According to a report in the Financial Times, Nigeria is actively seeking information from Binance about the top 100 users in the country and all their transaction history over the past six months.
The news comes after the names of two crypto exchange executives arrested two weeks ago, Tigran Gambariyan, Binance's head of investigations, and Nadeem Anjharwala, the crypto platform's Africa regional manager, were revealed. The Wired newspaper reported today that this overlaps with the previous one.
Last month, Gambarian and Anjarwala, former US federal employees specializing in cryptocurrencies, had their passports confiscated and were held in a government facility in Nigeria's capital, Abuja. Their detention is part of a broader crackdown on cryptocurrency exchanges in Nigeria and coincides with questionable efforts by the government to revive the country's currency, the naira.
Before Gambariyan, a U.S. citizen, and Anjarwala, a dual British-Kenyan citizen, were detained, both officials accepted an invitation from the Nigerian government to discuss Binance's operations and the restrictions it has placed on the cryptocurrency exchange. . Nigeria is losing out on taxes from unregistered cryptocurrency exchanges, Nigeria's apex bank says, and Binance, which it claims is operating illegally, is “proceeding illegally from unidentified sources and users.” It was accused of facilitating a $26 billion flow of funds.
As a result, the detained executives could face charges including currency manipulation, tax evasion and illegal operations, Bloomberg reported. However, both families report that neither person has been formally charged with any criminal offense. The FT said Nigeria's anti-corruption agency was given permission to detain both Binance executives for 14 days, and the detention ended on Tuesday. A hearing seeking an extension of the court order is proposed for Wednesday.
Nigeria's request for Binance's top users in the country is the focus of negotiations between the largest crypto platform and Africa's top crypto market. The period under consideration is significant because it coincides with Nigeria's currency devaluation schedule. Meanwhile, documents reviewed by the FT reveal that Nigeria, through its national security adviser, has asked Binance to address its outstanding tax obligations.