Binance Executive Refutes CBN Claims of $26 Billion Outflow from Nigeria

Tigran Gambaryan, Binance’s Head of Financial Crime Compliance, has refuted the CBN’s claims of a $26 billion outflow via Binance, clarifying it pertains to trading volume. Governor Olayemi Cardoso originally linked this figure to suspicious transactions. Gambaryan criticized the authorities for wrongly blaming Binance for economic issues, particularly the devaluation of the naira, and discussed his recent arrest during regulatory scrutiny.

Tigran Gambaryan, the Head of Financial Crime Compliance at Binance, has rejected claims made by the Central Bank of Nigeria (CBN) regarding an outflow of $26 billion from Nigeria via the cryptocurrency exchange. In a recent statement, Gambaryan emphasized that the reported figure was misleading, as it actually represented a cumulative trading volume rather than actual funds leaving the nation.

The CBN originally stated during a February 2024 press conference that Binance Nigeria facilitated suspicious financial flows of $26 billion. CBN Governor Olayemi Cardoso highlighted concerns over illicit transactions linked to unidentified sources. Gambaryan, however, countered that this figure did not reflect money escaping Nigeria but rather the number of trades conducted by users.

He provided an analogy to clarify this point, stating that a frequent trading pattern does not equate to the total amount of money moved. For instance, a user trading $100 repeatedly would reflect a trade volume of $10,000 without the total funds ever leaving Nigeria. Gambaryan asserted that this misrepresentation was an attempt by the CBN to justify its investigative actions.

The Binance executive further criticized Nigerian authorities for using Binance as a scapegoat for the nation’s economic woes, specifically referencing the devaluation of the naira. He indicated that the naira’s decline was predominantly a result of the monetary policy implemented by President Tinubu, which altered the naira’s pegging to the dollar. This policy was widely recognized to lead to significant devaluation.

Following regulatory scrutiny and allegations of illicit transactions, Binance exited the Nigerian market in March 2024. Gambaryan, alongside his colleague Nadeem Anjarwalla, was arrested during February 2024 during discussions with Nigerian officials about Binance operations. Both faced charges relating to money laundering and tax evasion, which were later dismissed, allowing them to leave Nigeria in October 2024.

In summary, Tigran Gambaryan has disputed the CBN’s claims regarding the outflow of $26 billion attributed to Binance, clarifying that this figure reflects cumulative trading activity, not actual financial outflows. He has also pointed to broader economic policies as contributors to Nigeria’s financial challenges, suggesting that Binance has been wrongfully scapegoated. Furthermore, his arrest in Nigeria raises questions about regulatory practices surrounding cryptocurrency exchanges in the region.

Original Source: punchng.com