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Amid mounting accusations of money laundering and tax evasion against cryptocurrency exchange Binance, its executive, Nadeem Anjarwalla, has made a daring escape from custody in Nigeria. This development has deepened the rift between the West African nation and the global crypto giant as Nigeria intensifies its crackdown on the illicit use of digital assets.
Nadeem Anjarwalla, Binance’s African regional manager, and his American colleague Tigran Gambaryan were apprehended on February 26 upon their arrival in Nigeria amidst a crackdown on the crypto platform.
Under a court order, the two executives were detained for 14 days, with their custody ending on March 12. However, Anjarwalla reportedly escaped custody on Friday, March 24, utilizing a smuggled passport, as per Nigeria’s National Security Adviser’s office.
The details surrounding Anjarwalla’s escape remain shrouded in mystery. According to reports by the Premium Times newspaper, he fled from a guest house in Abuja after being granted entry to a nearby mosque for prayers by guards.
Following the escape, Nigerian authorities have apprehended the individuals responsible for Anjarwalla’s custody and have initiated an investigation into the incident. Additionally, security agencies are collaborating with Interpol to issue an international arrest warrant for Anjarwalla.
The situation escalates as Nigeria, Africa’s largest crypto economy by trade volume, accuses Binance of money laundering and terrorism financing. Despite the lack of public evidence supporting these claims, Binance ceased trading with the Nigerian naira currency on its platform in early March.
In further legal entanglements, Nigeria’s tax agency has levied a four-count charge of tax evasion against Binance, alleging failure to file tax returns and pay VAT and corporation tax. Moreover, the agency claims that Binance facilitated tax evasion for customers through its platform, citing specific instances of alleged tax law violations.
As part of the ongoing investigation, Nigerian authorities have demanded information from Binance on its top 100 users in the country and all transaction history for the past six months. This request raises concerns among cryptocurrency enthusiasts and privacy advocates about the potential repercussions of digital asset regulation in Nigeria.
The standoff between Binance and the Nigerian government occurs amidst the country’s worst economic crisis in three decades. Many Nigerians have turned to cryptocurrencies as a hedge against inflation and the depreciating value of the local currency, with exchanges like Binance serving as alternative marketplaces for determining the unofficial price of the naira.
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