An executive of global cryptocurrency exchange Binance has escaped detention in the West African country, authorities said in Nigeria, as a criminal investigation was launched against the platform accused of using it for money laundering.
KADUNA, Nigeria — An executive at cryptocurrency exchange Binance has escaped custody in Nigeria, authorities said Monday, as a criminal investigation was launched against the platform accused of using it for money laundering.
Nadeem Angarwala, Binance's regional director for Africa, “fled Nigeria using a smuggled passport,” the Nigerian National Security Advisor's Office said in a statement, calling for “any information that can assist law enforcement agencies in apprehending the suspect.”
Nigeria is the largest crypto economy in Africa in terms of trade volume with many citizens using cryptocurrencies to hedge their finances against rising inflation and falling local currency.
Angarwala, who has dual British and Kenyan citizenship, has been detained in Nigeria with another colleague since February 26 when they arrived in the country following a crackdown on the cryptocurrency platform. His colleague Tigran Gambaryan, an American citizen, remains in captivity.
Binance suspended all trading in the Nigerian naira on its platform in early March after authorities accused it of using it for money laundering and terrorist financing – without providing evidence publicly.
It is not clear how Angarwala escaped from custody. The Abuja-based Premium Times newspaper, which reported on his escape, reported that he escaped from a guesthouse in the capital after guards took him to a nearby mosque to pray.
“The personnel responsible for detaining the suspect have been arrested, and a comprehensive investigation is underway to uncover the circumstances that led to his escape from lawful custody,” Zachary Miginyawa, spokesman for Nigeria’s Office of the National Security Adviser, said in a statement. .
The Binance executives have been detained by court order and are scheduled to appear in court on April 4, the statement said.
Meanwhile, the Nigerian Tax Agency has filed a four-count tax evasion charge against the cryptocurrency exchange, also accusing it of “complicity in helping customers evade taxes through its platform.”
“The charges also detail specific instances where Binance allegedly violated tax laws, such as failing to issue invoices for value-added tax purposes, thereby obstructing the determination and payment of taxes by subscribers,” the local Federal Internal Revenue Service said in a statement.
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