Binance Executive Escapes Detention in Nigeria Amid Tax Evasion Charges

A top Binance executive has managed to flee detention in Nigeria’s capital, Abuja using a suspected fake Kenyan passport. This has escalated legal troubles for the company which also now faces new criminal charges of tax evasion in the country.

The dramatic escape unfolded on Friday, March 22nd when Nadeem Anjarwalla, Binance’s regional manager for Africa, reportedly fled from the guest house where he was being held by Nigerian authorities.

Anjarwalla and colleague Tigran Gambaryan, head of Binance’s criminal investigations team, had been detained since February 26th after arriving to discuss Nigeria’s recent ban on several crypto trading platforms including Binance, Coinbase, and Kraken.

NEW 🇳🇬: #Binance Executive allegedly escapes detention in Nigeria.

— Coinwaft (@coinwaft) March 25, 2024

Binance Executive Detention and Tax Evasion Charges

Upon their arrival to Nigeria, Anjarwalla and Gambaryan were immediately detained by the office of the National Security Adviser, who seized their passports.

This move came after the Nigerian Central Bank Governor raised alarms about vast sums of money described as “illicit flows” totaling around $26 billion passing through Binance’s operations in Nigeria within just one year. Officials stated their inability to adequately identify the sources and users involved.

A few weeks after their detention, Anjarwalla’s escape was accomplished despite having his British passport confiscated by authorities. He allegedly used a fake Kenyan passport to board an international flight out of Abuja’s airport, leaving immigration officials scrambling to investigate how he acquired the fraudulent travel document while in custody.

The families of both detained executives had been pleading for their release in the weeks leading up to Anjarwalla’s escape.

But the situation has only intensified, with the Nigerian government filing new criminal charges on Monday accusing Binance of tax evasion related to nearly $21 billion in funds allegedly laundered through the exchange linked to terrorist financing.

Read Also: Nigerian Government Blocks Binance and Other Crypto Platforms Amid Forex Market Manipulation Concerns

Binance’s History of Compliance Issues

The charges by Nigerian authorities come after Binance reportedly refused to comply with a court order to provide data on its Nigerian traders using the platform.

The legal actions coincide with economic turmoil in Nigeria, which has seen its national currency, the naira, devalue by 70% against the U.S. dollar over the past year amid concerns over the role of cryptocurrencies in illicit financial activities.

For Binance, this explosive situation in Nigeria is just the latest in a series of major regulatory battles. In November, Binance founder and CEO Changpeng Zhao pleaded guilty to violations of U.S. anti-money laundering laws and sanctions, paying over $4.3 million in penalties and fines.

The exchange is also facing a high-stakes lawsuit from the U.S. Securities and Exchange Commission accusing Binance of operating an illegal trading platform and selling unregistered securities when it launched in 2017.

Months earlier, regulators alleged Binance and Zhao had evaded rules from the Commodity Futures Trading Commission as well.

Read Also: Binance Executives Detained in Nigeria Amid Naira Crisis and Crypto Crackdown