The logo of cryptocurrency exchange Binance is displayed on a smartphone with the word “Cancel” displayed on a computer screen in the background.
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One of two Binance executives detained in Nigeria has escaped custody, while the Nigerian government has filed new tax evasion charges against the global cryptocurrency exchange.
Four new charges related to tax evasion have been filed before the Federal High Court in Abuja, the Federal Inland Revenue Service (FIRS) of Nigeria announced on Monday. Several local media reports.
According to the report, Binance faces charges of allegedly failing to pay value-added tax (VAT) and corporate income tax, failing to file tax returns, and conspiring to help customers evade taxes through its platform.
In addition to the company, two senior executives – US citizen Tigran Gambaryan and British-Kenyan Nadeem Anjarwalla – were detained by Nigerian authorities Charged and remanded.
Reports emerged over the weekend that Anjarwala escaped on Friday from an Abuja hotel where two people were detained.
A Binance spokesperson told CNBC: “We have been informed that Nadeem is no longer in Nigerian custody. Our primary focus remains the safety of our employees and we are working with the Nigerian authorities to quickly resolve this issue.”
Reuters quoted Nigeria’s national security adviser as reporting that the country was negotiating with Interpol to obtain an international arrest warrant for Anjarwala. The National Security Agency did not immediately respond to CNBC’s request for comment.
The two employees’ families have declined to comment for now, but issued a statement on March 20 during a hearing for Nigerian authorities to extend their detention.
Anjarwalla’s wife, Elahe Anjarwalla, said she was “completely heartbroken” that he would not be able to make it home in time to celebrate her son’s first birthday.
“Nadeem has no authority to make high-level decisions at Binance, and I once again request from the bottom of my heart that the Nigerian authorities allow him and Tigran to return home while discussions with Binance continue. I also call on the British and Kenyan governments to take more steps Let Nadeem come back to us,” she said.
Gambayan’s wife, Yuki, said she didn’t know how to tell her two children about their father’s absence.
“Tigran is recognized globally for his work in law enforcement, and many of his peers will say that Tigran’s ongoing efforts keep cryptocurrency safe and clean,” she said.
“Please let him come home and continue this good work. The longer our husbands are away from their families, the harder it becomes for us to live our daily lives.”
Detained for a month
Gambaryan and Anjarwalla Arrested in Nigeria on February 26, although neither man was charged with any crime at the time. The Abuja government has accused their employers of wreaking havoc on the country’s local currency.
Nigeria’s naira is one of the world’s worst-performing currencies, having lost nearly 70% of its value its value against the US dollar in the past year. In recent years, locals have flocked to cryptocurrencies to protect their savings from plummeting currencies and inflation that surged nearly 30% two months ago.
But Binance’s troubles in Nigeria appear to be less a crypto crackdown and more an attack on what Abuja considers bad actors in the space.
Ibadan, Nigeria – February 19, 2024: Demonstrators protest against rising prices and difficult living conditions in Ibadan on February 19, 2024.
Samuel Alabi | AFP | Getty Images
Nigeria expressed two main concerns to Binance: that the government does not know where the funds are going or how they move on the exchange, and that the exchange allegedly facilitates speculation in the price of the naira through its peer-to-peer service. market.
government claims Binance is laundering money Untraceable funds worth $26 billion have been moved through exchanges.
Authorities in Abuja also argue that traders use the P2P platform to exchange local currencies for dollar-pegged stablecoins such as Tether, colluding prices to maximize the value of the exchange. Binance has since shut down its peer-to-peer trading platform in Nigeria.
This is not the first time Abuja has raised objections with Binance. July 2023The Nigeria Securities and Exchange Commission issued a notice warning people not to do business with the exchange, noting that “any investing member of the public dealing with this entity” does so at a “high risk” that “may result in Total loss of investment”.
— CNBC’s Ruxandra Iordache contributed to this report.
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