Binance CEO Reveals Alleged Coercion for Secret Crypto Settlement by Nigerian Officials

Binance CEO, Richard Teng, disclosed startling allegations of coercion by Nigerian officials, purportedly pressuring the exchange into a clandestine settlement paid in cryptocurrency during early 2024 meetings.

Teng's revelations shed light on the detention of Tigran Gambaryan, a former United States Internal Revenue Service agent heading Binance's financial crime compliance team, during a business trip to Nigeria. Teng condemned the Nigerian government's actions, denoting it as a "dangerous precedent" for global companies, particularly after the detention of two Binance employees.

Regulatory Tensions: Binance's Engagement with Nigerian Authorities Under Scrutiny

Binance's engagement with Nigerian authorities included participation in regulatory discussions and cooperation with law enforcement agencies. Discussions commenced following a request from the chairman of the House of Representatives Committee on Financial Crimes (HCFC), leading to public investigative hearings.

A public hearing was scheduled where Binance was expected to respond to allegations publicly. However, Teng claimed that Binance had not received details of the allegations and sought to submit written responses. The HCFC committee reportedly raised issues concerning Binance's operations in Nigeria and threatened legal action against the exchange.

Coercion and Compromise: Binance Executives Detained Amid Alleged Secret Settlement Negotiations

Allegedly, Binance was approached by unknown individuals proposing a significant payment in cryptocurrency to settle the allegations secretly. Binance's refusal prompted further engagement in settlement negotiations, with subsequent meetings involving various government representatives.

Binance’s conditions to continue engaging in settlement negotiations following allegations of an off-record settlement proposal. Source: Binance

The situation intensified when Nigerian officials demanded actions from Binance, leading to the detention of Gambaryan and another Binance executive. Despite assurances of safe passage, they were held against their will, with their passports and mobile phones confiscated. Gambaryan's release is reportedly contingent on Binance's compliance with Nigerian demands.

Binance Responds: Suspending Services Amid Regulatory Uncertainty in Nigeria

In response, Binance suspended certain services in Nigeria in a bid to resolve the situation and secure Gambaryan's release. The unfolding events highlight the challenges faced by cryptocurrency exchanges amid regulatory uncertainty and alleged coercion by authorities.

Allegations of coercion by Nigerian officials, including demands for secret cryptocurrency settlements and detention of Binance representatives, have raised concerns about regulatory overreach and the safety of business operations in the country. Binance's response underscores the complexities and risks inherent in navigating regulatory environments, particularly in emerging markets.