To maintain financial accountability and protect Nigeria's economic stability, the Federal Inland Revenue Service (FIRS) has brought tax evasion allegations against Binance, a prominent cryptocurrency trading platform.
A lawsuit was submitted to the Federal High Court in Abuja, naming Binance and two of its prominent figures, Nadeem Anjarwalla and Tigran Gambaryan, as defendants for their supposed involvement in committing tax infractions.
Binance is accused of failing to pay Value-Added Tax (VAT) and company income tax, neglecting to submit tax returns, and allegedly facilitating tax evasion by its customers. Recent reports indicated that Anjarwalla fled from the Abuja guest house where both individuals were being held.
"We've been informed that Nadeem is no longer in Nigerian custody. Our top priority remains the safety of our staff, and we're actively cooperating with Nigerian authorities to address this matter swiftly," stated a spokesperson for Binance to CNBC.
According to reports, Nigeria is discussing obtaining an international arrest warrant for Anjarwalla with Interpol. The National Security Agency has not responded to CNBC's inquiry regarding this development.
Statement from Nadeem and Tigran's families
The families of the two employees have chosen not to provide comments at this juncture. However, they released statements on March 20 after a hearing where Nigerian authorities extended their detention.
Elahe Anjarwalla, Nadeem's Wife, expressed profound sadness that he would not be present for their son's first birthday celebration.
"Nadeem lacks the authority to make significant decisions at Binance, and I earnestly implore the Nigerian authorities to permit him and Tigran to return home while discussions with Binance continue. I also urge the British and Kenyan governments to intensify efforts to facilitate Nadeem's return to us," she stated.
Yuki Gambaryan, Tigran's wife, expressed difficulty explaining her husband's absence to their two children.
"Tigran is widely respected for his contributions to law enforcement, with many of his colleagues affirming that his unwavering dedication plays a crucial role in ensuring the integrity of cryptocurrencies," she remarked.
"Kindly allow him to return home to continue his valuable work. The longer our husbands are separated from their families, the more challenging it becomes for us to manage our daily routines."
The Detention Story
Gambaryan and Anjarwalla were detained in Nigeria on February 26, although they were not initially charged with any offenses. The Abuja government accused their employer of disrupting the country's local currency.
The Nigerian naira has been among the poorest-performing currencies globally, depreciating by almost 70% against the U.S. dollar over the past year. In response to the plummeting currency and a soaring inflation rate of nearly 30% two months ago, locals have increasingly turned to cryptocurrencies to safeguard their savings.
However, Binance's difficulties in Nigeria stem less from a crackdown on cryptocurrencies and more from Abuja's perception of the company as a hostile actor in the industry.
Nigeria has raised two primary concerns regarding Binance: the lack of transparency regarding money flow within the exchange and the alleged facilitation of speculation on the naira's price through its peer-to-peer marketplace.
Binance Accused, Stops Transactions
The government accuses Binance of laundering money, with approximately $26 billion of untraceable funds passing through the platform. Additionally, authorities in Abuja claim that traders on Binance's P2P platform conspired to manipulate the exchange rate while trading the local currency for U.S. dollar-pegged stablecoins like tether.
This is a different instance of Abuja's discontent with Binance. In July 2023, Nigeria's Securities and Exchange Commission released a circular cautioning against engaging with the exchange, warning of a "high level of risk" and the potential for "total loss of investments" for any investors involved with Binance.
Earlier this month, Binance ceased all transactions and trading involving Nigeria's local currency. They announced that any remaining balances would be automatically converted into tether, a cryptocurrency stablecoin linked to the value of the U.S. dollar.