NIGERIA has escalated its legal battle against cryptocurrency behemoth Binance by filing tax evasion charges and initiating a global hunt for the company’s regional manager for Africa. Officials revealed on Monday that Nadeem Anjarwalla, the British-Kenyan manager, had absconded from custody last week amidst an ongoing criminal inquiry into Binance’s operations in Nigeria.
‘Nadeem left unlawful custody on Saturday 23.He was not being tried by Nigerian courts and has not been informed of any charges against him,’ a representative for Anjarwalla asserted, speaking on the condition of anonymity.
Anjarwalla, along with Tigran Gambaryan, Binance’s head of financial crime compliance, landed in Nigeria following the country’s ban on several cryptocurrency trading platforms. However, they were apprehended upon arrival on February 26. Efforts to reach Anjarwalla and Gambaryan have been futile.
‘We are aware that Mr. Anjarwalla is no longer in Nigerian custody and are working with authorities to resolve the issue,’ Binance stated on Monday in response to inquiries regarding Anjarwalla’s escape.
According to sources familiar with the matter, Nigerian authorities sought to extend the detention of the Binance executives after the expiration of their initial detention order on March 12. ‘The warrant under which they were initially detained lapsed, prompting Nigerian authorities to seek a court extension,’ the sources revealed, speaking on the condition of anonymity.
In response, Binance stated on Monday that it was cooperating with authorities to address the situation but refrained from further comment on the tax charges levied against them by Nigeria’s Federal Inland Revenue Service (FIRS). The FIRS has accused Binance, the world’s largest cryptocurrency exchange, of multiple counts of tax evasion, including non-payment of value-added tax (VAT), company income tax, and failure to file tax returns. Moreover, the FIRS alleges Binance of aiding customers in evading taxes through its platform.
‘The allegations made by the FIRS are baseless, and we are confident in our compliance with Nigerian tax laws,’ a spokesperson for Binance asserted.
The move by Nigerian authorities comes amidst a broader crackdown on cryptocurrency exchanges in the country. Binance announced earlier this month its decision to halt all transactions and trading in Nigeria’s local currency after March 8, citing regulatory pressures. The company disclosed plans to convert remaining balances in Nigerian naira into Tether, a stablecoin pegged to the US dollar.
‘The decision to cease operations in Nigeria was not taken lightly, but we must comply with local regulations,’ Binance emphasised in a statement.
The unfolding legal saga between Nigeria and Binance underscores the escalating tensions between regulators and cryptocurrency platforms in emerging markets, with significant implications for the global crypto industry.