The Nigerian government is intensifying pressure on cryptocurrency exchange Binance, seeking information on its top 100 users in the country and all transaction history from the past six months. This demand comes as the detention of two senior Binance executives enters its third week, with negotiations unfolding between the government and the cryptocurrency platform, a report in Financial Times stated.
Nigeria considers Binance a critical factor undermining its efforts to stabilize the national currency, the naira. The requested transaction history corresponds with the timeline of Nigeria’s currency devaluation. Documents obtained by the Financial Times reveal that Nigeria’s national security adviser’s office is also urging Binance to address any outstanding tax liabilities.
The country’s focus on Binance aligns with broader efforts to mitigate its worst economic crisis in three decades and restore confidence in its depreciating currency. President Bola Tinubu’s administration has implemented market-friendly reforms and devalued the currency, resulting in inflation reaching a nearly three-decade high of 29.9 percent. Cryptocurrency platforms, particularly Binance, have emerged as alternative channels determining unofficial exchange rates for the Nigerian currency.
Last month, Nigerian authorities blocked web access to cryptocurrency exchanges and detained two Binance executives who were in Abuja to discuss the regulatory crackdown. In response, Binance ceased trading the naira on its platform.
The detained executives, Nadeem Anjarwalla and Tigran Gambaryan, are integral to Binance’s Africa operations. Anjarwalla, a UK citizen, serves as Binance’s regional manager for Africa, while Gambaryan, a former US Internal Revenue Service special agent, is the head of Binance’s financial crime compliance.
Currently held at a guest house in Abuja, adjacent to the national security adviser’s office, both executives had their phones and passports seized upon detention. Binance only reestablished contact with them on March 5, a week after their apprehension. Neither executive has been charged with any offense.
While their detention is described by some as akin to “hostages,” sources note that they are being well treated, possibly due to their status as citizens of close western allies. In a statement, Binance expressed collaboration with Nigerian authorities to bring the executives back to their families.
A court order permits the Economic and Financial Crimes Commission, Nigeria’s anti-corruption agency, to detain both executives for 14 days, ending on Tuesday. A hearing on an extension of the court order, initially scheduled for Tuesday, has been postponed to Wednesday.
Despite ongoing negotiations, the reasons for the executives’ detention remain unclear. Elahe Anjarwalla, Nadeem’s wife, expressed frustration at the perceived lack of action from the British government. Binance is facing accusations of facilitating currency speculation, with authorities suggesting a potential $10 billion fine as a starting point in negotiations.
The office of the national security adviser urged patience, assuring that outcomes would be made public in due course. The British Foreign Office confirmed support for the detained UK citizen, while the US Embassy in Abuja acknowledged reports of a detained US citizen but refrained from further comments. Critics argue that blaming Binance is an implicit acknowledgment of the government’s skepticism about granting the market complete autonomy.
