Nigeria is actively seeking information from Binance regarding its top 100 users in the country and their complete transaction history spanning the past six months, according to a report from the Financial Times.
This development coincides with recent reports from Wired revealing the identities of two Binance executives who were detained two weeks ago: Tigran Gambaryan, the head of investigations at Binance, and Nadeem Anjarwalla, the crypto platform’s regional manager for Africa.
Gambaryan, a former crypto-focused U.S. federal agent, and Anjarwalla, holding dual citizenship of the U.K. and Kenya, had their passports confiscated last month and have since been held in confinement at a government facility in Abuja, Nigeria’s capital. Their detainment is part of Nigeria’s broader crackdown on cryptocurrency exchanges, which aligns with the government’s efforts to stabilize the national currency, the naira.
Before their detention, both Gambaryan and Anjarwalla responded to an invitation from the Nigerian government to discuss Binance operations and the regulatory constraints imposed on the cryptocurrency exchange.
Nigeria’s central bank expressed concerns about potential revenue loss from unregistered crypto exchanges and accused Binance of illegal operations, alleging that it facilitated “illicit flows from sources and users who we cannot adequately identify,” amounting to $26 billion. As reported by Bloomberg, the detained executives may face charges related to currency manipulation, tax evasion, and illegal operations.
However, as of today, none of the executives have been formally charged with any criminal offenses, according to their families. The Financial Times reports that Nigeria’s anti-corruption agency was granted permission to detain both Binance executives for 14 days, which concluded on Tuesday. A proposed hearing to extend the court order is scheduled for Wednesday.
In response to the increased regulatory scrutiny in Nigeria, Binance discontinued its naira (NGN) services last week.
Nigeria’s request for information on Binance’s top users marks a pivotal point in negotiations between the crypto platform and Africa’s leading crypto market. Recent local reports suggested that Nigeria’s parliament threatened to issue a warrant of arrest for Binance executives and summoned CEO Richard Teng to provide explanations regarding investigations into the company’s alleged involvement in money laundering and terror financing.
Meanwhile, documents reviewed by the Financial Times reveal that Nigeria, through its national security adviser, has requested that Binance address any outstanding tax liabilities.
