In a recent development, the Federal Government of Nigeria has firmly dismissed allegations of bribery and misconduct made by Tigran Gambaryan, a high-ranking executive at cryptocurrency exchange Binance. Gambaryan, who was detained in Nigeria for eight months on charges including money laundering and tax evasion, has accused Nigerian officials of corruption and demanded his unlawful detention.
The government’s response comes after Gambaryan’s release in October 2024, which followed significant diplomatic interventions from the United States. In a statement released on February 14, 2025, Mohammed Idris, the Honourable Minister of Information and National Orientation, categorically denied the allegations, urging the public to disregard what he termed as “falsehoods” propagated by Gambaryan.
Background of the Allegations
Tigran Gambaryan, an American citizen and former special agent with the Internal Revenue Service Criminal Investigation (IRS-CI), joined Binance in 2021 as the head of financial crime compliance. In February 2024, he traveled to Nigeria alongside colleague Nadeem Anjarwalla, reportedly at the invitation of Nigerian officials to address concerns regarding Binance’s operations in the country. However, the visit took an unexpected turn when both executives were arrested on charges of laundering over $35 million and operating without proper licensing. While Anjarwalla managed to escape custody in March 2024, Gambaryan remained detained, facing severe health issues during his imprisonment. His release in October 2024 was facilitated on humanitarian grounds after extensive diplomatic efforts by the U.S. government.
Government’s Rebuttal
Addressing the allegations, Minister Mohammed Idris emphasized that the Federal Government had no official involvement in Gambaryan’s initial visit to Nigeria. He stated that upon learning of an alleged bribery demand during that trip, an investigation was promptly initiated, despite the absence of a formal complaint. Regarding Gambaryan’s second visit, Idris clarified that it was part of a broader investigation into the manipulation of the Nigerian currency through peer-to-peer platforms like Binance. He noted that the investigation faced challenges due to the tactics employed by Gambaryan and his team.
Idris also refuted claims that the government accepted a $5 million bribe from Binance in exchange for Gambaryan’s release. He asserted that the government rejected such an offer, opting instead for a more beneficial settlement facilitated through diplomatic channels with the American government. “We categorically deny the retaliatory claims made by Mr. Gambaryan against Nigerian officials involved in his case,” Idris stated, urging the public to dismiss these unfounded accusations.
Diplomatic Interventions and Health Concerns
Gambaryan’s detention drew significant international attention, particularly from U.S. lawmakers and human rights advocates. Reports highlighted his deteriorating health condition, including severe cases of malaria, pneumonia, and a herniated disc, which were exacerbated by the conditions in Kuje Prison. Despite multiple bail applications citing health grounds, Nigerian courts initially denied his release, considering him a potential flight risk. The situation escalated to the point where 16 members of the U.S. Congress signed a letter to the White House, urging for his case to be treated as a hostage situation. These concerted efforts culminated in his release in late October 2024.
Ongoing Investigations and Future Implications
While the charges against Gambaryan have been dropped, the Nigerian government’s scrutiny of Binance’s operations continues. The Economic and Financial Crimes Commission (EFCC) maintains allegations against the cryptocurrency exchange, focusing on issues such as tax evasion and operating without proper licensing within Nigeria. This ongoing investigation underscores the government’s commitment to regulating the burgeoning cryptocurrency market and ensuring compliance with national financial laws.
The clash between Nigerian authorities and Binance highlights the complex intersection of emerging financial technologies and regulatory frameworks in developing economies. As Nigeria grapples with the challenges posed by digital currencies, the outcome of this high-profile case may set significant precedents for how such matters are handled in the future.
