The United States government is pressuring Nigeria to release Tigran Gambaryan, an executive of Binance and a former law enforcement officer, who has been detained since February.
Tigran was arrested during a business trip in Nigeria and we have been hearing reports for months that he is facing severe health problems in prison.
Now US diplomats are urging the authorities to release him on humanitarian grounds.
Tigran’s detention has strained diplomatic relations between the two countries. Secretary of State Antony Blinken personally addressed the issue with his Nigerian counterpart in May.
US Ambassador to Nigeria, Richard Mills, has also been in private discussions with Nigerian officials, including President Bola Tinubu and key members of his administration.
Right now, Tigran is mostly bedridden and may need surgery, as his health continues to decline.
How’d he end up here?
Tigran went to Nigeria in February to have some meetings about Binance’s operations in the country.
The government accused Binance of contributing to the decline of its national currency, the naira, by allowing users to transfer funds out of the country. This apparently had a detrimental effect on the country’s economy.
Because of that, prosecutors charged Tigran and Binance with tax evasion and money laundering. Though the tax charges were dropped, the money laundering charges remain.
Binance, on its part, has strongly denied these allegations, saying that Tigran is a mid-level employee and should not be held responsible for the company’s overall actions. You’d think that would be obvious.
Tigran had no decision-making authority over anything. In a statement, Binance said it had “great respect” for the Nigerian government and stressed that they are continuing discussions to resolve the issue.
Tigran joined Binance in 2021. His role involved managing compliance operations and coordinating with law enforcement agencies worldwide to address crypto-based crimes.
After his arrest, Tigran was moved to Kuje prison in Abuja, a facility known for housing some of the most dangerous individuals, including members of Boko Haram and the Islamic State.
The prison’s conditions have been cited as a factor in Tigran’s deteriorating health. His family, who has been advocating for his release, has shared that he now relies on a single crutch to walk and struggles with the effects of a decade-old herniated disc injury.
Nigeria’s attorney general told us that Tigran would only be considered for a pardon after a full trial.
US lawyer Robert Litt, representing Tigran, described the charges as “trumped-up” and called for the US State Department to officially classify Tigran as “wrongfully detained” under the Levinson Act.
This designation could make the situation even worse and lead to sanctions against Nigerian officials or other diplomatic measures.
The government came after Binance shortly after the company settled a $4.3 billion case with US regulators over allegations of money laundering.
In that case, Binance’s founder, Changpeng Zhao, stepped down as CEO after pleading guilty. He received a four-month prison sentence, and is set to come out later this month.
What this could mean for US-Nigeria relations
Since June, the US State Department has been pushing Nigeria for Tigran’s release. But some in the US believe the government isn’t doing enough.
Robert has repeatedly called for a more aggressive approach, urging the State Department to invoke the Levinson Act to categorize his client as wrongfully detained.
According to the lawyer, this would increase the pressure on Nigerian officials and potentially expedite Tigran’s release.
“In the past several years, he, along with his FCC team, responded to more than 600 information requests coming from Nigerian law enforcement agencies or related to investigations pertinent to Nigeria.”
– Binance
Still, US officials are hesitant to escalate the situation, as they continue to monitor Nigeria’s legal process. One senior official said that the US still has faith in Nigeria’s judicial system.
But knowing what I know, I’m pretty sure the authorities view America’s involvement as interference in their internal legal matters. Even though Tigran is American, *and* innocent.
The two countries are strategic partners in many areas, including counterterrorism efforts and economic cooperation.
Nigeria is the second-largest trading partner for the US in Africa, with $1.2 billion in US aid provided to Nigeria in the 2022 fiscal year. The relationship between the two countries has always been largely friendly.
Despite these issues, Binance continues to operate globally. The company replaced Zhao with Richard Teng, a former regulator from Singapore.
Under his leadership, Binance has downsized, laying off 3,000 of its employees as it restructures to comply with global regulations.
Binance was also working with Nigerian authorities to regulate cryptocurrency transactions before Tigran’s arrest.
Nigeria has become an important crypto market due to its rapid adoption. According to data from Chainalysis, it has the second-highest rate of crypto adoption globally, behind only India.
Many Nigerians have turned to cryptocurrencies as an alternative to the weakening naira.
Meanwhile, Tigran’s wife Yuki said she would be “very upset” if US officials allowed Nigerian leaders to attend diplomatic events without addressing her husband’s case.
As of now, Tigran remains in Kuje prison, awaiting trial. With high-level Nigerian officials expected to attend the United Nations General Assembly in New York this month, the case is likely going to be a key topic of discussion.
