Key Insights:
- Binance’s Richard Teng refutes Nigeria’s $26B revenue claim, clarifying actual transaction volume at $21.6B in 2023.
- Teng disputes allegations that Binance contributed to the Nigerian naira’s depreciation, citing broader economic factors.
- Binance appeals for humanitarian release of executive Tigran Gambaryan, raising concerns over his deteriorating health in detention.
Binance CEO Richard Teng has challenged the Nigerian government’s claims that the cryptocurrency exchange earned $26 billion in revenue from the country in 2023. The Nigerian government’s allegations are part of a larger lawsuit accusing Binance and two of its executives of money laundering and tax evasion. The case, initially set for hearing on October 11, was rescheduled for September 2 following a defense request.
Teng responded to the claims by rejecting the Nigerian government’s figures, describing them as inaccurate. In an official statement, Teng clarified that Binance’s total transaction volume in Nigeria for 2023 amounted to $21.6 billion. He explained that this figure is not equivalent to the company’s revenue and further emphasized that Binance charges relatively low transaction fees, which means its actual revenue from Nigeria would be much smaller than suggested.
To provide context, Teng illustrated how transaction volume is calculated, explaining that trading activity could inflate the overall transaction volume without reflecting equivalent revenue. He reiterated that Binance’s revenue model is based on charging a small percentage of transaction fees and that the $26 billion figure claimed by the Nigerian authorities does not reflect Binance’s actual earnings in the region.
Nigerian Naira’s Decline Blamed on Broader Economic Factors
Another point of contention in the lawsuit is the Nigerian government’s accusation that Binance’s operations contributed to the depreciation of the Nigerian naira. Teng disputed this assertion, attributing the currency’s decline to broader macroeconomic factors unrelated to Binance’s activities.
Teng pointed out that the naira had traded within a relatively stable range between 2021 and 2022. He also explained that the sharp depreciation occurred after the Nigerian government lifted the naira’s currency peg in June 2023, which led to a steep drop in the currency’s value. By July 2024, the naira had fallen to a low of USD1:1,660, representing a 50% decline since the beginning of the year.
Teng emphasized that Binance had ceased offering its peer-to-peer (P2P) services in Nigeria in February 2024, which further weakened the claim that the exchange was responsible for the currency’s decline. He stated that the depreciation of the naira continued even after Binance withdrew its P2P services, highlighting that the exchange’s operations were not a driving factor behind the currency’s downturn.
Concerns Over Detained Executive’s Health
A key element of the legal battle involves the detention of Binance’s Head of Financial Crime Compliance, Tigran Gambaryan. Gambaryan has been held in Nigeria since February, and concerns over his health have grown as his physical and mental conditions reportedly deteriorate. According to Teng, Gambaryan suffers from a herniated disc and is now in severe pain, unable to walk due to his medical condition.
Teng has raised concerns over the Nigerian government’s treatment of Gambaryan, claiming that they have not provided adequate medical care and have denied him access to legal counsel. Teng also alleged that the Nigerian authorities have failed to comply with court orders that demand the release of Gambaryan’s medical records and that they have restricted his ability to meet with a representative from the U.S. consulate.
Teng appealed for Gambaryan’s release on humanitarian grounds, urging the Nigerian government to allow him to return to the United States for necessary medical treatment. He also called on the U.S. government to take action and designate Gambaryan as unlawfully detained, while urging the international community to raise their concerns over the situation.
Calls for U.S. Government Intervention
Teng’s public statement also included an appeal to the U.S. government to intervene on behalf of Gambaryan, classifying his detention as unjust and urging for his release. The Binance CEO expressed his hope that Gambaryan would be recognized as unlawfully detained, which would involve the U.S. government taking further steps to secure his release.
Teng encouraged global stakeholders to pressure the Nigerian government, arguing that such unilateral actions could have broader consequences for the country’s economic development and international reputation. The Binance CEO urged the international community to consider the long-term effects of detaining foreign citizens without clear justification, framing Gambaryan’s detention as an issue of concern for the global community.
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