Iyinoluwa Aboyeji, a prominent figure in Nigeria’s financial sector, has called for the release of Tigran Gambaryan, Binance’s head of financial-crime compliance, who has been detained in Nigeria since February 2024. Aboyeji’s plea comes after a Nigerian court rejected Gambaryan’s bail application on health grounds.
Aboyeji, through his Linkedin page, argues that Nigeria’s approach to dealing with Binance’s regulatory defiance is not in line with global best practices. He points out that the CEO of Binance, CZ, was released from a US jail cell after just four months, whereas Gambaryan has been detained for almost eight months.
Aboyeji believes that Nigeria should fine Binance instead of indefinitely detaining Gambaryan, citing concerns over the impact on the country’s ability to participate in the global digital assets revolution. In his words, “Rather than indefinitely detaining Mr Tigran, the government should assess back taxes, fines for regulatory non-compliance and other forfeiture of assets discovered to have been routed through Binance’s peer to peer systems against Binance and seek the US’ collaboration in ensuring prompt payment of these penalties by Binance.”
“This will not only put us back in line with global best practice on this matter but it will still send the strong message that while we are not an unreasonable people, any violation of our statutes will not go unpunished.”
“I have spoken [to] global businesses and investors in the digital asset space who are excited by the progressive regulation of the SEC and eager to engage on the basis of these new regulations but have had to shy away as a result of concerns about their personal safety in the wake of these arrests”, said Aboyeji.
Key Concerns
-
- Detention Period: So far, Gambaryan’s detention period far exceeds that of Binance’s CEO, CZ, who was sentenced to just four months in the US.
-
- Regulatory Approach: Nigeria’s approach is seen as inconsistent with global best practices, potentially deterring foreign investment.
-
- Economic Impact: The detention may harm Nigeria’s chances of participating in the global digital assets revolution, which could provide employment opportunities for thousands of young Nigerians.
Aboyeji suggests that the Nigerian government should:
-
- Assess back taxes and fines for regulatory non-compliance against Binance.
-
- Seek US collaboration to ensure prompt payment of penalties.
-
- Adopt a more progressive regulatory approach, aligning with global standards.
“Nigeria may as a result miss out on a generational opportunity to participate in global digital assets revolution which could gainfully employ thousands of our young people”, laments Aboyeji.
Some Reactions
Absolutely spot on. As a man who has helped governments fight money laundering and financial crimes in the past, Mr Tigran doesn’t deserve this rather indiscriminate version of justice. I make a passionate appeal for the government to let him reunite with his loved ones. They can work with Interpol to issue a Red Notice for those Binance directors involved in the crimes in question.- Patrick Herbert, Lawyer
Valid point! The time to act is now! The damage to the country from this act is simply unbelievable, crypto bad actors now have Nigeria as a place to hibernate as no international cooperation is coming for [law enforcements] to help bring any bad actor to book until Tigran is released and allowed to reunite with his family, this case is now a global case study for compliance professionals occupational hazard. Whatever we are planning to gain from it is already lost in economic value. Good you added your voice- Adededi Owonibi, Forensics expert
The whole thing does not even make sense. He is an employee that probably does not write a lick of code and has no idea of the inner workings of the day to day operations of the organization in Nigeria. When a plane crashes – we sue the airline – not the family of the pilot. If oil spills in the ocean we sue Exxon not the Exxon employee. I have had to deal with this where something that was done by a company I am a director in led me into handcuffs – in Ghana. I swear I was asking the operations team to feel me in on what the matter was – I had no idea. And my point – sue, ban, shut down the company or revoke their license. Corporations are entities and charges must be brought on corporations and if corporations find bad apples, they are free to pursue actions civil or criminal against that employee. But to hold me for my employers sins? Does anyone actually think this dude knew anything that was going on in Nigeria? His rights of Habeas corpus are being violated and even beyond the commercial may not make people want to invest in Nigeria anymore – The Nigerian Civil Liberties Union and the Nigerian Bar Association as friends of the court dropped the ball on this. Release for ill health? Like why was he locked up to begin with?- Ebun O, a FinTech Entrepreneur
Iyinoluwa Aboyeji, you’re spot on. I’ve been following this saga for a while now – and when you consider the number of multi-nationals exiting Nigeria, this isn’t a good look. At a time when Nigeria needs to show the world that it is innovative, open for business and adheres to the rule of law (or some semblance of it)- Isaiah Olateru, Architect
This is why your nation will find it hard to transition into a first world nation anytime soon. And I mean not under two centuries! — Ugaidi na kiuduthoness mingi. The randomness and erratic nature of your business environment works against you sana. Your nation is too much.- Stephen K. Muriithi, Investor
As Nigeria navigates the complex world of cryptocurrency regulation, Aboyeji’s comments highlight the need for a balanced approach that helps Nigeria truly address concerns over tax evasion, money laundering, and terrorism financing while also promoting innovation and foreign investment.
Meanwhile, Tigran Gambaryan has been dropped as a co-defendant in the Federal Inland Revenue Services (FIRS) tax-evasion case against Binance. A Nigerian court made this ruling after Binance appointed a local representative, Ayodele Omotilewa, as required by the authorities. This development brings some relief to Gambaryan and his family, who had argued that he, as a U.S. citizen and Binance’s head of financial crime compliance, shouldn’t be held accountable for the company’s actions in Nigeria. Despite being dropped as a co-defendant in that case, his ordeal isn’t over yet, as he’s still being held at the Kuje Correctional Centre due to the separate action by the Economic and Financial Crimes Commission (EFCC), alleging money laundering and terrorism financing. In the present circumstances, continuing to prosecute and detain Gambaryan appears to have become counterproductive for the Nigerian government.
Should Tigran Gambaryan be released by the Nigerian government? Share your thoughts with Man Around Town.
