The Year in Crypto: Binance’s Nigerian Hostage Crisis

One of the most interesting crypto reports from the year was that of previous IRS representative and Binance professional Tigran Gambaryan, who was detained for eight weeks in Nigeria on suspicion of money fraud.

Taking in brave escapes, court falls, and Congressional commitments, the unfolding story was equivalent to a Hollywood movie—but with quite real implications for those involved. Here’s how the tale unfolded.

Gambaryan, a U. S. member, joined Binance as the crypto currency’s VP of Global Intelligence and Investigations in September 2021. He gained a wealth of knowledge from his generation as a special agent for the IRS Cyber Crimes Unit, where he had conducted investigations into cases involving child sexual abuse, violence financing, and CSAM, as well as participating in some of the biggest crypto-related investigations to date, such as the Silk Road corruption investigations and the Mt. Gox steal.

Gambaryan stated at the time that Binance do “work strongly with our colleagues in conformity to identify criminals and recommend them for trial.” Little could he have imagined that he himself would be in prison a few years later and facing charges including money deception and facilitation of transfers of illegal money.

In February 2024, Gambaryan and his partner Nadeem Anjarwalla, Binance’s local head for Africa, arrived in Nigeria to join with government officials.

The government’s government, facing a currency issue, had turned its outrage on bitcoins, blaming crypto trading systems for money manipulation.

Nigeria demanded that Binance provide it with information on the country’s top 100 customers as well as their exchange story as part of an ongoing investigation into bitcoin markets.

The Binance professionals were informed that the walk was a difficult one. Prior to weeek, Gambaryan and his colleagues had left the country without warning because they worried that a local official might detain them if they were told to” settle” alleged tax violations or that they” could not leave Nigeria.”

This day, Gambaryan assured his wife Yuki, he had “get in and get out”.

“You’re our host then”

But on this situation, his earlier fears were realized. On February 28, Gambaryan and Anjarwalla were detained on the purchases of Nigeria’s anti-corruption company, the EFCC. Gambaryan and Anjarwalla were held for 14 days under a jury attempt, which was later extended, despite originally not being charged.

A Nigerian national reportedly told the pair, “You’re our host then,” before they were detained in a safe substances under armed guard.

While the professionals ‘ documents were confiscated, they were allowed to keep their devices.

A fortnight later, in a remarkable development, Anjarwalla, a European Kenyan, escaped prison during a visit to a local dome, fleeing the country using a concealed Kenyan passport—having just handed his English card to authorities.

Following Anjarwalla’s escape, things went from bad to worse for his detained colleague. On the day Anjarwalla fled Nigeria, the country’s tax agency, the Federal Inland Revenue Service, charged Binance, Gambaryan, and Anjarwalla with tax evasion. Days later, the exchange, along with Gambaryan and Anjarwalla, were hit with charges of money laundering to the tune of$ 35 million by the EFCC—which suggested that Gambaryan could face charges on the exchange’s behalf.

“Blackmail”

Gambaryan was later moved to the notorious Kuje prison, where Binance claimed in a statement that he had no authority to make decisions at the business. At the time, Gambaryan’s wife claimed that Nigerian authorities had accused him of being a “blackmailer.”

Given Gambaryan’s status as a U. S. citizen, and one who had “been a cop my whole life”, it’s perhaps surprising that the U. S. government initially dragged its heels over his plight.

A Congressional delegation was traveling to Nigeria to discuss democracy and freedom at the time of Gambaryan’s detention, but neither they nor the State Department had any initial discussions with the Nigerian government, with the delegation claiming to have left before receiving messages from the Gambaryan family.

Indeed, it was several months before U. S. officials took notice of Gambaryan’s situation, during which his health worsened to the point where he collapsed in court on the second day of his trial.

By early June, efforts to secure Gambaryan’s release had ramped up. In writing to President Biden, his local representative, Rich McCormick (R-GA ), and House Foreign Affairs Committee Chairman Michael McCaul (R-TX ) and 14 of their House Republican colleagues. It declared that Gambaryan had been “wrongfully detained” by the Nigerian government, and urged the president to secure his release.

Days later, over 100 former federal prosecutors and federal agents wrote Secretary of State Tony Blinken, calling on the U. S. government to” step up its efforts” in Gambaryan’s case, and accusing Nigeria of denying him adequate medical care. As the Binance executive battled malaria and pneumonia, a bipartisan delegation of U. S. lawmakers visited him in prison, with Rep. French Hill (R-AR ) decrying the “horrible” conditions under which he was being detained.

By July, Gambaryan’s condition had deteriorated to the point where he needed a wheelchair in court, while Rep. McCormick and Rep. Hill had filed a resolution to ask for his immediate release and accused the Nigerian government of an attempt to extort his employer.

Yuki Gambaryan recounted her struggle to explain to her children where their father was as the months dragged on. ” My son saw an airplane in the sky and said,’ Mommy, look there’s an airplane. Is Daddy on the airplane? ‘”, she told the podcast.

Despite having” a significant amount of leverage” over Nigeria, McCormick claimed that the Biden administration had not “done enough to bring him home.”

The U. S. government, he told , was” not paying attention because there’s a lot of things going on this election cycle”. He also attributed the apathy around Gambaryan’s case to a crypto-related “laziness” on the part of the U. S. government, arguing that the industry is” something that’s very, very misunderstood still”.

He added that in contrast to its efforts to free WNBA star Brittney Griner from Russian custody, the Biden administration had been “hypocritical” in declaring Gambaryan as a” citizen wrongfully detained by a foreign government.

” We’ve gone to bat for a young, healthy individual, and we’re not going to bat for somebody who is in poor health”? after Gambaryan was seen struggling to walk in footage shot in court .asked McCormick.

Nigeria reacted abruptly in late October, dropping charges against Gambaryan and authorizing his release. Later that day, the U. S. Department of State announced that it had joined forces with Nigeria to launch a Bilateral Liaison Group on Illicit Finance and Cryptocurrencies, pointing to a backroom deal to secure Gambaryan’s release.

Whatever horse-trading had taken place behind the scenes, Gambaryan was on his way home, bringing to an end the “living nightmare” experienced by him and his family.

But even as Binance CEO Richard Teng lauded the executive’s “immense strength” and looked forward to “playing a constructive role” in Nigeria’s blockchain economy, Nigerian officials said that they would continue to pursue charges against the exchange. The underlying tensions that led to Gambaryan’s eight-month detention, it appears, still persist.