A high-ranking executive of the cryptocurrency exchange Binance has reportedly fled custody in Nigeria as authorities intensify a criminal investigation into the platform’s alleged involvement in money laundering activities.
Nadeem Anjarwalla, Binance’s regional manager for Africa, managed to escape Nigerian custody using a smuggled passport, according to statements from Nigeria’s National Security Adviser’s office on Monday.
Nigeria, known for having Africa’s largest cryptocurrency economy by trade volume, has been grappling with soaring inflation and a devaluing local currency, leading many citizens to turn to cryptocurrencies for financial transactions.
Zakari Mijinyawa, a spokesperson for Nigeria’s National Security Adviser, announced that the personnel responsible for Anjarwalla’s custody have been apprehended, and investigations are underway to determine the circumstances surrounding his escape.
Anjarwalla’s escape came to light after the Abuja-based Premium Times newspaper reported that he fled from a guest house in the capital city, taking advantage of a momentary lapse in surveillance while being allowed entry to a nearby mosque for prayers.
Anjarwalla, who holds British and Kenyan citizenship, was initially detained alongside a colleague, Tigran Gambaryan, a US citizen, on February 26 during Nigeria’s crackdown on Binance.
While Anjarwalla managed to evade custody, Gambaryan remains in detention. Both executives were scheduled to appear in court on April 4 as part of the ongoing legal proceedings.
Binance, reacting to the investigation and accusations of money laundering and terrorism financing, halted trading with the Nigerian naira currency on its platform in early March. However, authorities have yet to present evidence publicly to substantiate these claims.
In addition to the money laundering allegations, Nigeria’s tax agency has levied a four-count charge against Binance for tax evasion and complicity in facilitating customers’ tax evasion through its platform.
The escape of the Binance executive has added a new dimension to the legal saga surrounding cryptocurrency exchanges in Nigeria, prompting intensified scrutiny and efforts to address regulatory concerns in the country’s crypto ecosystem.
