Legal authority constraint — exchange custody (2024)

Constrained

Case description

Nigerian authorities arrested two Binance executives in February 2024 and held them for months as part of a dispute over the naira's value and Binance's role in the crypto market. The Nigerian government accused Binance of facilitating capital flight. One executive, Tigran Gambaryan, was held in Nigeria for approximately eight months before being released in October 2024. During this period, Binance restricted access for Nigerian users significantly and suspended its P2P naira-to-crypto service. Nigerian Bitcoin holders who relied on Binance for naira conversion found their access constrained by a geopolitical custody dispute they had no part in.

Custody context

Stress condition	Legal or authority constraint
Custody system	Exchange custody
Outcome	Constrained
Documentation	Unknown
Year observed	2024
Country	Nigeria

Structural dependencies observed

Legal process requiredInstitutional cooperation required

What this illustrates

Before anyone could access the funds, a legal process had to be completed first. Whether full access was ultimately possible is unclear, but significant delay or outside intervention was involved.

Outcome interpretation

Access remained possible, but only with delay, dependence, or significant difficulty.

Source

Publicly Reported

Evidence type

News article

Evidence link

https://milkroad.com/bankruptcies/

Related cases involving legal or authority constraint

39 cases involve legal or authority constraint 512 cases involve exchange custody View archive statistics →

This archive documents observed custody survivability failures. It does not attempt to document all Bitcoin losses or security incidents. Submit a case

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Framework references

Where Bitcoin Custody Intersects Legal and Fiduciary Authority

Where custody creates gaps in estate planning, fiduciary duty, and professional responsibility.

Professional Scope Boundary Matrix

What each professional or product covers, what they do not, and where gaps form between them.

The Independent Assessment Layer in Bitcoin Custody

How independent diagnostic layers emerge when multiple parties depend on shared infrastructure.