Six months after his arrest on disputed money laundering charges, former IRS crypto investigator Tigran Gambaryan remains detained in Nigeria, with concerns mounting over his declining health.
Experts suggest his detention is part of a broader effort by Nigeria to shift blame for its economic crisis and assert control over the cryptocurrency market, echoing past actions against foreign companies like Twitter and MTN. The case is now straining U.S.-Nigeria relations.
Gambaryan, who was once one of the IRS’s top cryptocurrency investigators, was arrested in February 2024 by Nigerian authorities on charges related to money laundering. Dina Temple-Raston, host of the Click Here podcast, noted the Gambaryan was being “held personally responsible for charges leveled against the company,” not the individual.
Binance CEO Richard Teng has been vocal in his defense of Gambaryan, asserting that “Tigran shouldn’t be used as a tool for unnecessary charges” and calling for his immediate release.
Gambaryan’s detention comes at a time of significant economic turmoil in Nigeria. The country is grappling with a deepening economic crisis, characterized by soaring inflation, widespread unemployment, and a currency in freefall, according to a BBC article. In recent months, the Nigerian naira has plummeted to record lows against the U.S. dollar.
In early August, Nigerian citizens took to the streets in “days of rage” protests, expressing their frustration with the government’s handling of the economy.
Some experts argue that the Nigerian government, under immense pressure to stabilize the economy, is using Binance as a convenient scapegoat for the naira’s crash. Nicholas Anthony, a policy analyst from the Cato Institute’s Center for Monetary and Financial Alternatives, wrote in an April 2024 commentary piece that Nigerian officials have blamed the cryptocurrency exchange for exacerbating the economic crisis, despite broader issues of mismanagement and policy failures. Gambaryan’s detention, many believe, is part of this broader strategy to deflect blame and assert control over the cryptocurrency market.
This is not the first time the Nigerian government has taken a hardline stance against a foreign company. In 2021, Nigeria suspended Platform X’s operations for seven months after the platform removed a tweet by President Muhammadu Buhari. The ban was eventually lifted in January 2022, but only after the platform agreed to meet several conditions, including registering as a legal entity in Nigeria, paying taxes, and complying with local laws. Critics viewed this as a form of economic extortion, leveraging the ban to extract financial and regulatory concessions from the social media giant.
There have been other similar high-profile cases involving foreign companies like MTN and Shell, where the Nigerian government has used regulatory measures to exert control over foreign businesses.
The conditions of Gambaryan’s detention have reportedly deteriorated significantly over the past six months. According to sources familiar with his case, Gambaryan is being held in squalid conditions without access to adequate medical care.
Matty Ice, host of the Runway podcast, said reports detail how Gambaryan “can’t walk, probably has malaria, and they won’t even give him medical care.” His wife, Lilit Gambaryan, has described the situation as a “living nightmare,” pleading for international intervention to secure her husband’s release.
Despite efforts by U.S. lawmakers, including a resolution introduced in the House of Representatives demanding Gambaryan’s release, his case remains stalled within the Nigerian legal system. A spokesperson for Rep. Rich McCormick (R-GA) noted that they are “still working very closely with the State Department” to secure Gambaryan’s release, but progress has been slow. Critics, including former Department of Justice official Andrew Adams, have called for the U.S. to cease sharing forfeited assets with Nigeria until Gambaryan is freed, arguing that his detention amounts to state-sanctioned hostage-taking.
The U.S. government’s response to Gambaryan’s detention has drawn criticism from various quarters. Bankless Ventures partner Ryan Sean Adams said videos from Gambaryan’s detention were “heartbreaking,” and lawmakers like Rep. French Hill (R-AR) have called for immediate action, emphasizing that “Tigran must immediately be granted a humanitarian release.”
Over 100 former federal agents and prosecutors have signed a letter to Secretary of State Antony Blinken, urging him to intervene. They describe Gambaryan’s captivity as “inhumane” and a clear violation of his rights as an American citizen.
