Binance Nigeria's fugitive executives found in Kenya, local blockchain advocacy group: Escape may be difficult.

As the regulatory storm continues to rage in Binance Nigeria, top executive Nadeem Arjarwalla, who is on the run, has been found in Kenya. Authorities have stated that they will cooperate with Interpol in an attempt to extradite him back to the country. On the other hand, various local blockchain advocacy groups have pointed out that Web3 investors are flowing out.

Senior Binance Executive Found in Kenya While on the Run

According to local media outlet Punch, a source within the Nigerian presidency revealed that Nadeem Arjarwalla, a senior executive at Binance, who fled Nigeria, has been identified and located in Kenya.

The Economic and Financial Crimes Commission (EFCC) and the police force in Nigeria are currently in negotiations with the Kenyan authorities and Interpol to extradite Arjarwalla back to Nigeria for trial:

We have found him in Kenya, and we are working with the authorities to bring him back to Nigeria.

Previously, the EFCC took enforcement action against Binance and two of its senior executives on five charges related to money laundering and tax evasion, with the two individuals being in custody for nearly two months.

Local Crypto Organizations Concerned about Investor Withdrawals

However, the crackdown on Binance by the Nigerian government has impacted the local Web3 industry, leading to significant withdrawals by institutional and retail investors.

The Nigerian blockchain user groups BNUG, the Cryptography Development Advocacy Organization CDIN, the Blockchain Industry Coordinating Council of Nigeria SiBAN, and the Blockchain Industry Coordinating Committee BICCoN recently disclosed to Cointelegraph that investors are concerned about the regulatory uncertainties affecting the Web3 business environment.

BICCoN Chairman Uwakwe noted that both institutional and retail investors are gradually withdrawing their investments:

Investors are worried that investing in local Web3 companies may lead to a situation similar to the current challenges faced by Binance.

Uwakwe believes that the government's handling of the Binance issue has had a negative impact on the entire country, sacrificing potential long-term growth for short-term solutions.

Despite the relatively small size of the market in Central and South Africa, cryptocurrency has permeated the daily lives of many people; Nigeria ranks second globally in cryptocurrency adoption, highlighting the enthusiasm for cryptocurrencies in the country.

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Uwakwe Expresses Concern: Binance Executives May Struggle to Clear Their Names

Furthermore, when asked about the possibility of the Binance executives clearing their names, Uwakwe expressed concerns, admitting that unless certain conditions within the company are met to the satisfaction of the government, the chances of these executives being acquitted are slim:

The possibility might be only 10%, with the government having a 90% chance of winning.

He added, "Even if acquitted, the Nigerian government may disregard the court's ruling and impose sanctions."