Andrew Adams, a partner at the New York office of Steptoe & Johnson LLP and a former acting Deputy Assistant Attorney General for the National Security Division of the Department of Justice (DOJ), has called for the US government to halt sharing forfeited property with Nigeria. This statement comes in response to the detention of Tigran Gambaryan, a former US federal agent and current Binance employee, who has been "wrongfully detained" in Nigeria since February 26. Adams shared his views in a May 29 opinion piece titled "The U.S. Response to Binance Exec Tigran Gambaryan's Detention Is Shameful."
"A decision and announcement to halt forfeiture transfers to Nigeria has the benefit of imposing a direct cost on the Nigerian authorities and legal apparatus that is directly implicated by the Binance affair," said Adams. "The withholding of shared funding requires no intermediaries or multilateral coalition to make that U.S. policy decision an effective deterrent – no banks or foreign partners are required to amplify this policy, as would be the case with a formal sanctions designation against particular individuals or institutions in Nigeria. The discretionary aspect of the program also provides for negotiating space and diplomatic flexibility. Unlike standard economic sanctions programs, there is no need for a politically charged “rollback” of an announced designation – U.S. agencies would simply be poised to resume cooperative sharing based on a straightforward, tangible change in Nigeria's behavior, namely the release and exoneration of a wrongfully detained American citizen."
According to Adams, the Nigerian government detained Gambaryan and another Binance employee in February "without notice or a public announcement of charges." Weeks later, both employees were charged with tax and money laundering-related offenses that are "entirely divorced from the personal conduct of either man." Adams noted that Gambaryan, a former IRS criminal investigator, has spent his career combatting such offenses.
Adams criticized the public response from the US government to Gambaryan's detention as "lacking," but acknowledged that official responses are "complex" due to various implications. For instance, if the US publicly stated that Nigeria has "wrongfully detained" a US citizen, federal statutes and regulations would suggest issuing sanctions. However, Adams pointed out that sanctions could be ineffective or restrict negotiating space. He proposed ceasing the transfer of forfeited funds to Nigeria through the DOJ's international sharing program as an alternative measure. This approach would allow the US government to express its "objection to Nigeria’s abuse of its police power" while withholding funds that might otherwise support those authorities.
The forfeited funds result from international collaboration between the US and other nations on investigations related to cybersecurity, anti-terrorism, and cross-border money laundering. The discretionary sharing of these funds fosters international cooperation. In 2020, more than $310 million was transferred by the DOJ to Nigeria through this program. "This should stop," Adams said.
CoinGape reported that Gambaryan collapsed during recent court proceedings and is now reportedly suffering from malaria and a throat infection. Justice Emeka Nwite ordered for Gambaryan to be moved from Kuje Prison to a hospital for treatment; however, he has not been moved yet. Yuki, Gambaryan's wife, expressed her distress: she is "devastated and shocked that despite the court’s clear directive for his admission to a hospital, the authorities have not allowed him to leave the very prison causing his illness."
Adams' practice area includes anti-money laundering compliance, US economic countermeasures, and national security crisis response. He previously served as inaugural Director of the DOJ's Task Force KleptoCapture and as acting Deputy Assistant Attorney General for the National Security Division of the DOJ. He was also co-chief of the US Attorney's Office for the Southern District of New York's Money Laundering and Transnational Criminal Enterprises Unit.
