Richard Teng, the CEO of Binance, has stated that Nigeria is not a significant market for the company. His remarks come in light of the ongoing situation involving Tigran Gambaryan, a former U.S. federal agent who has been held in Nigeria for six months under harsh conditions.
Gambaryan’s health has reportedly worsened significantly, with severe physical and mental distress. Despite his deteriorating condition, Nigerian authorities have denied him necessary medical care and legal representation, which contravenes constitutional rights. Moreover, Gambaryan has been deprived of U.S. consular support.
The Nigerian government has cited dubious claims linking Binance to the country’s economic troubles, including the decline of the Naira. However, these claims lack factual support, according to Richard Teng.
Binance is now calling for intervention from the U.S. government and global organizations. The company urges international pressure to secure Gambaryan’s release on humanitarian grounds and to condemn Nigeria’s unjust detention practices.
The Nigerian prosecution has argued that Gambaryan’s detention is justified due to Binance’s virtual operations, labeling him a flight risk and opposing bail. This reasoning is disputed by Binance, which emphasizes that holding an innocent employee accountable for allegations against Binance is unwarranted.
Teng stated that the company has successfully resolved issues with governments worldwide, including the U.S., Thailand, Brazil, and India, without resorting to harmful practices. Additionally, the Nigerian government’s assertion that Binance is responsible for the Naira’s decline is unsubstantiated. Between 2021 and late 2022, the Naira’s exchange rate was relatively stable.
He argued that the most significant depreciation occurred after the Nigerian government ended the currency peg in June 2023, leading to a sharp decline in the Naira’s value. This trend persisted even after Binance ceased its P2P services in Nigeria in February 2024. Economists attribute currency movements to broader macroeconomic factors rather than specific entities.
Although the government claims otherwise, Binance’s financial involvement in Nigeria is not as significant as portrayed. The $26 billion mentioned by Nigerian authorities represents the total transaction volume, not revenue. The actual revenue Binance generates from transaction fees is much lower, given the company’s globally competitive low fees, Teng clarified.
Nigerian authorities have withdrawn tax evasion allegations against Binance executives Tigran Gambaryan and Najeem Anjarwalla, who were apprehended some months back, although the money laundering case with the EFCC is still active.
Initially, the Federal Inland Revenue Service (FIRS) had charged Gambaryan and fellow executive Najeem Anjarwalla with tax evasion. While Anjarwalla managed to flee to Kenya, Gambaryan remained in detention.
The case dismissal occurred just a week after sixteen U.S. lawmakers accused Nigeria of effectively holding Gambaryan hostage. The lawmakers issued a statement on June 4, calling the accusations “baseless” and suggesting they were simply a coercive effort by the Nigerian government to extract money from Binance.
In a letter directed to the President of the United States by U.S. lawmakers, they was claimed that Gambaryan was “wrongfully detained by a foreign government.” Following this correspondence, the FIRS has agreed to amend the allegations, targeting only Binance, through its regional representatives, in the proceedings.
As a result, Gambaryan is relieved from court appearances, with Binance becoming the sole party responsible in court. Although the tax evasion charges have been lifted, Gambaryan remains in the custody of Nigeria’s Economic and Financial Crimes Commission (EFCC) due to a separate money laundering accusation. Reports suggest that Gambaryan is having health issues.
