Richard Teng, the CEO of Binance, has issued a statement to clarify the misunderstanding surrounding the cryptocurrency exchange platform’s financial activities in Nigeria. Contrary to reports that Binance generated $26 billion in revenue from the country in 2023, Teng emphasized that this figure is inaccurate and misleading. He clarified that Binance’s revenue primarily comes from charging a small percentage in transaction fees, not from the total transaction volume.
Clarification of Transaction Volume vs. Revenue
Teng pointed out that the $21.6 billion figure being circulated refers to the total transaction volume conducted on the platform in 2023, not revenue. He illustrated this by explaining that a transaction volume of $1 million could be generated by trading $1,000 a thousand times, underscoring that transaction volume does not equate to profit. Additionally, Teng noted that Nigeria has never been a major market for Binance, further dispelling the notion that the platform’s operations had a substantial impact on the country’s economy.
Ongoing Detention of Binance Executive Tigran Gambaryan
The clarification comes amid escalating tensions between Binance and the Nigerian government following the arrest and detention of two Binance executives earlier this year. In February, Tigran Gambaryan and Nadeem Anjarwalla were detained in Nigeria on charges of tax evasion and money laundering. While Anjarwalla reportedly managed to escape custody, Gambaryan remains in detention and has been repeatedly appearing in court.
Richard Teng has expressed deep concern over the treatment of Gambaryan, accusing the Nigerian government of denying him necessary medical care and access to legal counsel. He warned of the long-term physical and mental harm that Gambaryan is suffering due to the conditions of his detention. According to Teng, Gambaryan is currently in severe pain and unable to walk due to a herniated disc, yet he has been denied even basic medical necessities such as access to a wheelchair.
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“We are now at the six-month mark of Tigran Gambaryan’s unjust detention. Tigran’s physical and mental conditions have deteriorated rapidly, and his situation is now more dire than ever. He is in severe pain and unable to walk due to a herniated disc. Despite his condition, the Nigerian government has denied him adequate medical care, including basic needs such as access to a wheelchair,” Teng stated.
Appeal for International Intervention and Resolution
Richard Teng has called on the U.S. government and global advocacy groups to intervene in the situation, urging them to push for Gambaryan’s release. He argued that detaining an innocent employee is an unnecessary and harmful response to the allegations against Binance. Teng highlighted that Binance has successfully resolved regulatory issues with governments in countries like the U.S., Thailand, Brazil, and India without resorting to such extreme measures against its employees.
In a broader appeal, Teng expressed hope that once these issues are resolved, Binance could collaborate with the Nigerian government to advance the Web3 industry, which has the potential to create more opportunities within the country.
Emotional Appeal from Gambaryan’s Family
The situation has also taken a significant toll on Gambaryan’s family. His wife, Yuki, has made a public appeal for his release, highlighting the severe emotional and physical impact his detention has had on their family. In a heartfelt video plea, Yuki stressed the urgent need for medical treatment to prevent permanent damage to Gambaryan’s health, expressing fears that the ongoing detention could have lasting, irreversible consequences.
As the next hearing in Gambaryan’s case approaches on September 2, 2024, tensions remain high, with Binance and international observers closely watching how the situation will unfold.