Nigerians Respond: "Not Kidnapped, Lawfully Detained" as CZ Revives Binance Controversy

A recent statement from Changpeng Zhao, founder of Binance, claiming the Nigerian government "kidnapped" former Binance executive Tigran Gambaryan sparked outrage in Nigeria. The backlash highlights issues of legal sovereignty and compliance in the ongoing tension between Binance and Nigerian authorities.

Key Takeaways

Controversial Statement: Changpeng Zhao claimed Nigeria "kidnapped" former Binance executive Tigran Gambaryan, which upset many Nigerians.
Legal Background: Gambaryan was detained for eight months due to serious allegations like money laundering and tax evasion against Binance.
Nigerian Response: Nigerians defended their sovereignty, stating the country's actions were within legal rights and underscoring the need for compliance with local regulations.
Binance's Legal Troubles: The Economic and Financial Crimes Commission (EFCC) has ongoing investigations against Binance, with significant lawsuits filed.

The Wave of Controversy: What Sparked CZ's Comments?

A diplomatic uproar has surfaced online following comments from Binance founder Changpeng Zhao (CZ), who accused Nigerian authorities of "kidnapping" Tigran Gambaryan, a U.S. citizen and former Binance executive. This statement has drawn significant backlash from Nigerians who are defending their country's legal rights.

CZ's comments came soon after U.S. President Donald Trump suggested potential military action against Nigeria related to alleged religious persecution. This coinciding of issues was particularly sensitive, linking tensions between the U.S. and Nigeria with Binance's ongoing legal challenges in the nation.

Clarifying Events in Abuja: Revisiting the Controversy

President Trump used his platform to declare that the U.S. might take aggressive action if Nigeria continues to "allow the killing of Christians." In this context, CZ's remarks stirred up an ongoing controversy about Gambaryan, the former Head of Financial Crime Compliance at Binance, who was arrested in Nigeria on February 26, 2024, amidst a comprehensive investigation into Binance's operations.

Zhao's post stated, “Nigeria also basically kidnapped Tigran Gambaryan, an ex-Binance employee and an ex-US federal agent, for 8 months without cause a year ago.” His assertion reignited discussions about the legal grounds for Gambaryan's detention.

Nigerian authorities arrested Gambaryan and another Binance executive, Nadeem Anjarwalla, as part of investigations into allegations of currency speculation, tax evasion, and money laundering. While Anjarwalla managed to flee, Gambaryan faced multiple charges, including money laundering amounts exceeding $35 million and was held in the Kuje Correctional Centre near Abuja for eight months. His health deteriorated during his detention due to malaria, pneumonia, and a chronic back issue.

After repeated denials of bail requests on the grounds of a potential flight risk, the Economic and Financial Crimes Commission (EFCC) eventually dropped the charges in October 2024, citing humanitarian grounds. Gambaryan was shortly thereafter released and returned to the United States. Despite this, the EFCC is still pursuing allegations against Binance, resulting in a lawsuit filed by the Nigerian government seeking $81.5 billion in back taxes and damages.

Nigerians Stand Firm: Defending Legal Authority

The term "kidnap" used by Zhao angered many Nigerians, who argued that the comments were misleading and disrespectful. One user on X wrote, “Nigeria did not kidnap anyone,” emphasizing that every sovereign nation has the right to enforce its laws and protect its economy. Another added that just as the U.S. established Binance.US for compliance, Nigeria has the authority to enforce local regulations.

Tola Joseph Fadugbagbe, a prominent advocate for Web3 in Nigeria, addressed Zhao in an open letter, urging him to retract his statement and highlighting the damaging language used. Some users criticized CZ for perceived double standards, noting that his own detention in the U.S. for anti-money-laundering violations was framed as justice, while Nigeria’s legal actions were labeled as "kidnapping."

It's important to note that under Nigerian law, entities operating financial platforms must obtain licenses from the Securities and Exchange Commission (SEC) and follow anti-money-laundering laws. Violations of these laws can lead to criminal charges, fines, or asset forfeiture, illustrating the importance of compliance in the country's regulatory landscape.