An executive of cryptocurrency platform, Binance Nadeem Anjarwalla, being held by Nigeria government has escaped from custody, according to the Office of the National Security Adviser (NSA). He is a suspect in the Federal Government’s ongoing probe into Binance activities in Nigeria. But he escaped from custody on Friday, the NSA office said in a Monday statement by its spokesman Zakari Mijinyawa. “The Office of the National Security Adviser confirms that Nadeem Anjarwalla, a suspect in the ongoing criminal probe into the activities of Binance in Nigeria has escaped from lawful custody on Friday, 22 March 2024,” the NSA Office said.
Meanwhile the federal government has filed tax evasion charges against cryptocurrency Binance and is seeking an international arrest warrant for the company’s regional manager for Africa who fled custody last week. The manager Nadeem Anjarwalla, a British-Kenyan, was detained in connection with an ongoing criminal investigation into Binance’s activities in Nigeria. Nigeria’s security adviser’s office said it is working with Interpol after Anjarwalla escaped on Friday. Binance said on Monday it was aware that Anjarwalla was no longer in Nigerian custody and was working with authorities to resolve the issue. Anjarwalla and Tigran Gambaryan, a U.S. citizen and Binance’s head of financial crime compliance, flew to Nigeria following the country’s decision to ban several cryptocurrency trading websites and were detained on arrival on Feb. 26. Anjarwalla and Gambaryan could not be contacted.
A person representing them, who asked not to be named, said the two officials were being held unlawfully since their detention order expired on March 12, adding that Anjarwalla left Nigeria by lawful means. “Nadeem left unlawful custody on Saturday 23, he was not being tried by Nigerian courts and has not been informed of any charges against him,” the person said. Nigerian authorities had asked a court in Abuja to extend the detention of the two Binance executives after the warrant under which they were initially detained lapsed, people familiar with the matter said, asking not to be named because they were not authorised to speak publicly. On Monday, Nigeria’s Federal Inland Revenue Service (FIRS) filed a case in Abuja accusing Binance, the world’s largest cryptocurrency exchange, of four counts of tax evasion. The FIRS charges include non-payment of value-added tax (VAT), company income tax, failure to file tax returns, and complicity in helping customers to evade taxes through its platform.
Binance had no immediate comment on the tax charges. Binance this month said it would stop all transactions and trading in Nigeria’s local currency after March 8 following a country-wide crackdown on crypto exchanges that authorities have blamed for fuelling demand for U.S. dollars on the black market. The company said it would stop supporting withdrawals and any remaining balances in Nigerian naira would be automatically converted into Tether – a stablecoin whose value is pegged to the U.S. dollar. The Technology Roundup newsletter brings the latest news and trends straight to your inbox. According to the report upon receiving the report, the Office of the NSA took immediate steps, in conjunction with relevant security agencies, MDAs, as well as the international community, to apprehend the suspect.“Preliminary investigation shows that Mr Anjarwalla fled Nigeria using a smuggled passport,” it said. “The personnel responsible for the custody of the suspect have been arrested, and a thorough investigation is ongoing to unravel the circumstances that led to his escape from lawful detention.” Until his escape, Anjarwalla, who holds British and Kenyan citizenship and serves as Binance’s Africa Regional Manager, was facing trial in Nigerian courts. The suspect escaped while under a 14-day remand order by a court. He was scheduled to appear before it again on April 4, 2024.
His escape is the latest twist in the ongoing brawl between Nigerian authorities and the cryptocurrency platform. The Federal Government had in recent months heightened its crackdown on suspected money launderers and currency speculators. A month ago, the Central Bank of Nigeria (CBN) said over $26bn was channelled through Binance without a trace. “In the last one year,” CBN governor Yemi Cardoso said, “more than $26 billion have been funnelled through Binance without trace”. On Monday, Nigerian authorities also filed tax evasion charges against Binance. The Federal Inland Revenue Service (FIRS) filed the charges at the Federal High Court in Abuja. Nigeria’s crackdown on Binance started months after the platform pleaded guilty to money laundering charges against it by the US Department of Justice. It also agreed to pay $4.3 billion to settle the criminal charges.
