Binance CEO Alleges Secret Settlement Demand from Nigerian Authorities Led to Detention of Binance Executive in January
Julia Smith
Last updated: May 7, 2024, 11:22 EDT | 2 min read
Binance CEO Richard Teng revealed in a blog post on Tuesday that the now detained Binance executive, Tigran Gambaryan, and representatives of the crypto exchange were allegedly pressured by a government official to accept a secret agreement to settle Nigeria’s claims against the exchange.
According to Teng, Gambaryan and several Binance employees attended a meeting with members of Nigeria’s House Committee on Financial Crimes (HCFC) to discuss “the nature of the issues at hand” before a pre-investigative hearing involving the crypto exchange.
Richard Teng Claims Nigerian Officials Offered Secret Settlement Deal
During the meeting, HCFC officials allegedly warned the Binance employees that they were prepared to issue arrest warrants against them and prevent them from leaving the country.
As the Binance employees left the meeting, they were allegedly approached by unknown individuals who promised to resolve the issues if they accepted a secret settlement.
According to a report by The New York Times on Tuesday, this “settlement” was actually a $150 million bribe from someone within the Nigerian government.
Teng wrote, “Counsel reported back that he had been presented with a demand for a significant payment in cryptocurrency to be paid in secret within 48 hours to resolve these issues, and that our decision was expected by the morning. Our team became increasingly concerned about their safety in Nigeria and immediately left.”
Gambaryan and fellow Binance executive Nadeem Anjarwalla returned to Nigeria the following month for a meeting with the CEO of the Nigerian SEC, the country’s national security adviser, and the central bank’s deputy governor.
“Tigran Gambaryan and Nadeem Anjarwalla (Head of Binance Africa) received multiple assurances that they would be granted safe passage for their meetings, despite the clear risks,” Teng said.
It was after this meeting that the two executives were detained, with Anjarwalla reportedly fleeing and then being recaptured in Kenya just weeks ago.
Fate of Detained Nigerian Binance Executives Remains Uncertain
The revelation of the bribe comes as Nigeria announced plans to delist the naira from peer-to-peer (P2P) platforms to prevent manipulation. These changes will be implemented in the coming days.
The country’s government previously accused the cryptocurrency sector of devaluing the nation’s currency, with inflation reaching a nearly 30-year high of 33.20% in March.
Meanwhile, both Gambaryan and Anjarwalla have been charged with money laundering and tax evasion.
The two Binance executives are scheduled to appear in court for a hearing on May 17.