The escape of security custody by Mr Nadeem Anjarwalla, the Chief Executive Officer of Binance has caused an uproar in Nigeria just as the Federal Inland Revenue Service (FIRS) on Monday filed criminal charges against the cryptcurrency platform.
The Office of the National Security Adviser (ONSA), on Monday said the suspect and one other are facing criminal probe into the activities of Binance in Nigeria.
The Head of Strategic Communication at the Office of the National Security Adviser, Zakari Mijinyawa, said Mr Anjarwalla escaped on Friday, 22 March.
The 38-year-old Anjarwalla on Friday (23 March) from the Abuja guest house where he and his colleague were detained after guards on duty led him to a nearby mosque for prayers in the spirit of the ongoing Ramadan fast.
He explained that upon receiving a report of Mr Anjarwalla’s escape, the NSA’s office took immediate steps, in conjunction with relevant security agencies, as well as the international community, to apprehend the suspect.
Security agencies are working with Interpol for an international arrest warrant on the suspect, he said.
“Preliminary investigation shows that Mr Anjarwalla fled Nigeria using a smuggled passport,” the statement said.
“The personnel responsible for the custody of the suspect have been arrested, and a thorough investigation is ongoing to unravel the circumstances that led to his escape from lawful detention.
“Recall that the Federal Government of Nigeria, like other governments around the world, has been investigating money laundering and terrorism financing transactions perpetrated on the Binance currency exchange platform.”
Until his escape, Mr Anjarwalla, who holds British and Kenyan nationalities and serves as Binance’s Africa regional manager, was being tried in Nigerian courts. The suspect escaped while under a 14-day remand order by a court in Nigeria and was scheduled to appear before the court again on 4 April.
“We urge the Nigerian public and the international community to provide whatever information they have that can assist law enforcement agencies to apprehend the suspect,” he said.
Binance disclosed that it was informed that Mr Anjarwalla was no longer in Nigerian custody.
When asked about specific details of his whereabouts, Binance said it is only concerned about the safety of its employees.
“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,” a Binance spokesperson said.
The Nigerian government had, in the past three months, been cracking down on suspected money launderers and terrorism financiers, some of whom it alleged are using the Binance platform for criminal activities
The Nigerian government said over $21.6 billion was traded by Nigerians whose identities were concealed by Binance.
The government also claimed its investigations revealed that unscrupulous elements were using Binance for money laundering, terrorist financing, currency speculation and market manipulation, distorting the Nigerian economy and weakening the Naira against other currencies
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 US Department of Justice.
Binance founder and CEO Changpeng Zhao, also known as CZ, pleaded guilty and agreed to resign. His criminal trial has been postponed to 30 April by a US court.
On Monday, the federal government of Nigeria also initiated criminal proceedings against Binance.
Among the charges levelled against Binance are allegations of non-payment of Value-Added Tax (VAT), Company Income Tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform.
The government also alleged that Binance failed to register with the Federal Inland Revenue Service (FIRS) for tax purposes and contravened existing tax regulations in the country.
