Detained Employee Not Part of Binance Management – Crypto Firm

Binance has refuted claims linking its detained employee, Tigran Gambaryan, to its management team, asserting that Gambaryan is solely a law enforcement officer without decision-making authority within the company. In a statement, the cryptocurrency exchange clarified Gambaryan’s role and emphasized his commitment to law enforcement despite his arrest in Nigeria on suspicion of involvement in money laundering activities alongside colleague Nadeem Anjarwalla. While Gambaryan remains in custody, Anjarwalla has fled the country, prompting inquiries about his whereabouts, to which Binance has yet to respond. Binance outlined Gambaryan’s contributions to compliance efforts since his hiring in 2021, including assisting in freezing and seizing assets worth billions of dollars globally. Part of Binance’s statement reads, “Tigran is a strict law enforcement professional and is not part of Binance management. While he has left the official service of the U.S. government, he has remained fully committed to the role of law enforcement officer ever since, operating as a global advocate for good governance and transparent regulatory financial practices. “Binance respectfully requests that Tigran Gambaryan, who has no decision-making power in the company, is not held responsible while current discussions are ongoing between Binance and Nigerian government officials. “In 2022 and 2023, Tigran’s Financial Crime Compliance team assisted global law enforcement in freezing and seizing more than $2.2b worth of assets, including more than $285m in cooperation with United States agencies like the FBI, DOJ, DEA, and others,” it said.

Binance Boss Summoned Over Alleged Terrorism Financing

CEO of Binance Holding Limited, Richard Teng has been summoned by the  House of Representatives Committee on Financial Crimes over the allegations of money laundering and financing of terrorism. The Chairman of the Committee, Ginger Onwusibe, issued a seven-day ultimatum to Binance Holdings bossto appear before the committee by March 4, 2024. Recall that the federal government banned the major online crypto platforms to avert the continuous manipulation of the forex market and illicit movement of funds, while Binance, an online cryptocurrency exchange, was accused of money laundering by the Central Bank of Nigeria. Onwusibe warned that the committee will take appropriate measures if the Binance head fails to heed the summon. He criticized Teng for his persistent refusal to attend despite several invitations, highlighting the company’s apparent disregard for the country’s established laws regarding business and financial operations. The committee, under the chairmanship of Onwusibe, sent a letter dated December 12, 2023, summoning the Managing Director of Binance for a hearing scheduled on December 18, 2023. Onwusibe emphasized the committee’s determination to combat financial crimes, citing the authority granted by the Nigerian Constitution to safeguard citizens from such offences, particularly those perpetrated by foreign entities. He highlighted the urgency of protecting the nation’s finances, especially amidst economic challenges like recession, and underscored the seriousness of allegations against Binance, including terrorism financing, money laundering, and tax evasion. Onwusibe stressed the need to preserve tax revenues and prevent channels for funding terrorism while prioritizing the protection of Nigerian investors from exploitative practices by firms like Binance. He insisted on accountability for tax payments and the establishment of physical offices for addressing consumer grievances, signalling an end to exploitation and a commitment to holding perpetrators accountable. Onwusibe said, “The constitution of the Federal Republic of Nigeria has empowered us to protect Nigerians from financial crimes, especially by foreign companies. “We also have to protect and defend the country’s finances, especially now that the country is nose-diving into recession. The allegations of terrorism financing, money laundering and tax evasion, amongst others, levelled against Binance, are damning enough. “At this material time, we need all the tax dollars and to block the leaks and channels to financing terror. “It is also our duty to do everything in our power to protect Nigerian investors from predatory firms, and no distraction and manipulation can stop us. “You cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.“

Binance Reacts To $10 Billion Fine by Federal Govt

Cryptocurrency exchange Binance Holdings Ltd has denied allegations made by the Nigerian government claiming it has been fined $10 billion for illegal operations contributing to the devaluation of the naira. The Nigerian government’s Special Adviser on Information and Strategy, Bayo Onanuga, said that the hefty fine was imposed on Binance as part of efforts to salvage the value of the national currency. In an interview with the BBC, Onanuga disclosed that the government’s actions were aimed at addressing the impact of Binance’s activities on the country’s economic stability. However, in response to these claims, a Binance official speaking to Peoples Gazette emphasized that while discussions were held with the Nigerian government to address concerns, no demand for a $10 billion fine was made. “We recently discussed ways to resolve issues with Nigeria, but we did not hear any demand for $10 billion,” stated the official. Furthermore, the official clarified that Binance is not currently engaged in negotiations with the Nigerian government to reinstate its services or release detained executives. Despite the ongoing dispute, the company said it remains committed to fostering positive relations with the Nigerian government and its citizens. However, it reiterates its firm stance against paying fines for personnel or services. “Our aim is to chart a good relationship with the government and the people of Nigeria. We want to see our services restored in Nigeria very soon, but we have no intention of paying fines for personnel or services,” the Binance official said.

Do business with Binance at your own risk, SEC warns Nigerians

The Securities and Exchange Commission (SEC) has warned Nigerians against doing business with Binance Nigeria, saying that they were doing so at their own risk. According to a circular by the Commission at the weekend, the activities of Binance in the country was illegal. Binance Nigeria Limited is a subsidiary of the well-known global cryptocurrency exchange, Binance. According to the circular, “The attention of the Securities and Exchange Commission (the Commission) has been drawn to the website operated by Binance Nigeria Limited, soliciting the Nigerian public to trade crypto assets on its various web and mobile-enabled platforms. Binance Nigeria Limited is neither registered nor regulated by the Commission and its operations in Nigeria are therefore illegal. “Any member of the investing public dealing with the entity is doing so at his/her own risk”. The SEC further stated that “as the regulator with the statutory mandate of investor protection, the Commission urges Nigerians to be wary of investing in crypto-assets, and crypto-asset related financial products and services if the service provider/its platform is not registered or regulated by the Commission. The Commission, therefore, warned Nigerian investors that investing in crypto-assets is extremely risky and may result in a total loss of their investments. “By this circular, Binance Nigeria Limited is hereby directed to immediately stop soliciting Nigerian investors in any form whatsoever. “The Commission shall provide updates on further regulatory actions with respect to the activities of Binance Nigeria Limited, and other similar platforms and shall work with other regulators in Nigeria to provide further guidance on this matter” the SEC added.