US lawmakers have accused Nigeria of holding Binance's executive hostage and called for President Joe Biden to intervene and secure the executive's release, Bloomberg reported.

In a recent letter, sixteen Republican congressmen, led by Michael McCaul, Chairman of the House Foreign Affairs Committee, urged President Biden to address the detention of Tigran Gambaryan, a US citizen and the Head of Financial Crime Compliance at Binance. Gambaryan has been held in a Nigerian prison since April, following his detention during a trip to discuss Binance’s compliance issues with Nigerian authorities.

Lawmakers' Allegations and Nigerian Response

The congressmen termed the charges against the detained executive baseless and a coercion tactic by the Nigerian government to extort Binance. They argue that Gambaryan’s detention qualifies him as a US citizen wrongfully detained by a foreign government.

Nigerian Information Minister Mohammed Idris reportedly refuted these claims, saying that Gambaryan's detention complies with Nigerian law. Idris emphasized that the charges against Gambaryan include non-payment of taxes and aiding tax evasion through Binance’s platform.

The confrontation began in February when Gambaryan and a colleague were detained during a visit to Nigeria. The meetings, initially professional, grew hostile, culminating in Gambaryan’s arrest. While his colleague managed to escape, Gambaryan was held at a guest house before formal charges were brought against him in April.

Gambaryan faces charges alongside Binance for allegedly aiding customers in evading taxes and failing to pay value-added and corporate income taxes. He is currently held in Kuje Correctional Center, a high-security prison in Abuja. Concerns about his health have been raised after his court appearance was postponed due to illness.

Broader Implications and Binance’s Legal Troubles

The detention of Gambaryan comes amid broader tensions between Binance and Nigerian authorities. The country had previously blocked access to cryptocurrency channels, blaming them for exacerbating the naira’s devaluation.

Binance’s challenges extend beyond Nigeria. In the US, the firm’s founder, Changpeng Zhao, was sentenced to four months in prison for compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term failures. Additionally, Binance agreed to a $4.3 billion settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term in November to resolve US allegations of facilitating cybercrime and terrorism.

Last month, a Nigerian court issued a ruling paving the way for Binance’s executive Tigran Gambaryan to stand trial on behalf of the cryptocurrency exchange in the ongoing tax evasion case. Gambaryan and the Regional Manager for Africa, Nadeem Anjarwalla, face four counts of tax evasion. Additionally, they have been accused of laundering over $35 million and engaging in specialized financial activities without a license.