TheCable

The house of representatives has denied demanding bribe from Binance, a popular cryptocurrency platform.

On Tuesday, the cryptocurrency giant said some unknown persons in Nigeria demanded huge payments in digital currency to make their “problems in the country go away”.

On February 28, the federal government detained two top executives of Binance as part of a probe bordering on illegal operations in the country and foreign exchange rate manipulations.

The detained executives included Nadeem Anjarwalla, a 37-year-old British-Kenyan and Binance’s regional manager for Africa; and Tigran Gambaryan, a 39-year-old US citizen and Binance’s head of financial crime compliance.

Nigeria’s government, on March 25, filed a criminal charge against Binance for “tax evasion” — the same period Anjarwalla fled detention.

THE BLOG POST 

Speaking on the issues, Richard Teng, Binance’s chief executive officer (CEO), in a blog post shared with TheCable, said despite multiple requests, Binance has still not received details of the allegations, “and our employees, therefore, inquired if there was an opportunity to submit our responses in writing and in the absence of a public hearing”.

Teng said Binance held a meeting with the house committee on financial crimes (HCFC).

“There were a number of reasons for that, including the sensitivity of the information and getting the opportunity to see the allegations in full and prepare a thorough substantive response,” he said.

“On January 8, Binance employees had a face-to-face meeting with three members of the HCFC and a clerk in Abuja at the House of Representatives building for a scheduled pre-hearing engagement in private.

“The meeting was chaired by the Honourable Peter Akpanke, the Honourable Philip Agbese, and the Honourable Peter Aniekwe, as well as a clerk.

“During the conversation, the Committee highlighted the important nature of the issues at hand and the lengths to which they were prepared to go to summon Binance, including issuing arrest warrants against our team and CEO and preventing our team from leaving the country.

“While concerning, it was understood that the HCFC does not in fact have the power to issue arrest warrants.

“The meeting ended with the Chair confirming they would consider the matter and revert through Binance’s local counsel.

“However, as our employees were leaving the venue, they were approached by unknown persons who suggested to them to make a payment in settlement of the allegations.

“Later that day, our local counsel — representing us at that time — was summoned by the Committee through someone purporting to be their agent, who relayed the Committee’s terms and instructed our local counsel to advise us.”

‘NOTHING LIKE THAT EVER HAPPENED’

During plenary on Wednesday, Kama Nkemkanma from Ebonyi state, raised a “point of privilege”, saying the house never met with Binance and no bribe has ever been demanded.

“This house can never allow itself to be talked down,” he said.

The lawmaker said the allegation is capable of “bringing the house into disrepute” and should “never be taken lightly”.

Ruling on the point of privilege, Tajudeen Abbas, speaker of the house, said the clerk should “take note”.

“We need to use whatever media available to us to refute this allegation,” Abbas said.

“Nothing like that has ever happened. No committee of the house has ever engaged this man.”

THE INVESTIGATIVE HEARING

The house committee on financial crimes has been investigating Binance for multiple crimes, including alleged money laundering, illegal operations, financial terrorism, and tax evasion.

The committee is chaired by Ginger Onwusibe, lawmaker representing Isiala Ngwa south/Isiala Ngwa north federal constituency.

The committee invited the management of Binance on several occasions but the cryptocurrency firm sent legal representatives instead.

In one of the committee sittings in early March, the lawmakers turned back Senator Ihenyen, the legal representative of Binance.

It is unclear why Nkemkanma and Abbas said Binance never met lawmakers.

REPS TO PROBE ESCAPE OF BINANCE EXECUTIVE FROM CUSTODY

Meanwhile, the house of representatives has resolved to investigate the circumstances surrounding the escape of Anjarwalla, the Binance regional manager for Africa, from custody.

Anjarwalla escaped from custody in March but was reportedly rearrested in Kenya in April.