Nadeem Anjarwalla, a British-Kenyan executive at cryptocurrency exchange Binance, has escaped from lawful custody in Nigeria, where he and a colleague were being detained on allegations of tax evasion and other offenses. The escape, which occurred on Friday, March 22, has prompted Nigerian authorities to intensify their efforts to apprehend Anjarwalla and file additional charges against the global crypto platform.
According to sources familiar with the matter, Anjarwalla, 38, fled from the Abuja guest house where he and U.S. citizen Tigran Gambaryan, who oversees financial crime compliance at Binance, were being held. The two executives were detained upon their arrival in Nigeria on February 26, 2024, and a criminal charge was subsequently filed against them before a Magistrate Court in Abuja.
Reports suggest that Anjarwalla exploited the privileges granted to the detained executives, such as the use of telephones and being allowed to visit a nearby mosque for prayers during the ongoing Ramadan fast, to plot his escape. It is believed that he fled the country using a Kenyan passport, despite his British passport remaining in the custody of Nigerian authorities.
The escape has raised questions about the security measures in place at the guest house and the circumstances surrounding Anjarwalla's ability to obtain a Kenyan passport and board an international flight undetected. Zakari Mijinyawa, Head of Strategic Communication at the Office of the National Security Adviser, has yet to provide an official statement on the matter.
In the wake of Anjarwalla's escape, the Nigerian government has filed four new charges against Binance Holdings Limited, Anjarwalla, and Gambaryan at the Federal High Court in Abuja. The charges accuse the defendants of offering services to subscribers on their platform while failing to register with the Federal Inland Revenue Service, pay relevant taxes, issue invoices, and deduct necessary Value Added Taxes.
The defendants are also accused of aiding and abetting subscribers on their Binance trading platform to unlawfully refuse to pay or neglect to pay taxes, an offense punishable under the provisions of the Companies Income Tax Act.
The Nigerian government's crackdown on Binance comes amidst allegations that the platform has been used for money laundering, terrorist financing, currency speculation, and market manipulation, which have allegedly distorted the Nigerian economy and weakened the Naira against other currencies. Authorities claim that over $21.6 billion was traded by Nigerians whose identities were concealed by Binance.
The detention of Binance officials in Nigeria began months after the crypto exchange platform pleaded guilty and agreed to pay $4.3 billion to settle criminal money laundering charges levied by the U.S. Department of Justice. Binance founder and CEO Changpeng Zhao, also known as CZ, pleaded guilty and agreed to resign, with his criminal trial postponed to April 30 by a U.S. court.
The families of the detained executives have expressed their concerns and heartbreak over the situation. Elahe Anjarwalla, Nadeem's wife, stated that she was "completely heartbroken" that he would not be home in time to celebrate their son's first birthday, while Tigran Gambaryan's wife, Yuki, struggled to explain their father's absence to their two children.
