Crypto boss escapes custody with smuggled passport

The logo for the crypto exchange Binance is displayed on a screen on 6 June, 2023 in San Anselmo, California (Getty Images)

A boss of a leading crypto exchange has escaped custody in Nigeria using a smuggled passport, according to local authorities.

Binance manager Nadeem Anjarwalla, who heads the firm’s Africa division, was arrested last month as part of an investigation into alleged money laundering taking place on the platform.

The office of Nigeria’s National Security Adviser called for “whatever information that can assist law enforcement agencies to apprehend the suspect”.

Nigeria is Africa’s largest crypto economy in terms of trade volume, with many citizens using cryptocurrency to hedge their finances against surging inflation and the declining local currency.

Mr Anjarwalla, who holds dual British and Kenyan citizenship, had been detained in Nigeria along with his US colleague Tigran Gambaryan since 26 February when they arrived in the country following a crackdown on the crypto platform. Mr Gambaryan remains in captivity.

Binance stopped all trading with the Nigerian naira currency on its platform in early March after authorities accused it of being used for money laundering and terrorism financing - without providing evidence publicly.

The Independent has contacted Binance for comment on the allegations.

It was not clear how Mr Anjarwalla fled custody. The Abuja-based Premium Times newspaper, which broke the news of his escape, reported that he fled from a guest house in the capital city after guards led him to a nearby mosque for prayers.

“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,” Zakari Mijinyawa, spokesman for the office of Nigeria’s National Security Adviser said in a statement.

The Binance executives were being detained on court order and are due to appear in court on 4 April, the statement said.

Nigeria’s tax agency, meanwhile, filed a four-count charge on tax evasion against the crypto exchange, accusing it also of “complicity in aiding customers to evade taxes through its platform”.

“The charges further detail specific instances where Binance purportedly violated tax laws, such as failing to issue invoices for VAT purposes, thus obstructing the determination and payment of taxes by subscribers,” the local Federal Inland Revenue Service said in a statement.

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The arrests come amid a record-breaking rally for the crypto market, with bitcoin hitting a new all-time high this week.

Binance is the world’s biggest crypto exchange in terms of trade volume, processing billions of dollars each day.

The company is also facing a ban in the Philippines after its operations were flagged by the country’s Securities and Exchange Commission.

Additional reporting from agencies.