US lawmakers have accused Nigeria of holding a Binance executive hostage. Bloomberg reported that lawmakers called on President Joe Biden to intervene and secure the executive's release.
In a recent letter, sixteen Republican members of Congress, led by Michael McCaul, Chairman of the House Foreign Affairs Committee, urged President Biden to address the detention of Tigran Gambaryan, a US citizen and head of financial crimes compliance at Binance. Gambarian has been held in a Nigerian prison since April, after being detained during a trip to discuss Binance compliance issues with Nigerian authorities.
Lawmakers' allegations and Nigerian response
Members of Congress described the charges against the detained executive as baseless and a coercion tactic by the Nigerian government to blackmail Binance. They say Gambarian's arrest qualifies him as a US citizen wrongfully detained by a foreign government.
Nigeria's Information Minister, Mohamed Idris, refuted the allegations, saying Gambaryan's detention was in accordance with Nigerian law. Idris confirmed that the charges against Gambarian include failure to pay taxes and assisting in tax evasion through the Binance platform.
The confrontation began in February when Gambarian and a colleague were arrested during a visit to Nigeria. The meetings, initially professional, became hostile, culminating in Gambarian's arrest. While his colleague managed to escape, Gambarian was detained in a guest house before formal charges were brought against him in April.
Gambaryan faces charges alongside Binance for allegedly helping clients evade taxes and failing to pay value-added taxes and corporate income taxes. He is currently detained at Kuje Correctional Centre, a maximum security prison in Abuja. Concerns were raised about his health after his court appearance was postponed due to illness.
Wider implications and legal issues at Binance
Gambarian's detention comes amid broader tensions between Binance and Nigerian authorities. The country had previously blocked access to cryptocurrency channels, blaming them for exacerbating the decline in the value of the naira.
Binance's challenges extend beyond Nigeria. In the United States, the company's founder, Changpeng Zhao, was sentenced to four months in prison for non-compliance. Additionally, Binance agreed to a $4.3 billion settlement in November to resolve US allegations of facilitating cybercrime and terrorism.
Last month, a Nigerian court issued a ruling paving the way for Binance CEO Tigran Gambaryan to go to trial on behalf of the cryptocurrency exchange in an ongoing tax evasion case. Gambarian and Regional Director for Africa Nadeem Angarwala are facing four counts of tax evasion. In addition, they were accused of laundering more than $35 million and engaging in specialized financial activities without a license.
This article was written by Jared Kirroy at www.financemagnates.com.
