Binance’s CEO, at the helm of the renowned cryptocurrency platform, asserted that individuals of undisclosed identities, purporting to represent Nigerian officials, demanded substantial cryptocurrency payments to resolve the company’s challenges within the country.
Richard Teng, appointed as the firm’s chief executive officer following the departure of founder and former CEO Changpeng Zhao, made these claims public in a blog post released on Tuesday, May 7, through Binance’s official website. He disclosed that the request was communicated through a local firm engaged by Binance.
Discussing Binance’s ongoing issues with the Nigerian government, Teng provided a detailed account of the attempts made by the world’s largest cryptocurrency exchange to engage with Nigerian authorities. This included a meeting held on January 8 in Abuja, during which Binance was confronted with criminal allegations. Despite repeated requests, Binance had not received detailed information regarding the allegations. Consequently, employees sought the opportunity to provide written responses in the absence of a public hearing.
Following the meeting, Teng recounted that employees were approached by unknown individuals suggesting a payment settlement to resolve the allegations. Later that day, Binance’s local counsel was summoned and presented with demands for a significant cryptocurrency payment to resolve the issues clandestinely within 48 hours. Concerns over safety prompted the immediate departure of Binance’s team from Nigeria.
The payment demand was promptly declined by Binance through its legal counsel, considering it an illegitimate settlement offer. Binance clarified its willingness to engage in settlement negotiations under specific conditions, including visibility into the allegations and a formal, documented agreement signed by all relevant parties.
Moreover, Teng emphasized the importance of protecting Binance’s contractors and employees from intimidation, harassment, or detention. He revealed that Nigerian authorities initially objected to Binance’s conditions but eventually agreed.
Continuing its engagement with Nigeria, two Binance officials, Nadeem Anjarwalla and Tigran Gambaryan, were dispatched to discuss further terms with the Nigerian government. However, on February 28, they were arrested. Anjarwalla later escaped detention, while on March 25, Nigeria’s government filed criminal charges against Binance for tax evasion.
Teng appealed to the government to release Gambaryan and vowed to cooperate with Nigerian law enforcement, as Binance had done voluntarily over 600 times in the past. He reiterated Binance’s commitment to protecting innocent users and pledged ongoing engagement with Nigeria’s Federal Inland Revenue Service to address potential historic tax liabilities.
