The escape from lawful custody by one of Binance’s henchmen has thrown Nigerians into shock, but the trial of the cryptocurrency platform and its official kicks off.
The escape on March 23, 2024 by the Binance Chief Executive Officer has cast doubt on the efficiency, effectiveness and loyalty of the nation’s security and its operatives.
The escape notwithstanding, the current trial of the officers and Binance, continues for allegedly undermining the economy of Nigeria and sabotaging its fiscal policies.
Binance, a company that had been banned in many countries, crept into Nigeria recently when the Central Bank of Nigeria (CBN) opened the doors to crytocurrency operators despite the controversy surrounding their operations.
Authorities had arrested the two officers, including the Chief Executive Officer (CEO), Mr Mr Nadeem Anjarwalla, who flew into the Nigeria to manipulate the situation concerning Nigeria’s accusation that Binance was manipulating the country’s foreign exchange market.
Both were promptly arrested and kept in the custody of the National Security Adviser (NSO) awaiting their trial in court but Mr Anjarwalla escaped on Friday, March 22, 2024 to the consternation of Nigerians and embarrassing the elite.
The escape caused an uproar just as the Federal Inland Revenue Service (FIRS) on March 25, 2024 filed criminal charges against the company and its officers.
Mr Zakari Mijinyawa, Head of Strategic Communication at the Office of the National Security Adviser in the Office of the National Security Adviser (ONSA) confirmed the escape on March 23, 2024 of the 38-year-old India-British citizen whom was said to have used a Kenya passport to fly out of Nigeria while his British passport remained with authorities.
Mijinyawa explained that Anjarwalla on escaped 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 Anjarwalla’s escape, the NSA’s office took immediate steps, in conjunction with relevant security agencies, as well as the international community with the intent to apprehend the suspect.
Security agencies are working with the Interpol for an international arrest warrant on the suspect, he said.
“Preliminary investigation shows that Mr Anjarwalla fled Nigeria using a smuggled passport,” he said in a statement.
“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.’’
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 the court and was scheduled to appear before the court again on 4 April.
In its reaction, Binance said that it was informed that Anjarwalla was no longer in Nigerian custody and that 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.
Nigeria’s crack down on suspected money launderers and terrorism financiers, also led to the suspicion that they were using the Binance platform for criminal activities and that over $21.6 billion was traded by Nigerians whose identities were concealed by Binance.
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 Federal Inland Revenue Service (FIRS) on March 25, 2024 formally lodged charges against Binance at the Federal High Court in Abuja in suit number FHC/ABJ/CR/115/2024 which implicates Binance with a four-count tax evasion accusation.
Aside evasion of taxes, the Federal Government also accused Binance of neglecting to register with FIRS for tax purposes and contravening existing tax regulations within the country.
One of the counts in the lawsuit pertains to Binance’s purported failure to collect and remit various categories of taxes to the federation, as stipulated by Section 40 of the FIRS Establishment Act 2007 as amended.
This section explicitly addresses the non-deduction and non-remittance of taxes, prescribing penalties and potential imprisonment for defaulting entities.
The charges outline specific instances where Binance allegedly violated tax laws, such as the failure to issue invoices for VAT purposes, thereby impeding the determination and payment of taxes by subscribers.
“Any company that conducts business exceeding N25 million annually is deemed, by the Finance Act, to be present in Nigeria,” the FIRS noted in a statement.
“According to this rule, Binance falls into that category. So, it is obligated to pay taxes like Company Income Tax (CIT) and also collect and remit Value Added Tax (VAT).
However, Binance did not adhere to these requirements, thus violating Nigerian laws and potentially facing investigation and legal action for this infraction,” FIRS alleged.
The Federal Government says it remains steadfast in its commitment to ensuring compliance with tax regulations and combating financial impropriety within the cryptocurrency sector.
By law, FIRS is empowered to assess, collect, and account for revenue accruing to the Federation and administer relevant tax laws.
Accompanying the crypto company as second and third defendants in the suit are Nadeem Anjarwalla and his colleague Tigran Gambaryan.
The Federal High Court, Abuja had on March 18, 2024 ordered Binance Holdings Limited to provide the Economic and Financial Crimes Commission (EFCC) with the comprehensive data or information of all persons from Nigeria trading on its platform.
Justice Emeka Nwite granted the interim order after ruling on the ex-parte motion moved by the EFCC’s lawyer, Mr Ekele Iheanacho.
The interim order was granted to enable the anti-graft agency unravel the alleged money laundering and terrorism financing on Binance, a crypto currency exchange platform.
The escape from custody has caused uproar in Nigeria with many many calling for heads to roll, including the sacking of the National Security Adviser (NSO)
Woye on his X handle @woye1 advised President Bola Tinubu to suspend all the persons involved in the escape to allow unfettered investigation and should have been watch-listed at the airport with Nigerian Immigration Service.
He said: “Idiscipline must be punished, approach the Federal High Court so that Interpol can track him; the other guy should be moved from safe house to yellow house.’’
Mr Alex Usman, an activist, said that the escape shows the level of corruption in the Nigeria’s system.
“The government must use this opportunity to clean the security system. The government should issue undertaking to all members of security operatives and those not ready to serve should voluntarily resign,’’ he said.
Meanwhile, Minister of Information and National Orientation, Mr Mohammed Idris, has assured Nigerians that there was no hiding place for Anjarwalla, insisting that the International Police(Interpol) were currently on his trail.
According to Idris, since Binance is an international firm, there is no way the culprit will evade arrest and be made to conform to the laws and financial regulations of Nigeria.
