Crypto clampdown in Nigeria: United States Congress advocates for Binance executive's freedom from Nigerian jail
In a significant development, U.S. lawmakers have introduced House Resolution 1348, calling for the release of Tigran Gambaryan, a Binance executive who has been detained in Nigeria since February 2024.
The resolution, submitted by Representatives Patrick McHenry and French Hill on July 10, 2024, comes after a series of events that have raised concerns about Nigeria's business environment, regulatory consistency, and enforcement transparency.
Gambaryan's detention follows a compliance visit by Nigerian authorities, amid allegations against Binance related to illegal foreign exchange trading and currency manipulation. These activities, as claimed by Nigerian officials, contributed to the devaluation of the naira.
However, the case has been marked by delays, court postponements, and questions about its legality. There was allegedly no valid court order for Gambaryan's detention from March 12 to April 5, 2024.
Gambaryan spent approximately eight months in prison before being released on humanitarian grounds due to health concerns after diplomatic negotiations, including involvement from the Biden administration. Despite his release, Gambaryan filed a lawsuit against Nigeria's National Security Adviser and the Economic and Financial Crimes Commission, indicating ongoing legal disputes.
The resolution urges swift action by mid-July when Nigerian courts typically recess until September. It presses the U.S. government to declare Gambaryan as "wrongfully detained."
Gambaryan's wife, Yuki, has also urged the Economic and Financial Crimes Commission to follow the Federal Inland Revenue Service's example and drop the charges against Tigran. She has pleaded for proper medical care as he battled malaria and a throat infection.
Nigerian officials have openly stated in court that Gambaryan is being held as leverage against Binance. Despite a court order on May 23 for hospital admission, Gambaryan was only given a 5-hour hospital visit on June 4 before being returned to prison.
Throughout his detention, Gambaryan has been unable to speak privately with his attorneys, family, or U.S. embassy staff. If unresolved, Gambaryan could face an extended period of detention without further hearings.
The potential damage to Nigeria's reputation and investor trust may outweigh any short-term gains from these actions, potentially deterring future foreign investment and economic opportunities. As the case continues to unfold, it remains a significant challenge for Nigeria to rebuild trust in its regulatory stance on crypto and stablecoins.
For a comprehensive timeline of events related to this story, Mariblock has published a report detailing the Nigeria vs. Binance timeline. You can find the complete backstory there.
- The resolution, introduced by Representatives Patrick McHenry and French Hill, calls for the release of Tigran Gambaryan, a Binance executive detained in Nigeria since February 2024.
- The business environment, regulatory consistency, and enforcement transparency in Nigeria have been raised as concerns following a series of events involving Gambaryan's detention.
- The detention comes after a compliance visit by Nigerian authorities, with allegations against Binance regarding illegal foreign exchange trading and currency manipulation.
- The case has been marked by delays, court postponements, and questions about its legality, with allegedly no valid court order for Gambaryan's detention from March 12 to April 5, 2024.
- Gambaryan's ongoing legal disputes include a lawsuit against Nigeria's National Security Adviser and the Economic and Financial Crimes Commission as a result of his detention.
- The resolution urges swift action by mid-July, presses the U.S. government to declare Gambaryan as "wrongfully detained," and urges the Economic and Financial Crimes Commission to drop the charges against Tigran.
- The potential damage to Nigeria's reputation and investor trust, as a result of the ongoing situation, may outweigh any short-term gains, potentially deterring future foreign investment and economic opportunities in the digital assets, blockchain, and crypto industry.
