Binance Faces Pressure in Nigeria: Executives Detained, Top User Data Demanded

Nigeria Demands User Data and Transaction History from Binance Amid Regulatory Crackdown

Binance Executives Detained in Nigeria

In a recent development, Nigeria is actively pursuing information from Binance, the world’s largest cryptocurrency exchange, regarding its top 100 users in the country and their transaction history over the past six months, as reported by the Financial Times. This news coincides with the revelation of the identities of two Binance executives who were detained in Abuja, Nigeria’s capital, two weeks ago: Tigran Gambaryan, head of investigations, and Nadeem Anjarwalla, regional manager for Africa, according to a Wired report.

Nigeria’s Efforts to Revive the Naira and Combat Illegal Crypto Activities

The detainment of Gambaryan, a U.S. citizen, and Anjarwalla, a dual citizen of the U.K. and Kenya, is part of Nigeria’s broader crackdown on cryptocurrency exchanges, which coincides with the government’s questionable attempts to revive the naira, the country’s national currency. The executives responded to an invitation from the Nigerian government to discuss Binance’s operations and the restrictions imposed on the exchange, only to have their passports confiscated and be held in confinement at a government facility.

Accusations and Potential Charges Against Binance

Nigeria’s central bank has raised concerns about the loss of tax revenue from unregistered crypto exchanges and accused Binance of operating illegally and facilitating “illicit flows from sources and users who we cannot adequately identify,” amounting to $26 billion. As a result, the detained executives may face charges related to currency manipulation, tax evasion, and illegal operations, according to a Bloomberg report. However, as of Tuesday, the executives’ families claim that they have not been formally charged with any criminal offenses.

Binance’s Response and Discontinuation of Naira Services

In response to the heightened regulatory scrutiny and contentious negotiation tactics in Nigeria, Binance has discontinued its naira (NGN) services last week. The request for Binance’s top users in the country has become the new focal point in negotiations between the largest crypto platform and Africa’s top crypto market.

Nigeria’s Demands and Threats Against Binance

Local reports suggest that Nigeria’s parliament has threatened to issue a warrant of arrest for Binance’s executives and summoned CEO Richard Teng to provide explanations regarding investigations into the company’s alleged involvement in money laundering and terror financing. Additionally, documents reviewed by the Financial Times reveal that Nigeria, through its national security adviser, has requested that Binance address any outstanding tax liabilities.

As the situation unfolds, the crypto community eagerly awaits the outcome of the negotiations between Binance and the Nigerian government, as well as the fate of the detained executives.