- One of Binance’s executives under the Nigerian Government’s custody has escaped detention
- Nadeem Anjarwalla reportedly escaped last Friday and his whereabouts are yet to be determined by Nigerian authorities
- The Nigerian government has charged Binance with four counts of tax evasion
Detained Binance executive, Nadeem Anjarwalla, has escaped the Nigerian government’s custody. Anjarwalla and his colleague Tigran Gambaryan were arrested in February and kept in custody by Nigerian authorities as part of the government’s investigation into Binance’s activities in the country. According to a local news outlet, the 38-year-old escaped on Friday from a guest house where they were being held in Abuja Nigeria’s capital city with his whereabouts yet to be determined.
Anjarwalla Flees Nigeria on International Flight Despite Seized Passport
Anjarwalla, the Regional Head of Binance in Africa reportedly made his surprise escape on Friday after guards escorted him to a mosque for prayers in observance of the ongoing Muslim Ramadan fast. Following the incident, Nigerian authorities have stated they are yet to determine his whereabouts and bring him back to custody.
Upon their arrest, Nigerian authorities confirmed that Anjarwalla only had his British passport. This absence of the requisite travel documents still leaves a huge question on how the former detainee had managed to access a passport.
Meanwhile, a source from the Nigerian Immigration Service has revealed that the Binance executive fled the country with a Kenyan passport. The detainees had access to different luxuries in the “comfortable guest house” they were being held at, including telephones – which authorities believe aided Anjarwalla’s plans for a “smuggled passport” with which he escaped.
“Upon receiving this report, this office took immediate steps, in conjunction with relevant security agencies, MDAs, as well as the international community, to apprehend the suspect. Security agencies are working with Interpol for an international arrest warrant on the suspect,” said the ONSA (Office of the National Security Adviser).
According to Zakari Mijinyawa, the head of strategic communications at the ONSA, the “personnel responsible” for the suspect’s custody have been arrested. They are undergoing a thorough investigation to ascertain the circumstances surrounding his “escape from lawful detention.”
Before his escape, Anjarwalla was facing trial in Nigeria over his company Binance’s alleged role in fueling the Forex speculation which sent the Nigerian naira to a record low against the US dollar. Anjarwalla was on a 14-day remand order and was supposed to show up in court again on April 4. However, the direction of the legal process seems uncertain following his escape.
Nigerian Government Slams Binance With Tax Evasion Charges
The Federal Government of Nigeria has filed a four-count tax evasion suit against Binance. Announcing the lawsuit this Monday, the Federal Inland Revenue Service (FIRS) accused Binance of non-payment of Value-Added Tax, Company Income Tax, failure to file tax returns, and aiding customers to evade taxes via its platform.
The Nigerian government has also accused the popular crypto exchange of failing to register with the FIRS for tax reporting and violating other tax regulations. According to the FIRS, companies conducting businesses exceeding #25 million are deemed by the Finance Act to be present in Nigeria.
Unfortunately, Binance, which is supposed to pay taxes like “Company Income Tax (CIT) and also collect and remit Value Added Tax (VAT)” has allegedly violated Nigeria’s laws and potentially faces legal action for its non-compliance.
With the increasing inflation rate in Nigeria, citizens are increasingly resorting to saving their funds in crypto exchanges like Binance as a hedge against inflation. This increased patronage of crypto exchanges especially Binance is believed to be adversely affecting the naira’s value in the Forex market prompting the government to initiate legal action against the renowned exchange.