Nigeria Levels Tax Evasion Charges at Binance After Kenyan Executive Escapes Detention

Nigerian authorities have taken a stern approach in their recent actions against cryptocurrency platform Binance.

The Federal Inland Revenue Service (FIRS) filed tax evasion charges against the company in Abuja, accusing them of failing to pay value-added tax (VAT), company income tax, and neglecting to file tax returns. Additionally, FIRS alleges that Binance facilitated customer tax evasion through their platform. Binance has yet to comment on these specific charges. Further escalating tensions, Nigerian authorities are seeking an international arrest warrant for Nadeem Anjarwalla, Binance’s former regional manager for Africa.

Anjarwalla, a British-Kenyan national, escaped custody last week after initially being detained in late February as part of a broader investigation into Binance’s Nigerian operations. Nigerian security officials are collaborating with Interpol to apprehend Anjarwalla. A representative for both Anjarwalla and Tigran Gambaryan who was also detained in February claims they were held unlawfully after their initial detention order expired on March 12.

This representative, who requested anonymity, further asserts that Anjarwalla departed Nigeria legally and was unaware of any charges against him. These developments come amidst a wider Nigerian crackdown on cryptocurrency exchanges. Earlier this month, Binance announced the cessation of all transactions and trading in the Nigerian naira (NGN) citing the government’s actions.

They claim the crackdown has increased demand for USD on the black market. Binance also halted NGN withdrawals and automatically converted existing NGN balances to Tether (USDT), a stablecoin pegged to the US dollar.