Binance CEO Richard Teng has denied allegations from the Nigerian government regarding money laundering and terrorism financing on the platform, calling for the release of detained employee Tigran Gambaryan. The crypto exchange and two of its executives, Gambaryan and Nadeem Anjarwalla, are accused of laundering over $35 million. There are claims that Nigerian officials demanded a bribe of $150 million from Binance.
Short Narrative:
Binance CEO Richard Teng has spoken out against the Nigerian government’s detention of Binance employees Tigran Gambaryan and Anjarwalla, who were arrested in February following a ban on the Binance website in Nigeria. The government accuses Binance of facilitating money laundering and terrorism financing, but Teng argues there is no valid reason for holding an innocent employee to address these allegations. He further refuted claims that Binance caused Nigeria’s currency decline and clarified that Nigeria has never been a significant market for Binance.
Key Details:
- The Case: The Nigerian government accuses Binance and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, of laundering over $35 million.
- Arrest and Allegations: Nigerian authorities arrested Binance executives following accusations of money laundering and terrorism financing.
- CEO’s Response: The new Binance CEO, Richard Teng, denies the charges, stating that holding employees is unnecessary and emphasizing Binance’s history of resolving regulatory issues without harming staff.
- Currency Misconception: Teng disputes claims that Binance affected the Nigerian currency, explaining macroeconomic factors caused the decline.
- Market Clarification: Teng clarified that the Nigerian market was not a significant source of revenue for Binance, countering claims of high earnings from the region.
Actionable Insight:
Binance has faced similar allegations in other jurisdictions. In November 2023, Binance and its then-CEO Changpeng Zhao (CZ) reached a $4.2 billion settlement and pleaded guilty to money laundering charges. CZ was sentenced to four months in prison, which he is currently serving, with a scheduled release at the end of September 2024. Although the CFTC was involved in the settlement with Binance and CZ, the SEC did not participate, leaving its own complaint against Binance unresolved. This ongoing SEC case could lead to additional fines or settlements, highlighting the ongoing regulatory scrutiny Binance faces globally. Crypto companies should remain vigilant and ensure compliance with all regulatory standards to mitigate similar risks.
Read More:
- SEC complaint against Binance and CZ
- U.S. DOJ settlement with Binance and CZ
- Latest Punch report on the Binance Nigeria case
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