Binance CEO Richard Teng Refutes $26 Billion Revenue Claim Amid Legal Battle with Nigerian Government

In a recent development that has caught the attention of the global financial and cryptocurrency communities alike, Binance, one of the world’s leading cryptocurrency exchanges, is embroiled in a legal tussle with the Nigerian government. The dispute centers around allegations of money laundering and tax evasion, with Binance’s operations in Nigeria under scrutiny. Richard Teng, the CEO of Binance, along with two other executives, Nadeem Arjarwalla and Tigran Gambaryan, are at the heart of this controversy. The case, which was initially set for an October 11 hearing, has been expedited to September 2, following a push from the defense team.

The Nigerian government has leveled serious accusations against Binance, asserting that the exchange amassed revenues totaling $25.5 billion from its Nigerian operations alone in 2023. Teng has vocally contested these claims, clarifying ahead of the September 2 hearing that the figures presented by the Nigerian authorities are grossly inflated. Teng outlined that Binance’s transaction volume in Nigeria for 2023 stood at $21.4 billion, a figure significantly lower than the revenues claimed by the Nigerian government. He further emphasized that the actual revenue, derived from a modest percentage of transaction fees, is substantially less, highlighting Binance’s commitment to maintaining some of the lowest fees in the cryptocurrency exchange industry.

Adding another layer to the controversy are the allegations suggesting Binance’s operations contributed to the depreciation of the Nigerian Naira. Teng refutes these claims, attributing the currency’s devaluation to broader macroeconomic factors beyond Binance’s control. He provided a detailed analysis of the Naira’s exchange rate fluctuations, noting a significant drop following the Nigerian government’s decision to end the currency peg in June 2023, which saw the Naira trading at a new low of USD1:1,645 by July 31, 2024, marking a nearly 49% decline since the beginning of the year.

A particularly distressing aspect of this legal battle is the detention of Tigran Gambaryan, Binance’s Head of Financial Crime Compliance. Gambaryan has been held in Nigeria since February, with Teng expressing grave concerns over his deteriorating health condition and the Nigerian authorities’ refusal to provide adequate medical care or legal representation. Despite the severity of Gambaryan’s medical condition, including a herniated disc that has left him in severe pain and impaired mobility, the Nigerian government has reportedly not complied with court orders for the release of his medical records or allowed him access to a U.S. consulate representative.

Teng’s appeals for Gambaryan’s release on humanitarian grounds have been accompanied by calls for the U.S. government to intervene, suggesting that Gambaryan be designated as one of its “unlawfully detained” citizens abroad. Furthermore, Teng has urged the international community to voice their concerns over Nigeria’s actions, warning of potential long-term detrimental effects on the country’s economic development and well-being.

This legal entanglement between Binance and the Nigerian government raises significant questions about the regulation of cryptocurrency exchanges, the protection of international executives operating in volatile markets, and the broader implications for the global cryptocurrency industry. As the September 2 hearing approaches, the international community watches closely, anticipating the potential ramifications of this case on international business operations and the evolving landscape of cryptocurrency regulation.