Binance Executive Remains in Nigerian Custody Despite Court Order for Release

Hanaan Chisty, a Binance executive, remains in the custody of the Economic and Financial Crimes Commission (EFCC) in Nigeria despite a court order for his release. The EFCC has cautioned about a flight risk in a cryptocurrency money laundering case involving Chisty. The agency asserts that Chisty is a flight risk and has opposed his release, even though a court has mandated it.

The case underscores the ongoing tensions between cryptocurrency companies and regulators in Nigeria, as the EFCC continues to investigate alleged financial crimes in the crypto sector. Chisty's colleague, Tigran Gambaryan, was also detained in Nigeria in February 2024, but he later fled to Kenya. Authorities are now working to extradite Gambaryan, but Kenyan officials have denied reports of his arrest.

Meanwhile, Gambaryan is still in custody in Nigeria, having pleaded not guilty to the charges brought against him, Binance, and his escaped colleague by the EFCC. The court will rule on Gambaryan's bail request on May 17, 2024.

Why this matters: The case highlights the challenges faced by cryptocurrency exchanges operating in countries with strict financial regulations. It also emphasizes the need for clear legal frameworks to govern the crypto industry and protect investors from potential fraud and money laundering.

The Nigerian government is working with Interpol to extradite another Binance executive, Nadeem Anjarwalla, who escaped from custody in Nigeria. Anjarwalla and another Binance colleague were being held by Nigerian authorities on suspicion of Binance engaging in money laundering schemes in the country. Anjarwalla, who holds dual British and Kenyan citizenship, escaped custody on March 22 after being taken to a nearby mosque for Ramadan prayers.

The Nigerian government is now partnering with Interpol, the FBI, and the British and Kenyan governments to secure Anjarwalla's arrest and extradition. The Binance executives are due to be tried by the Federal High Court in Abuja on Thursday, with Anjarwalla to be tried in absentia.

The EFCC has accused Gambaryan and Anjarwalla of hiding the source of $35.4 million in alleged illegal activities. Gambaryan's lawyer argued that the EFCC lacks credible evidence to support its claims, while the EFCC lawyer cited concerns about Gambaryan's ties to Nigeria and potential flight risk. The case falls under Nigeria's Money Laundering Prevention and Prohibition Act.

Key Takeaways

• Binance exec Hanaan Chisty detained in Nigeria despite court order for release
• Colleague Tigran Gambaryan detained, fled to Kenya, now facing extradition
• Binance exec Nadeem Anjarwalla escaped custody, being sought by authorities
• EFCC accuses Gambaryan and Anjarwalla of hiding $35.4M in alleged illegal activities
• Case highlights tensions between crypto firms and regulators in Nigeria