Nigerian authorities have proposed a secret crypto settlement, Binance CEO says.
Nigerian authorities In early 2024, new details emerged suggesting that Nigerian officials tried to coerce representatives of Binance, which was paid in secret, during meetings.
Binance CEO Richard Teng released a report detailing Tigray Gambarian's subsequent arrest on May 7. Gambarian is a former United States Internal Revenue Service agent who heads Binance's financial crime compliance team.
After arresting two of its employees, Teng condemned the Nigerian government, saying the country had “set a dangerous new precedent for all companies around the world”.
Related: Arrested Binance exec admits he's not a criminal in Nigeria
Gambarian, who is a key figure in the fight against international financial crimes, was arrested while on a business trip to Nigeria. Teng outlined the exchange's efforts to engage constructively with Nigerian authorities, participate in regulatory discussions and cooperate with law enforcement agencies.
Question of public hearing
According to Teng, Binance employees have begun discussions with Nigerian authorities through public investigative hearings at the request of the Chairman of the House of Representatives Committee on Financial Crimes (HCFC).
The committee is reported to have issued an arrest warrant against the exchange's team and CEO and barred the delegation from leaving the country, stating how often they were prepared to summon Binance over issues related to Binance's operations in Nigeria.
A public hearing has been scheduled for January 10, and Binance is expected to publicly respond to any allegations in the presence of petitioners, the press and more than 30 agencies.
Teng said Binance had not received details of the lawsuit, and the delegation attempted to submit written responses without a public hearing. The committee chairman said he would review the request and respond to Binance's legal counsel.
Secret crypto settlement
The CEO of Binance has suggested that unknown people approach the exchange's staff and make a payment to settle the lawsuit. Teng, Binance's local advisor, was quoted as saying by an agent representing the HCFC Committee:
“He has been asked to pay a significant amount in cryptocurrency to be paid confidentially within 48 hours to get these issues resolved and our decision is expected in the morning,” the consultant reported.
The exchange denied the payment request through local legal representation and continued to engage in settlement negotiations. As Binance prepares to resume discussions with Nigerian authorities, it has fielded a number of questions following the incident.
Further meetings were planned for the end of February, with several government representatives from the Office of the National Security Adviser, the Office of the President, the Central Bank of Nigeria, the Financial Intelligence Unit of Nigeria, the Economic and Financial Crimes Commission and the Nigerian SEC.
Related: Binance and Arrested US Exec Face More Charges in Nigeria
“Despite the obvious concerns, Tigran Gambaryan and Nadeem Anjarwalla (Head of Binance Africa) have received many assurances that they will be given safe passage for their meetings,” said Teng.
Binance shuts down Nigerian services
The situation worsened when the Nigerian authorities demanded measures from Binance, including the removal of the naira from the platform and the arrest of Gambia and Anjarwala for providing the user's details.
Despite assurances of safety, the pair were held against their will, and their passports and mobile phones were confiscated, Binance asserted. As Gambarian remains in custody, the Nigerian government is insisting that his release depends on Binance complying with its demands.
Binance responded by shutting down some services in Nigeria, hoping to resolve the situation and release Gambia.
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