Nigeria Releases American Crypto Executive After Dropping Money Laundering Case

An American cryptocurrency executive, Tigran Gambaryan, has been released from Nigerian custody after authorities dropped a money laundering case against him. The decision was made on humanitarian grounds, allowing Gambaryan to return to the U.S. for medical treatment. This development marks a significant turn in a case that has drawn international attention and raised questions about Nigeria's regulatory environment for cryptocurrency.

Key Takeaways

• Tigran Gambaryan, head of financial crime compliance at Binance, was held in Nigeria for eight months.
• The Nigerian government dropped the case citing health and diplomatic reasons.
• Gambaryan's colleague, Nadeem Anjarwalla, remains at large after fleeing custody.
• Binance faces ongoing charges related to tax evasion and operating without a license.

Background of the Case

Gambaryan was arrested in February during a business trip to Nigeria, alongside Anjarwalla. The Nigerian authorities accused them of using Binance to launder up to $35 million and manipulate the local naira currency. Both men denied these allegations, which were made amid Nigeria's struggle to stabilize its economy and currency.

Nigeria has emerged as Africa’s largest crypto economy, with many citizens turning to cryptocurrency as a hedge against inflation and currency devaluation. However, the government has expressed concerns about the potential for money laundering and terrorism financing through crypto platforms, leading to increased scrutiny and regulatory actions.

Diplomatic Efforts and Release

The release of Gambaryan was announced by White House national security adviser Jake Sullivan, who expressed gratitude to Nigerian officials for their cooperation. Sullivan emphasized the importance of the bilateral relationship between the U.S. and Nigeria, highlighting ongoing discussions on various areas of collaboration.

Gambaryan's health had reportedly deteriorated during his detention, prompting the Nigerian government to reconsider the case. On Wednesday, R.U. Adaba, a lawyer with Nigeria’s Economic and Financial Crimes Commission, informed the Federal High Court in Abuja that the government was ending the trial due to "critical international and diplomatic reasons."

Controversies Surrounding the Case

The trial has been marred by allegations of illegal detention and bribery. Binance claimed that Nigerian officials demanded bribes for the release of Gambaryan and Anjarwalla, a claim that the Nigerian government has denied. The prosecution has maintained that the case was conducted in accordance with the rule of law.

Despite the dropping of the money laundering charges, Binance still faces serious legal challenges in Nigeria, including accusations of tax evasion and operating without the necessary licenses. The company has been under scrutiny as the Nigerian government seeks to regulate the rapidly growing cryptocurrency market.

Conclusion

The release of Tigran Gambaryan marks a pivotal moment in the ongoing dialogue between cryptocurrency platforms and regulatory authorities in Nigeria. As the country grapples with the complexities of cryptocurrency regulation, the case highlights the need for clearer guidelines and cooperation between governments and the crypto industry. The future of Binance in Nigeria remains uncertain as it continues to face legal challenges, but the resolution of Gambaryan's case may pave the way for more constructive discussions moving forward.

Sources

• Nigeria releases American crypto executive after dropping money laundering case, Yahoo Finance.ca.