Binews.com report:
Binance executive Tigran Gambaryan has been detained in a Nigerian prison for eight months before being released on Wednesday after the charges against him, an American citizen, were dropped in the country. Gambaryan’s family has confirmed that he has left Nigeria, and the two countries have established a task force to combine resources in combating cryptocurrency-related crimes.
In a statement, his wife Yuki Gambaryan said, “This day has finally come, and it brings me great relief.”
Decrypting:
“The past eight months have been a living nightmare. I wish he didn’t have to spend this long before being released, or that his health didn’t deteriorate too much, but now we can focus on our family’s recovery.”
Yuki Gambaryan also thanked the U.S. government and other supporters, adding, “Tigran’s road to recovery will be challenging, and I am grateful that we have the time and space to focus on this. Our children are eager to see their father again.”
Later on Wednesday, the U.S. Department of State announced that it has partnered with Nigeria to establish an illegal finance and cryptocurrency bilateral contact group to jointly combat cybercrime and illicit financial activities related to cryptocurrencies.
The official wrote, “The United States works with global partners to promote cyberspace and digital technology for economic prosperity while countering and addressing malicious cyber operations, cybercrime, and other digital harms.”
Announcement:
The statement reiterated the U.S.’s commitment to the Nigerian government and the Department of Justice (DOJ) in helping to establish its capacity for investigating and prosecuting cybercrimes. Nigeria is an ally of the United States, despite the strong criticism it faced for the detention of Gambaryan, including from members of Congress.
Gambaryan was arrested in February while negotiating cryptocurrency trading restrictions with Nigerian officials. Citing Gambaryan’s poor health, including malaria and herniated disc, Nigeria dropped all charges against him. However, Nigerian officials stated that they will continue to press charges against Binance itself.
Binance CEO Richard Teng said in a statement, “We are deeply relieved and grateful that Tigran Gambaryan has finally been released after nearly eight months of detention in Nigeria. During this challenging period, Tigran has shown tremendous strength, and we commend his resilience in such dire circumstances. We are incredibly grateful to everyone who has dedicated countless hours in supporting Tigran’s release.”
Gambaryan’s detention has drawn strong criticism from U.S. lawmakers, with Representatives French Hill and Chrissy Houlahan visiting Gambaryan in prison in June and expressing concerns about his deteriorating health.
The U.S. Department of State did not immediately respond to a request for comment from reporters.
The establishment of the bilateral contact group comes at a time of increasing global cryptocurrency crime. A recent FBI report found that 87% of all investment fraud in 2023 involved cryptocurrencies, with a total loss of $3.96 billion.
According to a report by cryptocurrency security company CertiK in the third quarter of 2024, despite a decrease in the number of hackers, cryptocurrency thieves managed to steal $750 million in the previous quarter. Phishing and private key leaks were predominant, with Ethereum being the primary target.
The surge in cryptocurrency-related crimes has put global regulatory bodies on high alert, and Nigeria is no exception. The cryptocurrency market in Nigeria is booming, with the Securities and Exchange Commission (SEC) valuing the local industry at $400 million as of June 2024.
However, this growth has prompted regulatory authorities to intensify their crackdown. In the same month, the Nigerian Securities and Exchange Commission ordered cryptocurrency exchanges and digital asset dealers to re-register within 30 days or face enforcement action. In August, the regulatory body issued the first batch of licenses to cryptocurrency exchanges and other industry companies.
