Binance Responds To Nadeem’s Escape From Detention In Nigeria

Nadeem Anjarwalla

THE international cryptocurrency platform Binance has announced that it is collaborating with Nigerian local authorities to guarantee worker safety and settle any outstanding matters with the federal government.

Recall that Nadeem Anjarwalla, one of the two executives from Binance who were being held in Nigeria on suspicion of tax evasion and other offenses, managed to get away from police custody.

The 38-year-old guy broke free from the Abuja guest home where he and his companion were being held on Friday, March 23, by following the orders of the on-duty guards to a nearby mosque for prayers in observance of the continuing Ramadan fast.

It is thought that the British-Kenyan national took a Middle East plane to leave Abuja.

Authorities are reportedly attempting to figure out where he headed to, in an effort to get him back into custody.

The Binance executive reportedly used a Kenyan passport to leave Nigeria, according to an immigration official. But given that he was only carrying the British passport when he was apprehended, he claimed that police were attempting to ascertain how he got the passport.

According to a different source, the two officials were detained at a guest home and given several privileges, such as the ability to use phones, which Anjarwalla is thought to have taken use of in order to plan his escape.

“We were made aware that Nadeem is no longer in Nigerian custody. Our primary focus remains on the safety of our employees and we are working collaboratively with Nigerian authorities to quickly resolve this issue,” a binance spokesperson said.

Anjarwalla was reportedly no longer in the custody of Nigeria, according to information released by Binance. When questioned about the specifics of his travels, Binance stated that its top priority is the security of its workers.

The US citizen in charge of managing financial crime compliance at the cryptocurrency exchange platform, Tigran Gambaryan, and Anjarwalla, the regional manager for Binance in Africa, were arrested as soon as they arrived in Nigeria on February 26, 2024.

The two executives were charged with a crime in an Abuja Magistrate Court.

The Economic and Financial Crimes Commission, or EFCC, was given a 14-day remand order by the court on February 28, 2024. The Nigerian government was also required by the court to receive data and information about Nigerians who trade on Binance's platform.

The court prolonged the authorities' remand of the officials for a further 14 days to stop them from tampering with evidence after Binance disobeyed the order. The matter was then postponed until April 4 by the court.

 

The Nigerian government filed a formal complaint against Binance Holdings Limited, Anjarwalla, and Gambaryan in March, alleging that they had committed an offense under Section 8 of the Value Added Tax Act of 1993 (as amended) by providing services to subscribers on their platform without registering with the Federal Inland Revenue Service (FIRS) and failing to pay all applicable taxes that the service administered. The government's charges were brought before the Federal High Court in Abuja.

The Federal Government has been taking aggressive action against individuals it believes are financing terrorism and money laundering over the last three months. Some of these individuals are allegedly using the Binance platform for illicit purposes.

 

It stated Nigerian traders whose identities were hidden by Binance exchanged more than $21.6 billion. The authorities further asserted that their investigations had shown that dishonest people were damaging the Nigerian economy and depreciating the Naira relative to other currencies by utilizing Binance for money laundering, terrorism financing, currency speculation, and market manipulation.

Following the cryptocurrency exchange platform's guilty plea and $4.3 billion payment to resolve criminal money laundering accusations brought by the US Department of Justice, months later, Binance officials were arrested in Nigeria.

Changpeng Zhao, aka CZ, the CEO and founder of Binance, entered a guilty plea and decided to step down. A US judge has continued his criminal prosecution until April 30.

 

The Federal Government also filed criminal charges against Binance on Monday, March 25.

Allegations of failure to file tax returns, non-payment of company income tax, value-added tax, VAT, and cooperation in helping users cheat taxes using the platform are among the charges brought against Binance.

Furthermore, according to the Federal Government, Binance violated domestic tax laws by not registering with the Federal Inland Revenue Service, or FIRS, for tax purposes.