Binance Executive Refutes CBN Claims of $26 Billion Leaving Nigeria

Tigran Gambaryan, Binance’s Head of Compliance, disputes the CBN’s claim of $26 billion leaving Nigeria via crypto trading, stating it refers to cumulative trade volume. He criticizes the Nigerian government for misattributing the naira’s devaluation to Binance rather than acknowledging their monetary policies. After regulatory scrutiny, Binance exited the Nigerian market in March 2024, amid rising tensions with authorities.

Tigran Gambaryan, Binance’s Head of Financial Crime Compliance, has challenged the Central Bank of Nigeria’s assertion that $26 billion left the country via the cryptocurrency exchange. He clarified that this figure represents cumulative trade volume rather than actual funds being transferred out of Nigeria. Gambaryan emphasized, “The $26bn figure they kept pushing publicly as some mystery money escaping Nigeria is complete ‘bullshit.’ This information was provided in response to their request and was simply cumulative trade data for Nigerians on the platform.”

He further explained that cumulative trading volume can be misleading, using an analogy to illustrate his point. For instance, executing $100 trades a hundred times results in a $10,000 trade volume, while only $100 was actually utilized. His remarks aimed to dismantle claims purported by the bank, which he deemed as an unacceptable misrepresentation of facts.

In February 2024, CBN Governor Olayemi Cardoso pointed to Binance as having conducted suspicious transactions approximating $26 billion from unknown sources. He raised concerns about potential illicit financial flows through such platforms in Nigeria, raising the alarm during a press briefing after a Monetary Policy Committee meeting.

Gambaryan criticized the Nigerian government for attributing the devaluation of the naira to Binance, pointing out that the currency’s depreciation was a consequence of President Tinubu’s monetary policies. While acknowledging that the policy decisions are debatable, he urged the authorities to recognize the real causes of economic challenges instead of scapegoating Binance.

Subsequently, Binance ceased its operations in Nigeria by March 2024 amid growing regulatory scrutiny and accusations regarding illicit activity linked to crypto exchanges. Gambaryan and a colleague were detained for eight months under serious accusations before being released and leaving Nigeria, which underscored the escalating tensions between the platform and regulatory entities.

In summary, Tigran Gambaryan has publicly contested the Central Bank of Nigeria’s claims about a substantial outflow of funds via Binance, asserting the miscommunication lay in how cumulative trading volumes were represented. His comments indicate a broader criticism of the Nigerian government’s approach to cryptocurrency regulation and economic issues, particularly surrounding the naira’s devaluation. Binance’s withdrawal from the Nigerian market highlights the challenges facing cryptocurrency operators in the region amidst scrutiny and accusations.

Original Source: punchng.com