Speaking against the backdrop of a bribery allegation made by the Binance Chief Executive Officer, Richard Teng, in a blog post published by the New York Times, top officials of the President Bola Tinubu administration described as false and unfounded the accusation that some individuals demanded $150m bribe in cryptocurrency to settle the criminal charge against the firm.

The NYT on Tuesday reported that on a trip to Nigeria in January, Tigran Gambaryan, a compliance officer with the exchange, received an unsettling message: The company had 48 hours to make a payment of roughly $150m in crypto.

Gambaryan, a former United States law enforcement agent, understood the message as a request for a bribe from someone in the Nigerian government.

The incident allegedly occurred before Gambaryan and a colleague, Nadeem Anjarwalla, were arrested and detained on the orders of the National Security Adviser. Anjarwalla subsequently escaped and has been traced to Kenya.

Gambaryan has been held in Kuje Correctional Facility in  the last four weeks, after he was transferred there from a safe house on April 8.

Both Binance and Gambaryan are facing trial for tax evasion and money laundering.

Their trial was scheduled to begin last Thursday, but the court postponed it until May 17.

Gambaryan reportedly wrote a three-page report describing the payment request and gave it to Binance’s lawyers, two people familiar with the report told NYT.

He also reportedly alerted contacts in the Nigerian government and recounted the incident to them.

Binance had denied that Gambaryan had any “decision-making power” in the company.

The case is the latest legal headache for Binance, which agreed to a $4.3bn fine last year to settle charges by the US government that it allowed criminal activity to flourish on its platform.

In April, the company’s founder, Changpeng Zhao, was sentenced to four months in prison for his role in those violations.

The spokesman for the ONSA, Zakari Mijinyawa, said in a text message to NYT that the Federal Government would make its case “on the strength of the facts and evidence, in accordance with due process.”

We are confident that Nigeria has a good case. Binance equally will have every opportunity under the rule of law to make its case and see justice delivered,” Mijinyawa said.

In his post, Teng laid out the history of Binance’s engagement with Nigeria, which has become a hotspot for the crypto industry.

It has the second-highest rate of crypto adoption in the world behind India, according to Chainalysis, a data firm.

In 2023, the financial regulators issued a statement directing Binance to stop soliciting investors in Nigeria.

Binance halted its advertising in the country and offered to meet with government officials, Teng said.

On January 8, Teng said Gambaryan and a group of Binance employees met with lawmakers, but the meeting was contentious

The lawmakers, he wrote, read aloud a list of accusations against Binance, including tax violations.

They also threatened to pursue an arrest warrant for Teng, the article said.

As the Binance employees left the meeting, Teng wrote they were approached by “unknown persons” who suggested that they make a payment to settle the allegations.

Later, a local lawyer representing Binance spoke with someone purporting to be an agent of the House committee, Teng further claimed in his article, adding that the purported agent demanded “a significant payment in cryptocurrency to be paid in secret within 48 hours to make these issues go away,”

The amount was roughly $150m, four people familiar with the matter said, according to a Bloomberg report, quoting NYT sources.

“Our team grew increasingly concerned about their safety in Nigeria and immediately departed. We, of course, declined the payment demand via our counsel, not viewing it to be a legitimate settlement offer,” Teng wrote in his post.

Teng claimed that Binance had received assurances that  Gambaryan would be safe if he returned to Nigeria.

According to him, a company adviser with deep local connections recommended that Binance officials meet with the ONSA.

However, a prosecutor with the Economic and Financial Crimes Commission, Ekele Iheanacho, dismissed Teng’s allegation, vowing to prosecute the case to the end.

Iheanacho, one of the lawyers prosecuting the Binance officials, said, ‘’Nobody demanded any money, the case is being taken to a logical conclusion. He’s making it up although I am not aware of any such allegations. As far as I am concerned, the charges are going on and we are making every effort to ensure that we get to a logical end.’’

The Media Adviser to the Attorney-General of the Federation, Kamarudeen Ogundele, directed inquiries to the information minister and the Presidency.

He said “You can call the minister of information or president’s spokesperson. This allegation is not court-related. It is not an allegation against the Attorney-General of the Federation.

The information minister, Mohammed Idris, could not be reached for comment as calls to his phone rang out.

A top official in the ONSA, who is close to the probe, said, “Did he (Binance CEO) mention a name? Since he didn’t mention a name, why should anyone be worried? Why should anyone waste their time if somebody made an unfounded allegation but could not mention any name?”

A top EFCC chief, who is close to the trial, also said, “If someone would say something like this, he should have the capacity to mention the people. It’s not worth our time, anybody can say anything but as long as they can’t substantiate it, it’s a waste of time. He should mention names, if not, all that he’s saying is rubbish.”

Two top officials at the EFCC accused the Binance CEO of blackmailing the Federal Government.

They noted that Teng’s claim was frivolous, describing his action as ‘’the modus operandi of foreign personalities and corporations facing legal charges in Nigeria and other African countries.’’

One of the sources noted, “It is not only the EFCC that is prosecuting or investigating Binance over its atrocities against Nigeria. There are allegations of money laundering, and tax evasion, amongst others, against the company, and several federal government agencies are probing the company’s activities in the country.

“But the latest comment about alleged request for bribery by the Binance CEO is a blackmail against the Federal Government. That is the modus operandi of international corporations and individuals facing charges in Nigeria or anywhere else in Africa.”

A senior official noted, “It is the tradition of these international players to blackmail the country whenever they’re caught. What is the correlation between the alleged request for bribes and the allegations brought against Binance?

Government sources familiar with the case who spoke on condition of anonymity because they were not authorised to speak on the matter confirmed the development to our correspondent on Sunday night.

One of the sources said, “Binance executive, Nadeem Anjarwalla, has been arrested by the Kenya Police Service, and he would be extradited to Nigeria this week by INTERPOL.”

Another source noted, “As we had said before that Anjarwalla would be extradited, he has been arrested in Kenya, and he’ll be extradited to Nigeria this week.”

the Federal Government had traced Anjarwalla to Kenya, following his escape from lawful custody in Nigeria.

Following the development, the Economic and Financial Crimes Commission, the International Criminal Police, the Nigeria Police Force, and the Kenyan Police Service have deepened talks to quicken Anjarwalla’s extradition.

Anjarwalla, whose cover has now been blown, went into hiding immediately after he landed in Kenya.

“We have found him. We know where he is; he is in Kenya, and we’re working with the authorities to bring him back to Nigeria.

“All hands are on the deck, the government and all the security agencies are working hard in conjunction with the Kenyan authorities and INTERPOL, to ensure his return to Nigeria to face the charges brought against him,” the report had quoted a source as saying.

Meanwhile, the EFCC Chairman, Ola Olukoyede, had in the March edition of its bulletin titled, “EFCC Alert,” onfirmed that the commission was working in conjunction with the International Criminal Police Organisation, the United States’ Federal Bureau of Investigation, the governments of the United Kingdom, Northern Ireland, and Kenya to extradite Anjarwalla.

Olukoyed said, “The takeover of the prosecution of Binance chiefs by the commission is no less a strong message in the direction of EFCC’s resolve to hedge in distortions and disruptions in the country’s forex market.

“Tax evasion, currency speculation, and money laundering to the tune of $35,400,000 and are at the foundation of the Commission’s five counts against Binance Holdings Limited, Tigran Gambaryan and Nadeem Anjarwalla, the company’s chief executives.

“While Gambaryan is currently in the Commission’s net, the process of extraditing the fleeing Anjarwalla is revving in full swing. Involved in partnership with the EFCC to nick Anjarwalla in flight are the International Criminal Police Organisation, the United States Federal Bureau of Investigation, the governments of the United Kingdom, Northern Ireland, and Kenya as the clock winds down to his arraignment in absentia alongside the company and Gambaryan.”

Gambaryan, in an originating motion marked: FHC/ABJ/CS/356/24 sought a declaration that his detention and seizure of his international travel passport, contravened Section 35 (1) and (4) of 1999 Constitution.

He urged the court to order the NSA and the EFCC to release him from their custody and return his international travel passport with immediate effect.

Gambaryan also sought an order of perpetual injunction restraining the respondents and their agents from further detaining him in relation to any investigation into or demands from Binance.

He also urged the court to order the respondents to issue a public apology to him.

Gambaryan averred that he was in Nigeria alongside fleeing Nadeem Anjarwalla to honour the invitation of the ONSA and EFCC to discuss issues relating to Binance in Nigeria.

Anjarwalla escaped from the guest house where he and Gambaryan were being held He argued that he had not committed any offence during the meeting, and neither was he informed in writing of any offence he personally committed in Nigeria at any other time.

“The only reason for his detention is because the government is requesting information from Binance and making demands on the company,” he added.

The fleeing Anjarwalla also filed a similar suit, marked: FHC/ABJ/CS/355/24.

At the proceedings on Thursday, T.J. Krukrubo (SAN) appeared for the plaintiffs, while the respondents had no representation.

Krukrubo informed the court that the respondents were served two days ago.

Shortly after that, he announced to the court that he was withdrawing from the matter as counsel for the fleeing Anjarwalla.

He did not give reasons for his withdrawal.

The trial judge, Justice Inyang Ekwo, adjourned the matter till April 8.

The charges were filed at the Federal High Court in Abuja by the Federal Inland Revenue Service.

In the suit with number: FHC/ABJ/CR/115/2024, FIRS implicated Binance with four tax evasion accusations adding that it was a decisive move aimed at upholding fiscal responsibility and safeguarding the economic integrity of the country.

Joined with the crypto company as second and third defendants in the suit are Tigran Gambaryan and Nadeem Anjarwalla, bothsenior executives of Binance currently under the custody of the Economic and Financial Crimes Commission.

The charges levied against Binance include non-payment of Value-Added Tax, Company Income Tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform.

In the suit, the Federal Government also accused Binance of failure to register with FIRS for tax purposes and contravening existing tax regulations within the country.

One of the counts in the lawsuit pertains to Binance’s alleged failure to collect and remit various categories of taxes to the federation as stipulated by Section 40 of the FIRS Establishment Act 2007 as amended.

Section 40 of the Act explicitly addresses the non-deduction and non-remittance of taxes, prescribing penalties and potential imprisonment for defaulting entities.

The charges further detail specific instances where Binance purportedly violated tax laws, such as failing to issue invoices for VAT purposes, thus obstructing the determination and payment of taxes by subscribers.

“Any company that transacts business in excess of N25 million annually is deemed by the Finance Act to be present in Nigeria.

“According to this rule, Binance falls into that category. So, it has to pay taxes like Company Income Tax (CIT) and also collect and pay Value Added Tax (VAT).

“But Binance did not do this properly. So, the company broke Nigerian laws and could be investigated and taken to court for this infraction,” Adekanmbi said.

FIRS, by the law setting it up and various others, is empowered to assess, collect and account for revenue accruing to the Federation and administer relevant tax laws.

Binance pleaded guilty to flouting anti-money laundering laws in the United States in late 2023, settling for a plea bargain that cost the company $ 4.3 billion.

In February, the Federal Government detained the two senior executives of Binance.

The arrest came amidst efforts by the government to rein in speculation on the naira by cracking down on cryptocurrency exchanges.

The charges against Binance include non-payment of Value-Added Tax, Company Income Tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform.

Anjarwalla, on Friday, reportedly escaped from the Abuja guest house where he and his colleague were being held, Premium Times reports.

He was said to have escaped after some guards on duty escorted him to a nearby mosque for prayers.

The British national, who also holds Kenyan citizenship, is suspected to have departed Abuja via a Middle East airline.

How Anjarwalla boarded an international flight despite his British passport, which he used to enter Nigeria, being held by Nigerian authorities remains unclear.

Premium Times reports that authorities are also working to unravel his intended destination to get him back into custody.

An Immigration official said the Binance executive fled Nigeria on a Kenyan passport.

The official disclosed that the authorities are working on unravelling how he obtained the passport, given the fact that he had no other travel document (apart from the British passport) on him when he was arrested.

According to another insider, the two officials were detained in a “pleasant guest house” and granted numerous privileges, such as access to telephones. Anjarwalla is suspected to have taken advantage of this opportunity to plan his escape.

The Head of Strategic Communication at the Office of the National Security Adviser, Zakari Mijinyawa, could not confirm the incident when contacted on Sunday night.

Binance, a cryptocurrency exchange platform, was accused of exploiting the Nigerian currency, Naira, leading to its free fall in value.

The company is, in addition, facing allegations of terrorism financing, money laundering and tax invasion, among others.

Nigeria is one of the largest peer-to-peer crypto markets in the world. Between July 2022 and June 2023, crypto transactions in the country reached $56.7bn, according to Chainalysis.

But the company, in a statement on Tuesday, advised users to withdraw NGN, trade their NGN assets or convert NGN into crypto.

The statement read, “Users are encouraged to withdraw NGN, trade their NGN assets or convert NGN into crypto prior to the discontinuation of these NGN services.

“From 2024-03-08 08:00 (UTC), any remaining NGN balances in users’ Binance accounts will be automatically converted to USDT based on the conversion rate below.

Binance will not support deposits of NGN after 2024-03-05 14:00 (UTC). Withdrawals of NGN will not be supported after 2024-03-08 06:00 (UTC).

“After 2024-03-08 08:00 (UTC), Binance will convert any remaining NGN balances in users’ Spot and Funding wallets into USDT on behalf of users at a ratio of 1 USDT = 1,515.13 NGN.

Please note that the conversion rate is calculated based on the average closing price of the USDT/NGN trading pair on Binance Spot in the last seven days.

“The conversion may take approximately up to 24 hours or longer. USDT tokens will be credited to users’ Spot wallets thereafter, and users can confirm receipt of the tokens via the Convert History page.

“If users hold less than 0.00000001 USDT worth of NGN in their Spot and Funding wallets, they will each receive 0.00000001 USDT in their Spot wallets after the conversion.”

The PUNCH had last week reported that the Federal Government allegedly detained at least two senior executives of Binance, a crypto currency exchange company.

According to a report by Financial Times, both executives flew into Nigeria last week following a ban on their website and were arrested by officials of the office of the National Security Adviser and their passports seized.

The arrest came amidst efforts by the government to rein in speculation on the naira by cracking down on cryptocurrency exchanges.

Recently, the government through the Nigerian Communications Commission blocked the online platforms of Binance and other crypto firms to avert what it considers continuous manipulation of the forex market and illicit movement of funds.

It also sent operatives of the Economic and Financial Crimes Commission to arrest Bureau De Change operators at the Popular Wuse Zone 4 in Abuja.

On Monday, the executives of the foreign firm were expected to appear before the House Committee on Financial Crimes but they instead sent their lawyers to represent them.

They will be joining Obi Asika, who returns as a judge from the previous season.

Speaking on the introduction of new judges for the new season, the Executive Head, Content and West Africa Channels at MultiChoice Nigeria, Busola Tejumola said, “We could not think of a better trio to be the season’s judges than Obi Asika, D’banj, and Simi. The three of them combined bring decades worth of experience in the music and entertainment business, as well as individual mastery of their crafts. We have no doubt that they will keep the viewers entertained in what will be a spectacular season!”

D’banj expressed his excitement at being one of the judges this season saying, “I was out of the country when I found out that I was going to be a judge for this season of Nigerian Idol and I couldn’t contain my excitement. I’m coming in with my own strategy so viewers should expect a bang.”

On her part, Simi said, “I’ve always loved the idea of being a judge and I think it’s a fun thing to do. I plan to be very honest and have fun and hopefully gain inspiration from those that come on the show.”

Returning judge Obi Asika added, “I will be looking for special talents and new faces this year. I’m also excited to work with the rest of the judges this season, and I will be very fair and real to every contestant just like I was last year.”

In the sixth season of Nigerian Idol, Kingdom Kroseide emerged winner after months of an intense musical contest involving over 10,000 hopefuls from across the country, and over 16 million votes recorded at the finale. He won an N30m cash prize and N20m in other prizes.

The headline sponsor of Nigerian Idol season 7 is Bigi Drinks and the co-headline sponsor is Binance.

The UK’s financial regulator, the Financial Conduct Authority (FCA) has ruled that the firm cannot conduct any “regulated activity” in the UK.

It also issued a consumer warning about Binance, advising people to be wary of adverts promising high returns on crypto-asset investments. The regulator also stressed that no entity in the Binance Group holds any form of authorisation, registration or licence to conduct a regulated activity in the UK.

Binance, in response, has said the FCA notice would have no “direct impact” on the services it provides from its website. Binance’s existing crypto exchange is not UK-based so despite the FCA ruling, there will be no impact on British residents who use the website to purchase and sell cryptocurrencies.

The UK’s FCA does not regulate cryptocurrencies but requires exchanges to register with them. So since Binance has not registered with the FCA it is, therefore, is not allowed to operate an exchange in the UK.

Binance is an online centralised exchange that offers users a range of financial products and services, including purchasing and trading a wide range of digital currencies, as well as digital wallets, futures, securities, savings accounts and even lending.

This is not the first time that Binance has come under scrutiny by regulators over its global operations. In the US, one of the firm’s entities – Binance Holdings – has been the subject of a probe by the US Securities and Exchange Commission (SEC), specifically by its officials dealing with money laundering and tax offences, according to Bloomberg.

The company is currently based in the Cayman Islands. It was previously based in Malta.