Following his weekend arrest in Kenya, Kenyan authorities are preparing to deport Nadeem Anjarwalla, a Binance executive the Nigerian government wanted. Anjarwalla, Binance Africa’s regional manager, faces charges related to tax evasion and the use of illegal passports.
A joint operation involving the EFCC, Nigeria Police Force, Kenya Police Service, FBI, and INTERPOL led to Anjarwalla’s capture in Kenya after weeks of search. According to reports, he is expected to be extradited to Nigeria within the week to face trial.
Anjarwalla and another executive, Tigran Gambrayan, encountered legal issues in Nigeria in February, leading to their detention. Gambrayan, who is also facing tax evasion charges, has been detained since then. However, Anjarwalla escaped custody in March using a Kenyan passport and has been a fugitive since.
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Ongoing Binance Conflict with Nigerian Authorities
The situation highlights the ongoing conflict between Binance and Nigerian authorities. The exchange has pledged cooperation to resolve the issue, but legal proceedings have faced delays. The court adjourned Gambrayan’s case twice because the exchange needed to be formally served with the charges.
While Binance CEO Richard Teng has promised cooperation, efforts to secure the release of the detained executives have not been disclosed. Gambrayan’s bail application hearing was postponed, and he remains in custody at the Kuje Correctional Centre.
Background on the Binance-Nigeria Conflict
The crackdown on Binance in Nigeria began in late February 2024 with a series of notable incidents. The Nigerian authorities detained two senior Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, as part of an ongoing investigation into the company’s operations. The arrests marked a turning point in the relationship between Binance and Nigerian regulators, who had previously expressed concerns about the exchange’s activities.
In late February 2024, the Nigerian government filed new tax evasion charges against Binance at the Federal High Court in Abuja. This action was part of a broader effort to address concerns related to the movement of funds through the exchange and allegations of price manipulation on the naira through the peer-to-peer marketplace. The Nigerian authorities had been monitoring Binance’s activities closely, and the new charges reflected a deepening of the company’s regulatory scrutiny.
The situation escalated further in late February 2024 when Binance faced accusations of money laundering, with approximately $26 billion in untraceable funds passing through the platform. This revelation raised significant concerns about the exchange’s role in facilitating illicit financial activities, and it prompted the Nigerian government to take a more aggressive stance against the company.
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In early March 2024, the Nigerian government announced that it was working with Interpol to secure an international arrest warrant for Nadeem Anjarwalla, who had reportedly escaped custody in late February. The intensifying legal pressure on Binance and its executives underscored the seriousness of the allegations against the company and the determination of the Nigerian authorities to hold it accountable.
In response to escalating regulatory pressure, Binance ceased its services in Nigerian Naira in early March 2024. This move was a significant blow to the company’s operations in Nigeria, as it effectively shut down one of the platform’s most widely used payment methods. The decision to halt Naira-denominated transactions reflected the growing challenges facing Binance in Nigeria and the company’s efforts to navigate the increasingly complex regulatory landscape.
The extradition and legal battles underscore the complexities of operating in cryptocurrency, particularly in jurisdictions with evolving regulatory environments. Binance’s troubles in Nigeria serve as a cautionary tale for other exchanges navigating regulatory challenges worldwide.