Nigeria Probes Binance for Tax Evasion; BlackRock Could Outpace Grayscale in Bitcoin Holdings
Summary:
Binance, a well-known cryptocurrency exchange, is under investigation by the Nigerian government over claims of tax evasion while an executive allegedly escaped the country. Concurrently, BlackRock's spot Bitcoin ETF might overshadow Grayscale's GBTC in less than a month according to recent ETF data. Meanwhile, U.S. officials are requesting court approval to sell two confiscated jets linked to the former CEO of FTX, Sam Bankman-Fried, who awaits sentencing on seven felonies.
Binance, a prominent cryptocurrency exchange, is now under scrutiny by the Nigerian government over assertions of tax evasion. This comes on the heels of a Binance executive making an unanticipated departure from the country. In other developments, comparison of recent ETF movement data hints at BlackRock's potential to surpass Grayscale's GBTC with its spot Bitcoin ETF in less than a month. Concurrently, U.S. officials are pursuing the green light from the court to auction two confiscated private jet assets previously owned by Sam Bankman-Fried, ex-CEO of FTX.
A top-tier executive from Binance, arrested by Nigeria’s law enforcement authorities, is believed to have evaded custody under the guise of a counterfeit passport, as reported by local news outlets citing insiders. The unfolding scenario coincides with other narratives suggesting a tax evasion lawsuit against Binance by the Nigerian government. On Monday, the indictment was reportedly filed in the Federal High Court situated in Abuja.
Reports state that Nadeem Anjarwalla was able to make an international exit from Abuja via a Middle Eastern airliner. However, it remains a mystery how such departure was possible considering his UK-issued passport, which he used to enter Nigeria, is still with the Nigerian authorities.
Upon their arrival in Nigeria, Anjarwalla, Binance’s African region’s manager, and Gambaryan, an U.S. national in charge of Binance’s criminal investigation team, were reportedly taken into police custody on February 26. Measures have been tightened by the Nigerian Government in response to the alleged Binance-linked money laundering and terrorist financing incidents.
BlackRock's ETF, within the next three weeks, may eventually flip Grayscale's GBTC in terms of Bitcoin managed. By March 22, BlackRock’s Bitcoin ETF had amassed 238,500 Bitcoin (BTC) - equivalent to $15.5 billion, given the current market prices. It continues to boast an impressive daily inflow of around $274 million, which translates into 4,120 new Bitcoin entering the fund daily.
Meanwhile, Grayscale’s Bitcoin Trust (GBTC), as per the latest updates, still manages around 350,252 BTC - computed to be worth $23 billion, based on current rates. However, it has been witnessing a daily outflow of approximately $277 million, equating to about 4,140 BTC on a daily basis, over the past two weeks. Provided that both the inflows and outflows stay steady, it’s plausible that BlackRock will surpass Grayscale in terms of total Bitcoin managed by April 11.
Prosecutors in the United States are seeking court authorization to auction off two private aircraft previously owned by Sam Bankman-Fried. The forfeiture proceedings were initiated as part of Bankman-Fried's criminal investigation. To avoid depreciation, prosecutors have urged the court to swiftly sell the Bombardier Global and Embraer Legacy aircraft. The total worth of both aircraft is estimated at $28.4 million.
Following the conviction on seven felonies in November 2023, Bankman-Fried is presently awaiting his sentence, which could potentially result in a 40 to 50 years imprisonment.
Please note that this article does not offer investment advice or support any investment decisions. All investment moves come with their inherent risks, and we recommend readers do their proper research before making any noteworthy financial decisions. Further reporting was provided by Geraint Price, Sam Bourgi, and Felix Ng.
Published At
3/25/2024 4:00:32 PM
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