For the past two weeks, Nigerian authorities have detained two senior executives from cryptocurrency exchange Binance, Tigran Gambaryan and Nadeem Anjarwalla, in Abuja, the capital city. Stripped of their passports, the executives have been confined to government property, following an initial meeting aimed at addressing the ongoing dispute between Binance and the Nigerian government. The government’s move to block access to Binance and other cryptocurrency exchanges due to concerns about currency devaluation and alleged facilitation of illicit funds sparked the ordeal.
The families of Gambaryan and Anjarwalla express deep concern over the lack of information and uncertainty surrounding the situation. Despite visits from officials from the US State Department and the UK foreign office, the executives have been unable to communicate privately due to the presence of Nigerian government guards. Anjarwalla’s brief transfer to a local hospital for illness, possibly malaria-related, underscores the tense situation.
Binance, when approached for comment, declined to provide specifics regarding the accusations or demands made by Nigerian authorities. However, a spokesperson stated that the company is actively collaborating with Nigerian authorities to ensure the safe return of the executives, emphasizing their professionalism and integrity.
The detention of Gambaryan, known for his past as a US federal agent specializing in cryptocurrency-related investigations, adds an ironic twist. His recruitment by Binance aimed to enhance compliance with regulations and foster closer cooperation with law enforcement. Prior to joining Binance, Gambaryan was involved in significant cases such as the Silk Road dark-web drug market investigation and the Welcome to Video crypto-based child sexual abuse materials network takedown.
In response to regulatory scrutiny, Binance recently discontinued all services involving the Nigerian naira (NGN) and announced the suspension of NGN withdrawals after March 8. The Nigerian government’s imposition of a hefty $10 billion fine on Binance as part of its crackdown underscores the severity of the situation as the platform navigates challenges in stabilizing the nation’s local currency.
