Binance CEO Richard Teng announced that with the release of Tigran Gambaryan, the company's head of financial crime compliance, from Nigerian custody, Binance is poised to assist Nigeria in addressing its economic challenges through blockchain technology. Teng made this statement in an October 24 post on X.
"Binance remains committed to collaborating with global regulators to ensure compliance and transparency in the evolving digital asset space," said Teng. "We are eager to put this episode behind us and continue working toward a brighter future for the blockchain industry around the world. With a young, tech-savvy population and a strong interest in digital finance, Nigeria is well-positioned to leverage blockchain technology to address economic and social challenges. We look forward to playing a constructive role in that effort."
According to reports, Gambaryan, a former U.S. federal agent, faced several health issues while detained in Nigeria on money laundering charges. These included malaria, double pneumonia, and a herniated disc that impaired his mobility. The New York Times reported that after sustained diplomatic and international pressure, including a letter from 18 bipartisan U.S. state attorneys general advocating for his release, the Nigerian government dropped the charges against him. On October 24, Gambaryan returned to the United States on a medically equipped flight. His detention had strained relations between the U.S. and Nigeria; however, with his release, the U.S. has committed to enhancing its partnership with Nigeria, particularly in cybercrime investigations.
Nigerian writer Cheta Nwanze commented on the situation by attributing the Nigerian government's actions towards Binance and Gambaryan's detention to an attempt to blame cryptocurrency for Nigeria's currency devaluation. "One word: misdirection," Nwanze said. Economist Shedrach Israel argued that banning crypto exchanges would not resolve the currency devaluation issue. "I don’t know why cryptocurrency is being seen as sabotage on the exchange rate because cryptocurrency is not the major means by which the dollar is flowing in Nigeria," Israel said. It is estimated that over 22 million Nigerians currently hold cryptocurrency.
A report from Chainalysis indicates that Nigerians are increasingly using cryptocurrency for everyday transactions such as bill payments and retail purchases. This trend reflects a shift from viewing crypto merely as an investment to recognizing its practical utility in daily life. Stablecoins like USDT and USDC are significant in Nigeria's crypto economy, comprising about 40% of stablecoin inflows in Sub-Saharan Africa. They provide protection against inflation and naira depreciation while facilitating more efficient cross-border payments and remittances compared to traditional methods.
Teng joined Binance in August 2021 after serving as CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market (ADGM), chief regulatory officer of Singapore Exchange (SGX), and director of corporate finance at the Monetary Authority of Singapore.
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