Why Nigeria released American crypto executive after 8-month detention

Nigeria has released an American cryptocurrency executive held in the country for approximately eight months on money laundering charges. The West African authorities have announced they are dropping the charges.

Reports indicate the decision was made on health and diplomatic grounds. Tigran Gambaryan, Binance’s head of financial crime compliance, was freed on humanitarian grounds and is returning to the United States for medical treatment, White House national security adviser Jake Sullivan said in a statement Thursday.

“I am grateful to my Nigerian colleagues and partners for the productive discussions that have resulted in this step and look forward to working closely with them on the many areas of cooperation and collaboration critical to the bilateral partnership between our two countries,” Sullivan stated, adding that he had informed Gambaryan’s wife of the good news.

Gambaryan was initially arrested in February while on a business trip to Nigeria with Binance’s Africa regional manager, Nadeem Anjarwalla, who fled custody and remains at large. Nigerian authorities had accused Binance, the world’s largest cryptocurrency exchange, and Gambaryan of laundering up to $35 million and manipulating the naira currency, allegations they deny.

Nigeria, Africa’s largest crypto economy by trade volume, has seen significant growth in cryptocurrency usage, with many citizens using it as a hedge against inflation and the declining naira. As crypto adoption grew, the government—facing pressure to stabilize the local currency—alleged that the platform was being used to launder money and finance terrorism, leading Binance to suspend naira transactions.

On Wednesday, R.U. Adaba, a prosecuting lawyer with Nigeria’s Economic and Financial Crimes Commission, told the Federal High Court in Abuja that the government was closing the case for “critical international and diplomatic reasons.”

However, Binance still faces charges of suspected tax evasion and operating without the required license. Gambaryan’s trial has drawn controversy, including claims of illegal detention and passport seizures. Binance has also alleged that Nigerian officials demanded bribes for the release of Gambaryan and Anjarwalla, claims Nigerian officials deny.

Gambaryan’s health reportedly deteriorated during his prolonged detention, with his bail requests twice denied as he was deemed a flight risk. He was held at Kuje prison in Abuja as his court case unfolded.