Binance executive Nadeem Anjarwalla is currently facing extradition from Kenya after escaping custody in Nigeria. The Nigerian government is working in collaboration with Interpol and Kenyan authorities to bring Anjarwalla back to face charges related to the alleged manipulation of the Naira and the facilitation of illicit funds transactions through Binance.
Anjarwalla managed to escape from Nigeria by boarding a Middle Eastern airline from Abuja, despite his U.K. passport being held by Nigerian authorities. He used a Kenyan passport to board the flight, prompting investigations into how he obtained the passport without other travel documents. There are ongoing interrogations involving various agencies like the police, the military, the Department of State Services, and the National Intelligence Agency.
Meanwhile, another Binance executive, Tigran Gambaryan, remains in custody in Nigeria and awaits further legal proceedings. Gambaryan has pleaded not guilty, and his wife has initiated a petition to bring him back to the United States. Binance argued that Gambaryan held no decision-making power in the company to secure his release.
In response to the situation, Binance suspended all naira transactions on March 5, effectively exiting the Nigerian market. The exchange also removed all naira trading pairs from its peer-to-peer platform. This move followed efforts by the Nigerian government to crack down on suspected money laundering activities, specifically targeting individuals allegedly using Binance for illicit purposes.
Cryptocurrency websites, including Binance, had become popular platforms for trading the Nigerian naira amidst the country’s ongoing challenges with chronic dollar shortages. Nigeria pointed fingers at Binance for exacerbating its currency woes, leading to the Economic and Financial Crimes Commission (EFCC) taking control of the investigation and bringing charges against Binance Holdings Limited, Gambaryan, and Anjarwalla.
Olayemi Cardoso, the Governor of the Central Bank of Nigeria, had previously expressed concerns about crypto exchanges in the country facilitating illicit transactions amounting to over $21.6 billion. This situation has brought to light the challenges and risks associated with cryptocurrency exchanges operating in Nigeria and has raised questions about the regulatory framework surrounding these platforms.
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