Andrew Adams, a partner at Steptoe & Johnson LLP, has called for the U.S. government to cease voluntarily sharing funds from investigations with Nigeria. This recommendation comes in response to what he describes as the Nigerian government's "arbitrary, lawless" prosecution of American citizen Tigran Gambaryan, a Binance employee and former U.S. federal agent. Adams shared his statement in a May 29 opinion regarding Gambaryan, who has been detained in Nigeria since February 26.
"As a discretionary program, the DOJ, Treasury and the State Department are all empowered to cease these transfers under the international sharing protocols," said Adams. "They should do so here, when the purpose of the program – to incentivize foreign partners to uphold the rule of law through cooperation with U.S. enforcement efforts – is frustrated through transparently arbitrary, lawless prosecutions. A decision and announcement to halt forfeiture transfers to Nigeria has the benefit of imposing a direct cost on the Nigerian authorities and legal apparatus that is directly implicated by the Binance affair. The withholding of shared funding requires no intermediaries or multilateral coalition to make that U.S. policy decision an effective deterrent – no banks or foreign partners are required to amplify this policy, as would be the case with a formal sanctions designation against particular individuals or institutions in Nigeria."
According to a post on Binance's website, Gambaryan traveled to Nigeria for policy discussions in February at the invitation of Nigerian government officials. Nigerian authorities accused Binance of manipulating the naira's exchange rate and detained Gambaryan on February 26, preventing him from leaving the country. His phone and passport were confiscated, and he now faces criminal charges.
The law firm handling Gambaryan's case, Aluko & Oyebode, expressed concerns about his health in a letter addressed to the deputy chief registrar of the Federal High Court. The People's Gazette reported that the firm is worried Gambaryan may die in Kuje Correctional Facility and stated that he needs "comprehensive medical attention at the best available hospital." He is suspected of having malaria and collapsed in court in May due to deteriorating health.
Adams, a former Department of Justice (DOJ) official, said the Nigerian government detained Gambaryan and another Binance employee in February "without notice or a public announcement of charges." Weeks later, both employees were charged with tax and money laundering-related offenses that are "entirely divorced from the personal conduct of either man." Adams criticized the U.S. government's response to Gambaryan's detention as "lacking," but acknowledged that official responses are "complex" due to various implications. However, he suggested that ceasing the transfer of forfeited funds to Nigeria through the DOJ's international sharing program could be an effective measure. This approach would allow the U.S. government to express its "objection to Nigeria’s abuse of its police power" while withholding funds that might otherwise support those authorities involved in such actions. In 2020, more than $310 million was transferred to Nigeria through this program.
For ten years, Gambaryan served as a U.S. federal agent investigating cases related to national security, terrorism financing, identity theft, distribution of child pornography, tax evasion, and bank secrecy act violations. According to Binance's website, he was hired by Binance in 2021 to address historical compliance issues. In 2022 and 2023, his team assisted global law enforcement agencies in freezing and seizing over $2.2 billion worth of assets.
Adams' practice areas include anti-money laundering compliance, U.S. economic countermeasures, and national security crisis response, according to Steptoe's website. He previously served as inaugural Director of the DOJ's Task Force KleptoCapture and as acting Deputy Assistant Attorney General for the National Security Division of the DOJ. Additionally, he was co-chief of the U.S. Attorney's Office for the Southern District of New York's Money Laundering and Transnational Criminal Enterprises Unit.
