Richard Teng, the Chief Executive Officer of Binance, the world’s largest digital asset exchange platform, has launched a scathing critique against Nigerian authorities over the prolonged detention of two of its top executives.
The detention, according to Teng, not only poses a grave
threat to Binance’s operations but also establishes a chilling precedent for
companies worldwide.
In an exclusive interview with Reuters on Tuesday, Teng
pulled no punches as he condemned the ongoing confinement of Tigran Gambaryan,
Binance’s head of financial crime compliance, and his colleague Nadeem
Anjarwalla. Both executives have found themselves trapped in a legal tussle in
Nigeria, facing charges of tax evasion and money laundering – allegations
vehemently disputed by the company.
“To invite a company’s mid-level employees for collaborative
policy meetings, only to detain them, has set a dangerous new precedent for all
companies worldwide,” Teng said.
Teng provided a detailed account of the events leading up to
the executives’ detention, shedding light on the company’s efforts to engage
constructively with Nigerian authorities. Meetings held as early as January
2024 aimed at fostering collaboration were abruptly disrupted when Nigerian
officials demanded the delisting of the country’s currency, the naira, from
Binance’s platform, alongside intrusive demands for user data.
The CEO expressed profound dismay over the protracted
detention of Gambaryan, lamenting what he termed as “dubious grounds” for his
continued confinement. Despite diplomatic overtures and assurances of
cooperation, Nigerian authorities have yet to relent, leaving Binance in a
state of limbo.
However, the plot thickened with Teng’s revelation in a
recent blog post, wherein he disclosed attempts at bribery directed at Binance
executives before their detention. The CEO recounted a brazen encounter
following a meeting with Nigerian officials on January 8, during which
unidentified individuals purportedly offered to absolve the company of
allegations in exchange for a substantial sum in cryptocurrency – a proposition
summarily rejected by Binance.
“As our employees were leaving the venue, they were
approached by unknown persons who suggested to them to make a payment in
settlement of the allegations.
“Later that day, our local counsel — representing us at that
time — was summoned by the committee through someone purporting to be their
agent, who relayed the committee’s terms and instructed our local counsel to
advise us.
“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 make these issues go away and that our decision was expected by the
morning.
“Our team grew increasingly concerned about their safety in
Nigeria and immediately departed. We, of course, declined the payment demand
via our counsel, not viewing it to be a legitimate settlement offer,” Teng
said.
Binance’s ordeal is part of a broader crackdown on the
crypto industry by the Nigerian government.
Backstory
The unfolding drama surrounding the detention of two senior
Binance executives, Nadeem Anjarwalla and Tigran Gambaryan, by Nigerian
officials, has thrust the global cryptocurrency community into a whirlwind of
speculation and intrigue. What began as a routine visit to Nigeria in February,
in response to the country’s heightened scrutiny of cryptocurrency trading
platforms escalated into a complex legal battle fraught with diplomatic
tensions and allegations of impropriety.
In response to the detention, Binance took decisive action,
discontinuing the trading of the Nigerian naira against popular
cryptocurrencies like bitcoin and tether on its platform.
However, the plot thickened with the revelation on March 24
that Anjarwalla had managed to escape from lawful custody, throwing Nigerian
authorities into disarray. The British-Kenyan executive, reportedly utilizing a
Middle East airliner, fled Abuja despite his British passport remaining in
Nigerian custody. The audacious escape prompted swift condemnation from the
Nigerian government, which vowed to pursue international avenues, including
cooperation with Interpol, to secure Anjarwalla’s extradition.
Amidst the escalating tensions, the Federal Inland Revenue
Service (FIRS) in Abuja escalated the legal battle by filing proceedings
against Binance, alleging four instances of tax evasion. The FIRS accused the
cryptocurrency exchange of failing to remit Value Added Tax (VAT) and Company
Income Tax (CIT), neglecting tax return filing obligations, and facilitating
tax evasion among its users. The lawsuit also highlighted Binance’s purported
failure to register for tax purposes and its alleged violations of Nigerian tax
laws.
The gravIty of the situation became further apparent as the
Federal High Court adjourned the case against Binance and its executives to May
17. The charges, ranging from money laundering to tax evasion, underscored the
multifaceted legal challenges confronting Binance in Nigeria. Allegations of
manipulation of the local currency by peer-to-peer traders on the platform only
added to the complexity of the case.
Throughout the legal proceedings, Binance and its team of
executives have maintained their innocence, vehemently denying any wrongdoing.
With both sides digging in their heels, the stage is set for a protracted legal
battle that could have far-reaching implications for the Nigerian
cryptocurrency industry.
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