The Digital Chamber (TDC) stated that the Nigerian government's treatment of the crypto exchange Binance and the imprisonment of Binance employee Tigran Gambaryan could lead other companies to reconsider their operations in Nigeria. TDC shared its statement with Federal Newswire on August 15.
"To be successful long-term most businesses require stable, clear, and reliable legal, regulatory and enforcement activity—all the more so for a nascent industry like blockchain where the transfer of value is a key early use case," said Digital Chamber (TDC). "When a large international company like Binance is being held to a seemingly harsh standard of having one of its mid-level employees incarcerated for months on end when it seemed that they were operating in good faith to resolve outstanding issues, other firms that see this will certainly think about how, or if, they might operate in Nigeria."
According to WIRED, the Nigerian government invited Gambaryan to participate in compliance discussions in February. However, government officials detained Gambaryan and confiscated his passport. He has now been in Nigerian prison for months and faces criminal charges for financial crimes. Members of Congress, including Gambaryan's Congressman Rich McCormick (R-GA), are calling on the White House to increase pressure on the Nigerian government for Gambaryan's release. Prior to joining Binance, Gambaryan worked for the Internal Revenue Service (IRS) for more than ten years, where he investigated prominent cybercrimes such as Mt. Gox and AlphaBay.
Gambaryan's family said earlier this month that he is being "denied adequate access to his legal team and his health is deteriorating rapidly," CoinDesk reported. His family added that he hadn't been able to speak to his attorneys since July 26. Due to a herniated disc in his back, Gambaryan is now "mostly bedridden," and he had to be pushed into the courtroom in a wheelchair during his last court appearance on July 16. He has also suffered from pneumonia and multiple throat infections and now requires surgery for both his back and his throat. Nigeria's court is in recess, and Gambaryan's next hearing is scheduled for October 11.
Microsoft announced in June that it was ending its operations in Nigeria, according to a report from Medium. The report stated: "Microsoft's exit should serve as a wake-up call for Nigerian policymakers and stakeholders." It highlighted "the urgent need for a more conducive business environment, improved infrastructure, and supportive policies to attract and retain global tech giants." Microsoft said it would close its Lagos office by the end of June and terminate all local staff.
WhatsApp, which is owned by Meta, said earlier this month that it may leave Nigeria due to a $220 million fine that the Nigerian government levied against the company, Bitcoin.com reported. WhatsApp stated that the Nigerian government's order contains multiple inaccuracies, adding that it could not continue to operate in Nigeria if it must comply with the order.
TDC advocates for pro-innovation policies in the digital asset and blockchain industries, according to its website. Members of TDC include crypto exchanges, banks, consulting firms, and law firms.
