSNNfxJIVx
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