The ongoing legal battle between Nigerian authorities and cryptocurrency exchange Binance has taken a dramatic turn, as the country’s officials have traced the location of the previously fugitive executive, Nadeem Anjarwalla, to Kenya. Anjarwalla, who serves as Binance’s regional head for Africa, had been facing charges of money laundering, tax evasion, and currency manipulation in Nigeria but managed to flee the country on March 22.
TLDR
- Binance executive Nadeem Anjarwalla, the regional head for Africa, fled Nigeria after being charged with money laundering, tax evasion, and currency manipulation.
- Nigerian authorities have traced Anjarwalla’s location to Kenya and are working with Interpol and Kenyan authorities to extradite him back to Nigeria.
- Anjarwalla managed to flee Nigeria by using a Kenyan passport, despite his UK passport being held by Nigerian authorities.
- Another Binance executive, Tigran Gambaryan, remains in custody in Nigeria, with his case adjourned until April 19 due to delays in serving him legal documents.
- The charges against Binance and its executives stem from allegations of manipulating Nigeria’s fiat currency, the Naira, and facilitating the flow of illicit funds through the exchange.
According to local media reports, the Nigerian government is now working closely with Interpol and Kenyan authorities to facilitate Anjarwalla’s extradition back to Nigeria, where he will face the charges leveled against him. The process of locating Anjarwalla and coordinating his extradition has been a complex one, as the Binance executive allegedly used a Kenyan passport to board a flight out of Abuja, despite his UK passport being in the custody of Nigerian authorities.
This revelation has prompted an investigation by immigration officials to determine how Anjarwalla obtained travel documents and managed to leave the country while under investigation. Meanwhile, Anjarwalla’s colleague, Tigran Gambaryan, who served as Binance’s head of financial crime compliance, remains in custody in Nigeria.
Gambaryan’s case has been adjourned until April 19 due to a request from the Federal Inland Revenue Service (FIRS), Nigeria’s tax authority. The FIRS claimed that they were unable to serve Gambaryan with legal documents while he was in the custody of the Economic and Financial Crimes Commission (EFCC), Nigeria’s anti-graft agency, since the end of February.
The charges against Binance and its executives stem from allegations that the cryptocurrency exchange facilitated the manipulation of Nigeria’s fiat currency, the Naira, and enabled the flow of illicit funds through its platform. These claims have been part of a broader crackdown by Nigerian authorities on suspected money laundering activities and individuals allegedly using Binance for illicit purposes.
JUST IN: The Binance Executive, Nadeem Anjarwalla that escaped
Custody has been found in Kenya pic.twitter.com/hS0jyzUMAa— Nigeria Stories (@NigeriaStories) April 13, 2024
In early March, Binance announced that it would halt all Naira transactions and remove Naira trading pairs from its peer-to-peer platform, effectively leaving the Nigerian market. This decision came amid heightened scrutiny from the Nigerian government, with the Central Bank of Nigeria governor, Olayemi Cardoso, expressing concerns about crypto exchanges operating in the country facilitating transactions exceeding $21.6 billion in illicit funds.
The case against Binance and its executives has drawn significant attention from the global cryptocurrency community, with some industry figures expressing support for the detained executives and criticizing the Nigerian government’s approach to crypto regulation.
Notably, Binance CEO Changpeng Zhao has remained relatively silent on the matter, while the exchange has asserted that Gambaryan held no decision-making power within the company. Meanwhile, Gambaryan’s wife has launched a petition calling for his release, which has garnered several signatures from supporters.
As the legal proceedings continue, the case highlights the ongoing tensions between cryptocurrency exchanges and regulatory authorities around the world. While the Nigerian government maintains its stance on combating alleged financial crimes, the industry argues for a balanced approach that fosters innovation while mitigating risks.
The extradition of Anjarwalla, if successful, is expected to provide further clarity on the charges against Binance and its executives, as well as the Nigerian government’s approach to regulating the cryptocurrency space within its borders.
