Reported by Willem Marx

(Summarized version of original article)

Tigran Gambaryan, an expert in tracing cryptocurrency transactions tied to criminal activities, has had an extensive career working with various law enforcement agencies, including the California Franchise Tax Board, the IRS, and Europol. He played a crucial role in shutting down contraband marketplaces like Silk Road. Three years ago, he joined Binance to help the cryptocurrency platform improve its internal compliance mechanisms. His efforts contributed to freezing over $2.2 billion in assets related to fraudulent activities. However, his current situation starkly contrasts his previous work; Gambaryan now finds himself in a Nigerian prison, charged with money laundering and operating an unlicensed financial institution.

Gambaryan’s arrest highlights the tense relationship between cryptocurrency exchanges and authorities in countries like Nigeria, where local currencies are unstable, and citizens increasingly turn to virtual currencies for financial security. The Nigerian government claims platforms like Binance foster currency manipulation and criminality, especially through peer-to-peer trades. In June 2023, Nigeria’s Securities and Exchange Commission ordered Binance to cease operations targeting locals, accusing the platform of accelerating the naira’s depreciation. Despite Binance’s claims of compliance and cooperation with Nigerian authorities, including responding to hundreds of information requests, tensions continued to rise.

Gambaryan’s situation worsened after a visit to Nigeria in January 2024. He was involved in discussions with local authorities, including Nigeria’s national security and financial regulators. After a meeting with the Economic and Financial Crimes Commission (EFCC), armed men detained Gambaryan and a colleague, Nadeem Anjarwalla. Despite Binance complying with demands to delist the naira and provide information on users, both men remained in custody. While Anjarwalla managed to escape the country, Gambaryan was moved to Kuje prison, where his health deteriorated.

His family and legal team report that Gambaryan suffers from multiple health conditions, including pneumonia, malaria, and a herniated disk, which have worsened during his time in prison. Despite pleas for his release from US Congress members, his trial has been delayed, with limited access to his legal team. The US government has intervened, requesting his release on humanitarian grounds, but Nigerian authorities continue to press criminal charges against him, making the situation increasingly complex.

As Gambaryan’s trial resumes in October 2024, his case has sparked outrage within Binance and among international regulators. Colleagues describe him as someone dedicated to fighting financial crimes, with his detention viewed as a significant injustice. While efforts are being made to secure his release, his future remains uncertain, with both his legal and physical well-being at stake.

Read original article: https://www.bloomberg.com/news/articles/2024-09-19/binance-s-tigran-gambaryan-in-nigerian-jail-charged-with-money-laundering?embedded-checkout=true