Binance Executive Flees Nigerian Custody Amid Tax Evasion Charges

A high-ranking executive from cryptocurrency exchange Binance has escaped Nigerian custody while facing tax evasion charges. Nadeem Anjarwalla, detained on February 26th, allegedly fled on March 22nd, leaving authorities questioning the logistics of his escape as his passport was confiscated upon his initial detention. The incident raises concerns about the security measures at the detention facility and Binance's possible involvement in the escape.

Binance Executive Escapes Nigerian Custody Amidst Tax Evasion Charges

By The Wall Street Journal

One of two senior executives from cryptocurrency exchange Binance has evaded Nigerian authorities after criminal charges were filed against him. The executive, Nadeem Anjarwalla, was initially detained on February 26th as part of the country's ongoing crackdown on the exchange.

Local reports indicate that the Nigerian government has filed tax evasion charges against Binance in the wake of Anjarwalla's escape. This development follows a series of escalating actions taken by authorities against the exchange.

An Executive's Escape

A Nigerian newspaper has revealed that Anjarwalla fled government custody nearly a month after his detention. According to the report, the executive escaped the country on March 22nd.

After his initial arrest, Anjarwalla was held alongside another Binance executive, Tigran Gambaryan, at an Abuja guest house. On Friday, March 22nd, Anjarwalla was reportedly escorted to a nearby mosque by guards for prayer in observance of Ramadan. However, he subsequently vanished and is believed to have flown out of Abuja on a Middle East Airline flight.

The circumstances surrounding Anjarwalla's escape have raised questions for authorities. The executive, who holds dual British and Kenyan citizenship, had his passport confiscated during his detention.

Investigators have since determined that Anjarwalla fled the country using his Kenyan passport. How he gained access to this passport remains a mystery, as he reportedly only had his British travel document in his possession when apprehended in February.

Sources have informed local news outlets that the guest house where the Binance executives were held was relatively comfortable and allowed for certain privileges. It is believed that Anjarwalla exploited these privileges, including access to a phone, to plan his escape.

Ongoing Investigation and International Cooperation

Authorities are actively pursuing efforts to locate Anjarwalla and return him to custody. They are reportedly working to determine his intended destination. Interpol has been contacted to issue an international arrest warrant.

Binance has acknowledged the situation and confirmed that it is cooperating with Nigerian authorities. A representative told CNBC: "We were made aware that Nadeem is no longer in Nigerian custody. Our primary focus remains on the safety of our employees and we are working collaboratively with Nigerian authorities to quickly resolve this issue."

Tax Evasion Charges

As Bitcoinist previously reported, Nigeria's crackdown on Binance has intensified in recent weeks. Earlier this month, the exchange was fined $10 billion by the government, which accused Binance of contributing to the devaluation of the Nigerian naira.

Subsequently, the government demanded that Binance CEO Richard Teng address allegations of terrorist financing, money laundering, and tax evasion.

The latest reports indicate that the Nigerian government has filed four tax evasion charges against Binance at the Federal High Court in Abuja. Anjarwalla and Gambaryan are listed as the second and third defendants in the case.

The charges allege that Binance failed to pay Value-Added Tax (VAT) and Company Income Tax, did not file tax returns, and assisted customers in evading taxes through its platform.

The Nigerian government also accuses Binance of failing to register with the Federal Inland Revenue Service (FIRS) for tax purposes and violating existing tax regulations in the country.

Binance's Regulatory Struggles

In November 2023, Binance settled charges brought by the US Department of Justice related to anti-money laundering violations. The settlement, totaling $4.3 billion, also required CEO Changpeng Zhao to step down.

Binance has faced regulatory challenges in other jurisdictions as well. The company's failure to comply with local laws has led to investigations and sanctions in countries such as Japan, the United Kingdom, and the United States.

Binance's efforts to address these regulatory concerns have been ongoing. The exchange has invested in compliance programs and has hired a team of legal and compliance experts. However, the company's global reach and the decentralized nature of cryptocurrency trading continue to present challenges.

Market and Regulatory Impact

The news of Anjarwalla's escape and Binance's ongoing legal troubles has had a mixed impact on the cryptocurrency market. Binance Coin (BNB), the exchange's native token, has experienced a decline in value over the past week.

Regulatory authorities around the world are closely monitoring the situation. The Nigerian government's actions against Binance set a precedent for other countries considering imposing stricter regulations on cryptocurrency exchanges.

As the regulatory landscape evolves, Binance and other exchanges will need to adapt their operations to ensure compliance. The outcome of the Nigerian case and Binance's response to the charges will be closely watched by industry participants and regulators alike.