Following the expiration of the initial detention warrant, the Economic and Financial Crimes Commission (EFCC) has asked an Abuja federal high court to extend the custody of two executives from Binance that were arrested during the nationwide cryptocurrency crackdown, according to sources familiar with the case.
Following Nigeria’s ban on some cryptocurrency trading sites, Binance executives Tigran Gambaryan, an American who is the head of financial crime compliance, and Nadeem Anjarwalla, a British Kenyan who is the regional manager for Africa, visited the country.
They were arrested upon arrival on February 26. They have not been charged with a crime.
Court records indicated that the EFCC in Nigeria obtained an order allowing the couple to be detained for two weeks to assist with their investigations.
Although the detention order expired on Tuesday, the individuals are still in custody since the EFCC has asked a chief magistrate’s court in Abuja for an extension to continue their investigation.
According to the individual, the lawyers representing the two executives argue that there are no grounds for holding them in detention. Another person close to the men’s families stated that a hearing has been scheduled on March 20, during which the court would either dismiss or grant the extension request on the same day or later.
On February 28, the federal government reportedly detained two top executives of the popular cryptocurrency trading platform, Binance, over alleged manipulations in foreign exchange trading and speculative activities.
The executives visited Nigeria in response to the country’s recent crackdown on various cryptocurrency trading platforms.
During their stay, they were apprehended by the Office of the National Security Adviser, and their passports were confiscated.
Following the detention of the executives, the crypto trading platform advised Nigerians trading on its exchange to withdraw all their NGN assets as it discontinues services in the country.
The company said it would no longer accept Naira deposits from today, March 5, adding that Nigerians now have until March 8 to withdraw their assets.
Binance said any asset not withdrawn by that date would be converted to USDT.
Meanwhile, Nigeria is pushing the cryptocurrency exchange platform for information on its top 100 users in the country, as well as all transaction history for the past six months, according to Financial Times.
The office of Nigeria’s national security adviser is also asking the exchange to resolve any outstanding tax liabilities.
Nigeria has focused its attention on Binance and other cryptocurrency websites as it seeks to head off its worst economic crisis in three decades and restore its citizens’ faith in its battered currency.
President Bola Tinubu’s government has introduced sweeping market-friendly reforms to attract overseas investment.
It also devalued its currency, which has driven inflation to an almost three-decade high of 29.9%.
Cryptocurrency sites have emerged as an alternative to establish an unofficial price for the Nigerian currency and Binance is the biggest marketplace.
However, Olayemi Cardoso, Nigeria’s central bank governor, said last month that $26 billion had passed through Binance within the past year through sources we “cannot adequately identify.”
He, however, did not name the two executives.