Binance exec Tigran Gambaryan finally released from Nigerian prison

Tigran Gambaryan, Binance’s financial crime compliance head, has finally been released from a Nigerian prison after spending eight months behind bars.

On Wednesday, the government dropped the money laundering case against him. This decision was confirmed by the lawyer representing Nigeria’s Economic and Financial Crimes Commission (EFCC), Justice Emeka Nwite.

Gambaryan was arrested in Nigeria’s capital, Abuja, along with his colleague Nadeem Anjarwalla. While in jail, he faced serious health issues while in custody, including a back injury and malaria. Last week, he was too ill to attend his court hearing.

Throughout these months, Binance and Gambaryan’s family had been pleading with Nigerian authorities to drop the charges, calling the case a sham.

Binance in Nigeria’s crypto storm

Nigeria has become a hotbed for crypto adoption, with millions turning to stablecoins as the naira crumbles. The country’s economic situation is horrific, to say the least.

So far in 2024, the naira lost about 70% of its value against the U.S. dollar, sinking to 1,717 naira per dollar by mid-October. Inflation in the country soared to over 30%, pushing everyday Nigerians to look for alternatives. That’s where crypto comes in.

Between July 2023 and June 2024, Nigeria saw $59 billion worth of crypto transactions, ranking second globally for crypto adoption.

Nigerians use crypto for everything now. Over 85% of those transactions involved small amounts under $1 million — this isn’t just big investors, it’s regular folks trying to survive. Stablecoins have become a lifeline. 

In the first quarter, $3 billion in stablecoins had been used for day-to-day transactions like paying bills and buying groceries.

This kind of crypto explosion caught the government’s attention, and that’s when Binance got into trouble. The Nigerian government accused Binance of contributing to the naira’s collapse by enabling untraceable transactions.

Authorities claimed that $26 billion flowed through Binance from unknown sources, which led to a $10 billion penalty.

Crypto has also become a way to fight back. During the EndSARS protests in 2020, which were against police brutality, activists turned to crypto to fund their efforts when the government froze traditional bank accounts.

The decentralized nature of crypto made it impossible for the authorities to block donations, and that helped sponsor the movement.

But the Financial Intelligence Unit has reported an increase in the use of crypto for money laundering and other illegal activities.