Nigeria is actively pursuing legal proceedings against a major cryptocurrency exchange, particularly focusing on the case of Nadeem Anjarwalla, a British-Kenyan national who previously served as the exchange’s regional manager for Africa. Anjarwalla fled to Kenya in March after he had been detained alongside Tigran Gambaryan, a US citizen. Their detention occurred in February 2024, during a visit to Nigeria where they were addressing concerns regarding the exchange’s role in the decline of the Nigerian naira. Following the arrest, the Economic and Financial Crimes Commission (EFCC) in Nigeria charged the exchange and several executives with multiple counts of money laundering.
The situation escalated further when Anjarwalla escaped custody while his UK passport was still held by Nigerian authorities. A Nigerian government official confirmed the escape, stating that efforts are underway to bring him back with the assistance of Interpol. The Information Minister remarked that Anjarwalla’s actions were in violation of Nigerian laws.
While Anjarwalla managed to leave the country, Gambaryan faced a prolonged period in detention. He remained incarcerated for eight months until a court ultimately dismissed the charges against him, citing humanitarian reasons. Reports indicated that during his detention, Gambaryan experienced severe health complications, including malaria and pneumonia, which rendered him in need of medical care outside Nigeria.
In response to claims made by the exchange’s CEO, who criticized the legal actions as unwarranted, Nigerian officials defended their position. The CEO contended that the exchange had sought cooperation but met resistance, a claim that was met with skepticism by the Information Minister. He pointed out that other cryptocurrency firms operating in Nigeria have not faced similar legal challenges, suggesting that the government’s intent is to safeguard investors rather than hinder business operations.
The continuing legal challenges highlight the tensions between the regulatory framework in Nigeria and the operations of international cryptocurrency exchanges. The government’s pursuit of Anjarwalla signifies a commitment to enforcing its laws and addressing alleged financial crimes, especially in an industry that has been under intense scrutiny due to its potential risks to investors and the economy.
As the situation develops, it remains essential for all parties involved to navigate the intricate landscape of international law, regulatory compliance, and the evolving cryptocurrency market. The outcome of these proceedings could set significant precedents for how cryptocurrency exchanges are treated by regulatory bodies in Nigeria and potentially influence similar cases across the continent.