In a dramatic turn of events, an executive of cryptocurrency exchange Binance has managed to escape custody in Nigeria, where authorities have launched a criminal investigation against the platform over allegations of money laundering. The escape has sparked widespread concern and calls for heightened vigilance within law enforcement agencies.
Nadeem Anjarwalla, Binance’s regional manager for Africa, reportedly fled Nigeria using a smuggled passport, according to a statement from the office of Nigeria’s National Security Adviser. Anjarwalla, who holds dual British and Kenyan citizenship, had been detained in Nigeria since February 26 along with a colleague, Tigran Gambaryan, an American citizen. While Anjarwalla succeeded in escaping custody, Gambaryan remains in captivity.
The detention of the Binance executives came amid a crackdown on the crypto platform, which has been accused by Nigerian authorities of facilitating money laundering and terrorism financing. Binance halted all trading with the Nigerian naira currency on its platform in early March following these accusations, although no evidence has been publicly provided to support the claims.
The circumstances surrounding Anjarwalla’s escape remain shrouded in mystery. Reports indicate that he fled from a guest house in the capital city of Abuja after guards escorted him to a nearby mosque for prayers. The escape has prompted the arrest of personnel responsible for Anjarwalla’s custody, with authorities launching a thorough investigation to determine how he managed to evade lawful detention.
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Anjarwalla and Gambaryan were detained on a court order and are scheduled to appear in court on April 4, according to the statement from Nigeria’s National Security Adviser’s office. Meanwhile, Nigeria’s Federal Inland Revenue Service has filed a four-count charge of tax evasion against Binance, alleging complicity in aiding customers to evade taxes through its platform.
“The charges detail specific instances where Binance purportedly violated tax laws, such as failing to issue invoices for VAT purposes, thus obstructing the determination and payment of taxes by subscribers,” stated the Federal Inland Revenue Service.
The escape of the Binance executive underscores the escalating tensions surrounding cryptocurrency regulation in Nigeria, Africa’s largest crypto economy. With many citizens relying on crypto to hedge against inflation and currency devaluation, the crackdown on platforms like Binance has raised concerns about the future of digital assets in the country. As investigations continue and legal proceedings unfold, the crypto community awaits further developments in this unfolding saga.
