One of two Binance executives detained in Nigeria has escaped custody, and the Nigerian government has filed new tax evasion charges against the global cryptocurrency exchange.
The Federal Inland Revenue Service (FIRS) on Monday announced that four new charges of tax evasion have been filed at the Federal High Court in Abuja, according to a report numerous local media reports.
Binance faces charges for allegedly failing to pay value added tax (VAT) and corporate income taxes, failing to file tax returns and complicity in helping customers evade taxes through its platform, reports said.
In addition to the company, two top managers of the company – US citizen Tigran Gambaryan and British-Kenyan Nadeem Anjarwalla – were charged and detained by Nigerian authorities.
Over the weekend, reports emerged that Anjarwalla escaped on Friday from the guest house in Abuja where the couple was being held.
“We have been informed that Nadeem is no longer in custody in Nigeria. Our primary focus continues to be the safety of our employees and we are working with the Nigerian authorities to quickly resolve this issue,” a Binance spokesperson told CNBC.
The country is negotiating with Interpol to obtain an international arrest warrant for Anjarwalla, Reuters reported, citing Nigeria’s national security adviser. The National Security Agency did not immediately respond to CNBC’s request for comment.
The families of the two employees have declined to comment at this time, but issued statements on March 20 following a hearing at which Nigerian authorities extended their detention.
Anjarwalla’s wife, Elahe Anjarwalla, said she was “completely heartbroken” that he would not return home in time to celebrate their son’s first birthday.
“Nadeem does not have the authority to make high-level decisions at Binance, and I once again wholeheartedly ask the Nigerian authorities to allow him and Tigran to return home while they continue negotiations with Binance. I also call on the UK and Kenyan Governments to do more to bring Nadeem home to us,” she said.
Gambaryan’s wife Yuki said she doesn’t know what to tell her two children about their father’s absence.
“Tigran has received worldwide recognition for his work in law enforcement, and many of his colleagues would say that Tigran’s ongoing efforts are what keep cryptocurrencies safe and pure,” she said.
“Please allow him to return home to continue this good work. The longer our husbands are away from our families, the more difficult it becomes for us to go about our daily lives.”
A month in custody
Gambaryan and Anjarwalla were taken into custody in Nigeria on February 26., although neither of them had been charged at that time. The Abuja government has accused its employer of damaging the country’s local currency.
The Nigerian naira is one of the fastest-performing currencies in the world and has lost almost 70%. its value to the US dollar Over the past year. In recent years, locals have flocked to cryptocurrencies to protect their savings from currency declines and soaring inflation, which reached nearly 30% two months ago.
But Binance’s problems in Nigeria appear to have less to do with a crackdown on the cryptocurrency space and more to do with an attack on what Abuja sees as a bad player in the space.
IBADAN, Nigeria – February 19, 2024: Demonstrators participate in a protest against rising prices and poor living conditions in Ibadan on February 19, 2024.
Samuel Alabi | Afp | Getty Images
Nigeria has expressed two main concerns about Binance: the fact that the government does not know where the money is going or how it passes through the exchange, and that the exchange is allegedly facilitating speculation in the price of the naira through its peer-to-peer network. market.
The government argued that Binance laundered money and that $26 billion worth of untraceable funds passed through the exchange.
Abuja authorities also allege that traders using the P2P platform to exchange local currencies for US dollar-pegged stablecoins such as tether were colluding on price to maximize exchange value. Binance has since shut down its peer-to-peer trading platform in Nigeria.
This is not the first time Abuja has disputed with Binance. In July 2023The Nigerian Securities and Exchange Commission issued a circular warning people against doing business with the exchange, noting that “any investment in public transactions with this entity” involves a “high level of risk” that “may result in total loss of investment.” “
— CNBC’s Ruxandra Iordache contributed to this report.