Binance vs Nigeria: A timeline of events as they unfold

The clash between Binance, the world’s largest cryptocurrency exchange, and Nigerian authorities has become a focal point in the ongoing debate over cryptocurrency regulation in Africa’s fourth-largest economy. What began as concerns over currency manipulation has escalated into a full-blown legal battle, with far-reaching implications for the crypto industry in Nigeria and potentially across the continent.

As Nigeria grapples with economic challenges and seeks to assert control over its financial markets, the Binance controversy highlights the complex interplay between innovation, regulation, and national economic interests in the rapidly evolving world of digital assets.

This timeline tracks the key events in the unfolding saga, from the initial regulatory rumblings to the latest developments in the court case.

Feb. 20 

• On February 20, several of Binance’s Nigerian users took to social media to complain of difficulties on the exchange’s peer-to-peer (P2P) platform. These users could not trade the United States dollar-pegged stablecoin, USDT for naira. Unknown to most, this was merely a sign of more woes for Binance in Nigeria.
• In what looked like a move to prevent customers from on-ramping the naira, Binance placed restrictions on purchasing USDT using the naira on its P2P platform. 
• Binance’s P2P marketplace — which serves mainly as an escrow for holding funds on behalf of two participants in a trade — disabled the “Buy” option and took down several ads suggesting the same. 
• It also put a N1802/USD peg on USDT-naira trades for traders looking to sell their USDT.

Feb. 21 

• Binance reversed the trade restrictions it had put in place the day before and allowed trade to continue, albeit briefly. 
• In a press release, the exchange claimed the restrictions resulted from its algorithm built to prevent fraud in cases of significant funds movement.

Feb. 22 

• Nigerian authorities reportedly directed telecommunications service providers to restrict access to notable crypto exchanges, including Binance, Coinbase and Kraken.
• The Financial Times cited unnamed sources familiar with the development, saying the ban was implemented because decision-makers believed that currency speculators and money launderers used these exchanges to manipulate foreign exchange rates.
• Binance confirmed in an email to its users that its platform alongside others was indeed down in Nigeria and added that it was in contact with Nigerian regulators and policymakers.

Feb. 26

• In furtherance of its engagement with the Nigerian government, two Binance officials — African regional director Nadeem Anjarwalla and head of financial crime compliance Tigran Gambaryan — flew into the country.
• After an initial meeting with Nigerian officials, both were detained at a guest house in the Nigerian capital city of Abuja. 
• The Office of the National Security Adviser (ONSA) also confirmed an inter-agency investigation into Binance. 
• Another top government official, Bayo Onanuga, confirming the arrests, said that both employees of Binance had been fully cooperative in giving information to the Nigerian government. 
• Onanuga added that the Nigerian government wants Binance to pay up to $10 billion in reparations and damages for sabotaging the Nigerian economy.

Telling quote

“This country recorded massive losses from their operations [because] they allowed people to ... fix the exchange rate arbitrarily. The government is asking them to pay us close to $10 billion in retribution because they messed up our economy in a short time,” Onanuga said.

Mar. 5 

• Binance announced it would discontinue all Nigerian naira (NGN) services on its platform. It disabled naira deposits and withdrawals. 
• In addition, it also delisted all spot trading pairs involving the naira and gave its users three days to withdraw their naira balances or have them automatically converted to USDT.

Mar. 18 

• Nigerian anti-corruption agency, the Economic and Financial Crimes Commission (EFCC) secured a court order mandating Binance to share information on Nigerians who have transacted on its platform. 
• The EFCC said the move was necessary because it received intelligence that Binance’s Nigerian users were using the platform for money laundering and terrorism financing. 
• In addition, the inter-agency committee set up by the ONSA to investigate Binance claimed that Nigerians also used the platform to manipulate foreign exchange rates for arbitrage purposes, causing the naira to fall drastically.

Mar. 19 

• Nadeem Anjarwalla, one of the detainees, escaped from the guest house where he and Gambaryan were held. 
• Per reports, he was led by the guards to a nearby mosque for Ramadan prayers, from where he managed to escape and get on a flight out of Nigeria using his Kenyan passport.

Mar. 22 

• The Federal Inland Revenue Service (FIRS) initiated criminal proceedings against Binance before a Federal High Court in Abuja. 
• The Nigerian taxman alleged the exchange of failing to register with and refusing to pay taxes as mandated by Nigerian law.

April 8 

• In another suit, the EFCC also dragged Gambaryan to court on additional charges of money laundering, currency speculation and tax evasion to the tune of $34 million. 
• Gambaryan had pleaded in an earlier court appointment that he should not be served with charges on behalf of Binance, a plea the judge refused to honor. 
• The judge ordered that Gambaryan be transferred to a Nigerian prison, the Kuje Correctional Center in Abuja.

May 7 

• Binance’s CEO Richard Teng reacted to his company’s woes in Nigeria for the first time publicly.  
• He complained about the continued detention of Gambaryan despite his organization’s cooperation with investigations and earlier assurances that no harm would come to the company’s officials. 
• In a blog post, he mentioned that the Nigerian government had promised safe passage to the two executives when invited into the country in February. 
• Teng further claimed that the Nigerian government, via an unnamed proxy, asked the exchange to pay $150 million worth of crypto in a backdoor deal to ‘make the problems go away.’  
• According to Teng, the company perceived this as a request for a bribe and refused to accept the underhanded deal. 

May 9 

• A spokesman for the Nigerian Ministry of Information, Rabiu Ibrahim, denied allegations of bribery leveled against the Nigerian government by Teng. 
• Instead, he labeled them as false and nothing but a diversionary tactic. 

“The phantom bribe claim is part of an orchestrated international campaign by this company that is facing criminal prosecution in many countries, including the US, to undermine the Nigerian government. It will not clear its name in Nigeria by resorting to fictional claims and mudslinging media campaigns,” Ibrahim said.

June 4 

• Twelve United States lawmakers petitioned the president of the US, Joe Biden, to secure Gambaryan’s release from Nigeria, where he has been held for more than three months. 
•  The US lawmakers argued that the charges leveled against Gambaryan were baseless and the Nigerian government’s refusal to release him was only a ploy to control and extort Binance. 
• In response, Nigeria’s Minister of Information, Mohammed Idris, said the country had followed due process in its prosecution of Binance. 
• He further claimed that Binance’s operation in Nigeria fetched it $20 billion in 2023 alone. 

June 14

• The FIRS dropped the charges it brought against Gambaryan and Anjarwalla and agreed to serve Binance solely through its local representative. 
• This made Binance the sole defendant and freed Gambaryan from appearing in court on behalf of the exchange during future proceedings in the case brought against Binance by the FIRS.

June 24 

• The Blockchain Industry Coordinating Committee of Nigeria (BICCoN) warned that the protracted legal tussle between the Nigerian government and Binance could have lasting effects on the blockchain industry in the country. 
• In a press statement, BICCoN said startups in the country have already begun to see a decline in foreign investment because they fear standoffs like this could endanger their investment. 
• BICCoN said: 

“The protracted regulatory issues involving Binance have had significant implications for the industry ... These events have led to a chilling effect on investment, with a notable decline in foreign investments and collaborations with Nigerian web3 startups.” 

• Instead, it advised the Nigerian government to adopt a balanced approach by giving Binance a fair trial and working to reassure foreign investors that the country is not trying to stifle innovation. 

July 2 

• Justice Nwite of the Federal High Court in Abuja again ordered the Kuje Correctional Center to release the medical records of Gambaryan’s visit to the hospital. 
• The embattled US citizen, who has been unwell for several weeks, has only been allowed to visit the hospital once while his health deteriorates, a statement shared with Mariblock by Gambaryan’s representatives claims. 
• On the same day, the court concluded the examination of the first witness in the EFCC’s case against Binance and Gambaryan and adjourned the trial till July 5.

July 5

• A deputy director at the CBN, Olubukola Akinwumi, testified in court that Binance's Nigerian users transact with fictitious names and pseudonyms to hide their identities.
• He added that services related to the withdrawal and deposit of naira “is a regulated activity carried out by banks and other financial institutions duly registered by CBN,” and Binance does not have a license to do that.
• Akinwumi explained that users being able to deposit and withdraw Nigerian Naira (NGN) on the platform, an activity typically regulated by the CBN, contravenes the CBN's laws.
• He said;

"Binance provides a trading platform where users trade virtual assets. And to consummate their transactions for the purpose of settlement of payments, the users make use of the payment system for the purpose of transferring or making payments to one another. These traders normally trade in pseudo-names (pseudonyms) that hide their identities and they are not authorized by the CBN."

July 10

• United States lawmakers introduced a resolution calling for the release of Gambaryan, marking a significant escalation in the hostilities between Binance and the government of Nigeria.
• Representatives Patrick McHenry and French Hill submitted House Resolution 1348, urging the Nigerian government to free Gambaryan and pressing the U.S. government to formally declare him as "wrongfully detained."
• The resolution detailed Gambaryan's deteriorating health conditions and alleged violations of due process.
• It also called for Nigeria to provide full consular access and unrestricted medical care to Gambaryan while he remained in custody.

Aug. 22

• Gambaryan's representatives alleged that Nigerian authorities have not granted access to his legal team since July 26 as his health continued to deteriorate in prison.
• Per a press release shared with Mariblock, the legal team has not even been allowed to enter the prison. 
• In addition, despite a court order, Nigerian officials have still not released his medical records to his lawyers.
• His wife, Yuki, continues to appeal to the Nigerian government for his release so he can get adequate medical treatment.

Telling quote

The press release read:

"Since the court in Abuja went on holiday on July 16th ... Tigran’s detention conditions have significantly worsened. Since July 26th, his legal team has been blocked from entering Kuje prison to meet with him"

Aug. 26

• Binance released a statement commemorating the six-month mark of Gambaryan's detention.
• The exchange alleged that Nigerian officials are still refusing to share the detainee's medical records despite a court order to do so.
• In addition, Binance claimed the Nigerian government was holding Gamabaryan on baseless charges.
• It isolated itself from Nigeria’s currency issues, naming the removal of the currency peg as the chief cause of the naira’s steep decline.  
• Contrary to comments by government authorities, Nigeria has never been a big market for Binance, the company said. 
• Governor Olayemi Cardoso of the Central Bank of Nigeria (CBN) had claimed that Binance made $26 billion from Nigeria in 2023.
• The company disputed this, stating its total transaction volume was $21.6 billion, with only a small percentage as profit from transaction fees.
• It said;

"Nigeria has never been a big market for Binance.  The Government has said that we made $26 billion in revenue from Nigeria in 2023.  That is not the case. The $21.6 billion figure is the total transaction volume from 2023. 

To provide an understanding of transaction volume: if a person were to take $1000 and trade it 1000 times, that would represent $1m in transaction volume. Our actual revenue is based on charging a small percentage [as] transaction fee."

Aug. 26

• On the same day, Gambaryan's representatives also released a statement claiming the 40-year-old is no longer able to walk due to a herniated disc.  
• In addition, his lawyers have only been allowed 15 minutes with him since July 26 and are subsequently unable to prepare him for trial.
• They informed Mariblock that an application by Gambaryan’s lawyers to have his case heard during the Nigerian court’s ongoing recess was granted, and his next hearing date has been brought forward to September 2.

Sept. 2

• An application for bail on medical grounds by Gambaryan's lawyers was opposed by the EFCC's counsel on the grounds that he was not ill and had also refused to be treated.
• The judgment on the bail application was subsequently postponed till October 9.
• Gambaryan’s representatives told Mariblock that the US citizen, now unable to walk, was denied the use of a wheelchair and was instead forced to use crutches to appear in court.
• In a now-viral video on social media, Gambaryan is seen struggling to walk as he seeks assistance from a prison officer assigned to escort him.
• He is seen using crutches, loudly lamenting being forced to move without proper aid, while prison officials, reportedly instructed not to assist him, look on.
• In the video shared on the social media platform, X, a visibly distressed Gambaryan is heard saying; 

“[The prison official] was told not to help me. These were the instructions of the government ... Why can’t I use a wheelchair? I am an innocent person ... and I can’t walk.” 

Sept. 13

• Sept. 12 makes it exactly 200 days Gambaryan has been in detention in Nigeria.
• His wife Yuki said in a statement:

“Two hundred days ago, my husband, an innocent American citizen, traveled to Nigeria for a meeting he was invited to by the Nigerian government. Since then, he has been unlawfully detained under increasingly inhumane and degrading conditions. He has been repeatedly denied access to his lawyers which is against the Nigerian constitution. I beg President Tinubu to do the right thing and order Tigran’s immediate and unconditional release. And I beg the U.S. Government to recognize officially that Tigran is being unlawfully detained and to take immediate actions against the Nigerian government unless they release him.”