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Hassan Shittu
Journalist
Hassan Shittu
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A diplomatic firestorm erupted online after Binance founder Changpeng Zhao (CZ) accused Nigerian authorities of “kidnapping” former Binance executive and US citizen Tigran Gambaryan, a claim that sparked a fierce backlash from Nigerians who defend their country’s legal sovereignty.
Zhao’s remarks, made in a now-deleted post on X, came shortly after US President Donald Trump threatened possible military action against Nigeria over alleged religious persecution.
The timing of CZ’s statement linked two already volatile issues: US-Nigerian tensions and Binance’s ongoing legal disputes in the country.
What really happened in Abuja? The CZ Question Post is back
Trump stated on Social Truth that the United States could “go guns-a-blazing” if Nigeria “continues to allow the killing of Christians.”
The situation intensified further when CZ referred to Binance’s past conflict with Nigeria, reigniting a year-long diplomatic and legal wound.
In his post, Zhao wrote: “Nigeria also basically kidnapped Tigran Gambaryan, a former Binance employee and former US federal agent, for 8 months without cause a year ago.”
His statement reignited a year-long controversy surrounding the former Binance Head of Financial Crime Compliance and a former US federal agent, Gambaryan’s arrest on February 26, 2024, when Nigerian authorities. arrested him and another Binance executiveNadeem Anjarwalla, amid sweeping investigations into the operations of the exchange.
The authorities accused Binance of facilitating currency speculation, tax evasion and money laundering.
learnwhile Gambaryan was charged with multiple counts of money laundering involving more than $35 million, tax evasion, and operating without a license.
He was held at the Kuje Correctional Center near Abuja for eight months, during which his health declined due to malaria, pneumonia and a chronic condition.
His bail requests have been denied twicewith the court citing a potential flight risk after Anjarwalla’s escape.
In October 2024, the Economic and Financial Crimes Commission (EFCC) dropped all charges on humanitarian groundsstating that Gambaryan has no personal responsibility for Binance’s alleged crimes.
He was released from custody and returned to the United States shortly thereafter.
However, the EFCC continues to pursue cases against Binance for money laundering, tax evasion and foreign exchange manipulation.
In February, the Federal Government of Nigeria filed a lawsuit against Binance demanding $81.5 billion in back taxes and economic damages.
Nigerians Push Back, Defend Legal Sovereignty
Zhao’s claim of “kidnapping” raised the issue, sparking anger among Nigerians who said the remarks were disrespectful and misleading.
A Nigerian user on X he wrote“Nigeria has kidnapped no one.”
“Every sovereign nation has the right to enforce its laws and protect its economy.” Another added: “While the United States created Binance.US to comply with its own laws, Nigeria reserves the right to enforce compliance within its jurisdiction.”
Prominent Nigerian Web3 lawyer Tola Joseph Fadugbagbe issued a public letter to Zhao, encouraging him to retract his statement. “Your choice of words was not only misleading, but harmful,” Fadugbagbe said.
Some Nigerians accused CZ of double standards, pointing out that he himself was imprisoned in the United States after being guilty of anti-money laundering violations.
“When America arrests someone, it’s called justice,” wrote one user. “But when an African country imposes its own laws, does it suddenly become ‘kidnapping’?”
In particular, under Nigerian law, individuals or entities operating financial platforms must be licensed by the Securities and Exchange Commission (SEC) and comply with anti-money laundering regulations.
Violations are subject to criminal prosecution, fines or confiscation of assets under the Money Laundering (Prevention and Prohibition) Act and the Capital Markets Act.
