Binance CEO Richard Teng Refutes $26B Revenue Claim In Nigeria Lawsuit

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As a seasoned crypto investor with a keen interest in global markets, I find myself closely following the Binance vs. Nigeria lawsuit. Having dabbled in numerous digital currencies over the years, I can attest to the fact that the crypto market is dynamic and complex, much like the legal landscape it navigates.

Richard Teng, CEO of Binance, has made a strong counterargument against accusations made by the Nigerian government concerning their business activities within the country. The company and two of its top officials, Nadeem Arjarwalla and Tigran Gambaryan, have been indicted on charges related to money laundering and tax avoidance. The court case, which was originally set for October 11, has now been moved up to September 2 due to demands from the defense team.

Binance CEO Richard Teng Calls Out Nigerian Govt’s Misreporting

According to the Nigerian government, Binance generated approximately $26 billion in revenue within their country during the year 2023. However, Teng, a representative of Binance, refuted this allegation prior to the September 2nd hearing in the Binance vs. Nigeria lawsuit. He explained that the number provided by Nigerian authorities is misleading. In an official statement, Teng clarified, “Contrary to what the government has stated, we did not make $26 billion in revenue from Nigeria in 2023.”

In simpler terms, the CEO clarified that while the claimed revenue in Nigeria for 2023 was $21.6 billion, the actual transaction volume suggests it’s significantly lower. This implies that the real revenue generated must be much smaller. He added that Binance’s revenue primarily comes from a small fee on transactions, and they take pride in offering some of the lowest fees among global exchanges.

Teng Dismisses Claims Tied To Naira Devaluation

The accusations against the cryptocurrency exchange Binance additionally involve the idea that the company’s actions may have led to the weakening of the Nigerian Naira. However, Binance’s CEO, Teng, denies these allegations, stating instead that economic factors on a larger scale are responsible for the naira’s devaluation, not Binance’s activities. In response to claims made by the Nigerian government, Teng stated that there is no concrete evidence supporting the assertion that Binance was the cause of the currency’s decline.

Teng explained the fluctuations of the Naira’s exchange rate over time, highlighting that it largely stayed within a restricted band from 2021 until 2022. He specifically mentioned that the steepest decline happened following the Nigerian government’s decision to discontinue the Naira’s currency link in June 2023, which resulted in a substantial devaluation.

On July 31, 2024, the Naira hit a record low against the US dollar at approximately 1660 units per dollar, marking a 50% decrease from the beginning of the year as stated by Teng. He underscored that this depreciation persisted, even following the termination of its peer-to-peer (P2P) services within Nigeria in February 2024.

Tigran Gambaryan’s Health Worsens

The issue at hand centers around the ongoing detention of Tigran Gambaryan, who serves as Binance’s Head of Financial Crime Compliance. He has been in custody in Nigeria since February. The CEO of Binance, Changpeng Zhao, has shown great worry over Gambaryan’s declining health and the Nigerian government’s unwillingness to offer necessary medical attention or grant him the right to consult with legal advisors.

“Tigran’s health has worsened significantly, and his predicament is at a critical point. He’s experiencing intense pain and can no longer walk because of a herniated disc,” Teng disclosed. Moreover, the CEO criticized the Nigerian government for their reported non-compliance with court orders requesting Gambaryan’s medical records and denial of access to his U.S. consulate representative.

In simpler terms, Teng described these actions as “mysterious” and asked for Gambaryan’s release based on compassionate reasons. Essentially, Teng pleaded with the Nigerian government to grant him permission to return home to his family for the purpose of obtaining necessary medical care in the United States. This is what he advocated for.

In a public announcement, the head of Binance urged the United States administration to step in and recognize Gambaryan as an American citizen unjustly imprisoned abroad. Furthermore, he requested that the global community express their disapproval regarding the Nigerian government’s questionable conduct.

“He emphasized that it’s important for people worldwide to express their opinions and worries, as taking such independent actions by the Nigerian government, lacking a solid foundation, could negatively impact the nation’s future economic growth and overall welfare.”

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2024-08-27 14:44