The simmering dispute between cryptocurrency exchange Binance and the Nigerian government has escalated, with Nigerian authorities demanding extensive user data and detaining two Binance executives for weeks.
According to a Financial Times report, Nigeria requested information on Binance’s top 100 users in the country, alongside their transaction history for the past six months. This demand coincides with the ongoing detention of Tigran Gambaryan, Binance’s compliance head, and Nadeem Anjarwalla, the Africa region manager. Both were arrested upon arrival in Abuja on February 25th at the Nigerian government’s invitation. Their detention, initially shrouded in secrecy, has now stretched into a third week.
The report suggests Nigeria views Binance as a potential threat to its efforts in stabilizing the national currency, the naira. Speculation centers around $26 billion of allegedly untraceable funds, with Nigeria potentially suspecting Binance’s role in facilitating such transactions. Additionally, Nigeria reportedly wants Binance to settle any outstanding tax obligations.
The situation has taken a drastic turn, with Binance removing the naira as a trading option on its platform. While neither Gambaryan nor Anjarwalla have been formally charged, a source close to the situation, speaking to the FT, described their detention as “hostage-taking.” The source did, however, acknowledge they were being treated well.
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Binance has maintained a cooperative stance, with a spokesperson stating their efforts “to bring Nadeem and Tigran back home to their families.” However, a court order authorizing the detention for 14 days expired on Tuesday. An extension hearing is scheduled for Wednesday, adding further uncertainty to the situation.
This escalating conflict raises concerns about user privacy and the relationship between cryptocurrency exchanges and national regulations. The coming days will be crucial in determining the fate of the detained executives and the future of Binance’s operations within Nigeria.
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