Binance’s Gambaryan returns home after 8-month Nigerian legal standoff

After eight months of detention in Nigeria, Binance’s compliance chief Tigran Gambaryan has finally been released—marking a significant turn in one of the crypto industry’s most watched legal battles.

Gambaryan, known for his extensive career tracking financial crime and cryptocurrency theft for the IRS, was arrested in February on allegations of money laundering, charges both he and Binance denied. His prolonged detention became a flashpoint between Nigeria and the United States, sparking diplomatic tension and drawing the attention of crypto advocates worldwide.

Great news today about the Nigerian government dropping charges against @binance’s Tigran Gambaryan, a U.S. citizen and former government official. Gambaryan is set to be released from a Nigerian prison where he’s spent the last 8 months. https://t.co/8pisR5N7qy

— Eleanor Terrett (@EleanorTerrett) October 23, 2024

Gambaryan’s release, reportedly due to both his deteriorating health and mounting diplomatic pressure from the US, concludes a prolonged legal standoff. During his detention, the executive endured harsh prison conditions, with his family and advocates raising concerns about his worsening health.

Despite repeated attempts for bail, Nigerian authorities twice denied his requests as part of their aggressive crackdown on crypto-related activities.

In a court hearing last week, Gambaryan was unable to attend due to health complications, including a herniated disc, pneumonia, tonsillitis, and malaria—conditions worsened by his time in prison. Ultimately, Nigerian authorities dropped the charges, leading to his release.

The arrest originated from Nigerian authorities’ claims that Gambaryan and Binance were involved in a $35.4 million money laundering case. Nigerian officials alleged that Binance’s operations contributed to economic turmoil, linking the company to currency speculation and exchange rate manipulation. Both Binance and Gambaryan denied these allegations.

This case is part of Nigeria’s broader crackdown on cryptocurrency firms, driven by concerns over money laundering and terrorism financing. Despite these serious allegations, Gambaryan’s urgent need for medical treatment was a crucial factor in his release.

Fortune reported his health had deteriorated to the point where he required assistance to walk and would need high-risk surgery for his back condition.

While health concerns played a key role in Gambaryan’s release, diplomatic pressure also mounted. The US government had been pressing Nigerian authorities for months, with 16 members of Congress urging the White House to classify the situation as a hostage case. The matter escalated into a diplomatic dispute, with US officials warning of potential damage to the countries’ relationship.

Following his release, Gambaryan left Nigeria and reunited with his family. Binance CEO Richard Teng expressed relief on X, stating, “We are deeply relieved and grateful that Tigran Gambaryan has finally been released after enduring nearly eight months of detention in Nigeria.”

We are deeply relieved and grateful that Tigran Gambaryan has finally been released after enduring nearly eight months of detention in Nigeria. Throughout this difficult period, Tigran has shown immense strength, and we commend his resilience in the face of such severe adversity.…

— Richard Teng (@_RichardTeng) October 24, 2024

Before his work at Binance, Gambaryan spent over a decade as a special agent with the IRS, where he gained renown for his expertise in financial crime investigations. He is best known for his role in tracking 650,000 Bitcoins stolen from the now-defunct Mt. Gox crypto exchange and helping to bring down the dark web marketplace AlphaBay.

His other notable accomplishments include his work dismantling the child abuse network “Welcome to Video” and aiding the historic seizure of 69,370 Bitcoins stolen from the Silk Road, a dark web drug market.

Gambaryan’s case is not the only recent legal battle involving Binance executives. Earlier this year, Binance’s founder and former CEO Changpeng Zhao (CZ) was sentenced to four months in prison for violating the Bank Secrecy Act (BSA) due to alleged lapses in Binance’s know-your-customer (KYC) protocols. In addition to his sentence, CZ was ordered to pay a $50 million fine and step down as CEO, a role from which he was released in September.

While Gambaryan’s case has now come to a close, the legal challenges facing Binance and its executives are far from over. The exchange continues to face scrutiny from regulators around the world as governments grapple with the implications of crypto’s growing role in the global financial system.