Binance co-founder Changpeng Zhao has accused Nigerian authorities of unlawfully detaining former executive Tigran Gambaryan for eight months in 2024, describing the arrest as “kidnapping” and alleging extortion attempts linked to a $50 million demand from U.S. officials.

The Nigerian government has rejected the claims, calling the detention a lawful response to financial misconduct.

Zhao reignited the controversy last week in a blog post, referring to Gambaryan’s March 2024 arrest in Abuja as a “hostage situation.” Gambaryan, a U.S. citizen and Binance’s former head of sanctions compliance, was held on charges of money laundering and operating without a license. He was released in July 2024 on humanitarian grounds after charges were dropped.

In a Wall Street Journal op-ed, Gambaryan alleged that Nigerian officials pressured the U.S. government for $50 million in fines to secure his release. The Economic and Financial Crimes Commission (EFCC) dismissed the allegation as “baseless fabrications,” describing Gambaryan as a “guilty party” attempting to deflect scrutiny.

Information Minister Mohammed Idris defended the government’s actions, citing Binance’s alleged violations of foreign exchange regulations during a period of naira instability. He said EFCC investigations uncovered $2.3 billion in untraceable transactions. “This was no kidnapping; it was accountability for economic sabotage,” Idris stated, noting that while some charges were dropped, other investigations remain active.

U.S. Secretary of State Marco Rubio welcomed Gambaryan’s release but did not comment on the extortion claims. Washington has focused instead on broader cryptocurrency regulation and compliance.

The timing of Zhao’s statement coincided with President Donald Trump’s October 31 warning of potential aid cuts or military action against Nigeria over alleged Christian persecution. Zhao linked the two issues on social media, tweeting: “When a nation detains executives on false charges while ignoring real threats, it invites global scrutiny.”

Public reaction has been divided. Crypto advocates criticized Nigeria’s regulatory posture as hostile, while EFCC officials warned against foreign interference. Binance suspended naira services in 2024 citing harassment but resumed limited operations after Gambaryan’s release.

Gambaryan has filed a $150 million lawsuit against Nigeria in U.S. courts, seeking damages for unlawful detention. Nigerian officials have pledged to defend the case, calling the claims defamatory.