Allegedly Found: Former Binance Executive Tracked Down in Kenya

17 views 2:56 pm 0 Comments May 15, 2024

A Binance official who escaped Nigerian custody last month has been discovered in Kenya. Nadeem Anjarwalla, a British-Kenyan serving as the cryptocurrency company’s regional manager for Africa, managed to flee after an extended period of detention in Nigeria alongside another executive. Recent reports indicate that he has been located in Kenya and is now facing extradition back to Nigeria, with both governments collaborating on the repatriation process, potentially within the upcoming week.

Following their arrival in Nigeria in February, Anjarwalla and Binance’s head of financial crime compliance, Tigran Gambaryan, were apprehended amidst mounting regulatory scrutiny on the cryptocurrency industry in Africa’s largest economy. Nigerian authorities have alleged that Binance was operating unlawfully in the country, with the Federal Inland Revenue Service (FIRS) accusing the company of various financial infractions such as non-payment of value-added tax, company income tax, failure to submit tax returns, and facilitating tax evasion by customers through its platform. The company and its executives are further implicated in charges of tax evasion and money laundering.

While Gambaryan, a U.S. citizen, has already faced legal proceedings, his legal representative has argued that he had no authoritative role within Binance to represent the company in legal matters and thus cannot enter a plea until the firm itself has been officially served. Both executives took legal action against the Nigerian government last month, filing a lawsuit alleging human rights violations and petitioning the Federal High Court for their release, the return of their passports, and an official apology.

In response to the regulatory challenges posed by Nigeria and other jurisdictions, Binance has been actively strengthening its compliance measures. CEO Richard Teng recently emphasized the company’s shift towards a more robust compliance framework, distancing itself from its previous “better to ask forgiveness than permission” approach during the early stages of operation. Teng highlighted the company’s commitment to sustainability and adherence to regulatory standards, signaling a maturation in its operational ethos.

Moreover, Binance reached a settlement in November last year, agreeing to pay a substantial $4.3 billion fine to resolve a federal case. The former CEO, Changpeng Zhao, pleaded guilty to lapses in implementing adequate anti-money laundering controls and agreed to step down from his position. Zhao is awaiting sentencing next week, facing a potential sentence of up to 18 months in prison.

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