Binance Executives Held Captive in Nigeria For Two Weeks Amidst $10 Billion Penalty Demands

Two Binance executives Tigran Gambaryan and Nadeem Anjarwalla are now facing a difficult situation after being detained by Nigerian authorities for two weeks. This development comes in the wake of accusations leveled against the cryptocurrency exchange by the Nigerian government.

The controversy began on March 4 when Gambaryan and Anjarwalla were scheduled to appear before the House Committee on Financial Crimes in Nigeria. Instead, their legal representatives took the stand, a move that seemingly did not sit well with government officials. 

Expressing dissatisfaction with the executives' absence, Committee Chairman Obinna Ginger announced a warrant for their arrest. Families of the executives revealed that they were relocated to a "guesthouse" run by the National Security Agency of Nigeria following the meeting.

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Cryptocurrency Exchange Accused of Enabling Untraceable Funds

There are reports that Nigeria is demanding $10 billion in penalties from Binance. The accusations revolve around the exchange allegedly facilitating the processing of $26 billion in untraceable funds within the country. 

Gambaryan, Binance's head of financial crime compliance and a U.S. citizen, and Anjarwalla, the Kenya-based regional manager holding dual citizenships of the U.K. and Kenya, find themselves entangled in a legal battle. 

The fact that Gambaryan was a member of the IRS-CI Cyber Crimes Unit brings an ironic twist to the situation given his background in cryptocurrency investigations and law enforcement.

Worth noting, the detained executives were also visited by British and American government officials. However, these meetings occurred in the presence of Nigerian government guards, according to Wired. 

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Binance's Defensive Stance

Despite mounting pressure, Binance has refrained from disclosing details regarding the accusations or demands made by the Nigerian government. Instead, the cryptocurrency exchange reiterated its commitment to securing the safe return of the detained executives.

In a parallel development, Binance recently discontinued all services involving the Nigerian naira (NGN) after facing regulatory scrutiny. The cryptocurrency exchange also announced the suspension of NGN withdrawals after March 8.