Nigerian Lawmaker Sues Binance’s Compliance Head

The ongoing legal battles between Binance and Nigerian authorities have taken another turn, as Nigerian lawmaker Philip Agbese has filed a defamation lawsuit against Tigran Gambaryan, Binance’s Head of Financial Compliance. Agbese is demanding 1 billion naira (approximately $662,000) in damages, claiming that Gambaryan falsely implicated him in bribery and corruption. This lawsuit adds a new layer of complexity to the already strained relationship between Binance and Nigeria, as the cryptocurrency exchange faces mounting legal and regulatory challenges in the country.

Nigeria has become a major battleground for Binance in recent months, with authorities accusing the exchange of engaging in money laundering, tax evasion, and foreign exchange market manipulation. In early 2024, Nigerian regulators launched multiple investigations into Binance, alleging that the company facilitated illicit financial transactions that destabilized the country’s economy. The situation escalated in April 2024 when Gambaryan and another Binance executive were detained on allegations of laundering over $35 million. The detention of Gambaryan, a U.S. citizen and former IRS investigator, sparked international diplomatic pressure, with U.S. officials calling for his release. Despite Binance’s firm denials of any wrongdoing, tensions with Nigerian authorities have continued to rise.

The defamation lawsuit stems from alleged statements made by Gambaryan, in which he reportedly suggested that Nigerian lawmakers sought bribes from Binance. Agbese claims these accusations have damaged his reputation, falsely portraying him as a corrupt politician. In legal documents, he argues that Gambaryan’s statements were made “without evidence and with the intent to mislead the public.” The lawmaker insists that he has always acted in Nigeria’s best interest and has never engaged in corrupt practices. In addition to monetary compensation, Agbese is seeking a public apology from both Gambaryan and Binance. If the lawsuit is successful, it could set a precedent for further legal action against international crypto firms operating in Nigeria.

Binance has yet to issue an official statement regarding the lawsuit, but legal experts believe this case could further complicate its operations in Nigeria. The exchange is already under intense regulatory scrutiny worldwide, and an extended legal dispute in Africa’s largest economy could threaten its ability to continue serving Nigerian users. Nigeria, despite being one of the world’s largest markets for cryptocurrency adoption, has been tightening regulations on digital assets, making it increasingly difficult for exchanges to operate without full government approval. Some analysts argue that the Nigerian government is using Binance as a scapegoat for its ongoing economic struggles, while others believe Binance’s lack of transparency has made it an easy target for regulatory action.

The outcome of this lawsuit will have broader implications not only for Binance but for the entire cryptocurrency industry in Nigeria. If the court rules in favor of Agbese, Binance may face additional legal challenges from other government officials or regulatory bodies, potentially leading to even stricter oversight of the crypto sector. On the other hand, if Gambaryan and Binance successfully defend themselves against the allegations, it could raise further questions about the motivations behind Nigeria’s aggressive stance on cryptocurrency exchanges.

As Binance continues to navigate this legal storm, the case highlights the ongoing struggle between cryptocurrency firms and governments seeking to regulate them. With Nigeria emerging as a key battleground for the future of crypto regulations, the outcome of this lawsuit could shape how digital asset companies operate within the country for years to come.