The Nigerian government recently obtained a court warrant to detain Binance officials for at least twelve days after they insisted they should be taken to their respective countries’ embassies, according to local media outlet Premium Times. The government accused Binance of exacerbating the country’s foreign exchange challenges by manipulating rates for profit, leading to restrictions on access to Binance’s official website and the apprehension of two top executives.
Reports have identified the detained executives as Tigran Gambaryan, a former special agent of the US Internal Revenue Service (IRS) and head of financial crime compliance at Binance, and Nadeem Anjarwalla, the regional manager for Binance Kenya. They have been held in Abuja, Nigeria’s capital, for two weeks without access to their passports. The officials had traveled to Nigeria at the government’s invitation to address the issues surrounding Binance’s operations in the country.
Instead of engaging in constructive dialogue as planned, Gambaryan and Anjarwalla were reportedly escorted from their hotels, told to pack their belongings, and relocated to a guesthouse managed by Nigeria’s National Security Agency. The situation highlights the precarious position of foreign executives working in Nigeria and the potentially severe consequences of government scrutiny.
Binance has stated that it is working collaboratively with Nigerian officials to secure the release of its detained executives, emphasizing their professionalism and integrity. In a statement to CryptoSlate on Mar. 12, Binance expressed their commitment to providing support to the executives during this challenging time.
The recent detention of Binance executives by the Nigerian government underscores the complexities of operating in foreign markets, particularly in regions where regulations and enforcement practices may differ significantly from Western standards. The incident serves as a cautionary tale for multinational companies expanding into emerging markets and highlights the importance of thorough risk assessment and compliance protocols. It also raises questions about the motives behind the government’s actions and the potential implications for foreign investment in Nigeria.