In Nigeria, the cryptocurrency exchange Binance and two of its executives face a tax evasion lawsuit, which has been postponed to May 17 due to the charges not yet being formally communicated. According to BusinessDay, the Federal Inland Revenue Service (FIRS) has not yet delivered the tax evasion charges to Binance. FIRS’s lawyer argued that given both Binance and the executives are jointly accused, Binance should be represented as the primary defendant.
Reason for Delay: Notification Not Served
However, Chukwuka Ikuazom, the lawyer for Gambaryan, objected citing Nigerian laws and stated that the primary defendant Binance could not defend itself without being served. Judge Emeka Nwite decided to postpone the case until May 17, when he will announce his decision.
Binance and its executives, including Tigran Gambaryan, a 39-year-old U.S. citizen who serves as the compliance head for financial crimes, and Nadeem Anjarwalla, a 37-year-old British citizen of Kenyan origin and also the exchange’s Africa regional manager, were accused of evading taxes four times during a visit to Nigeria. The arrest followed the federal government’s campaign to curb foreign exchange speculation by banning cryptocurrency channels.
Focus of the Case
The case involves Binance not registering with the Nigeria Federal Inland Revenue Service (FIRS) for tax operations. Gambaryan was present in court in Abuja on Friday but did not defend himself. However, Anjarwalla was not present in court as he escaped detention and left the country in March 2024.
In addition to the tax evasion case, Binance and its executives also face charges of laundering over $35 million by Nigeria’s anti-corruption agency, the Economic and Financial Crimes Commission (EFCC). The case will resume on May 2.
Binance Works Closely with Nigerian Authorities
Binance, unrepresented in court and yet to comment, stated at the Token2049 crypto conference in Dubai on Thursday that it is working closely with Nigerian authorities following Gambaryan’s arrest.
Meanwhile, a federal high court in Abuja, Nigeria, has once again postponed the bail hearing for Binance executive Tigran Gambaryan, who is detained at the Kuje correctional center.
Additionally, Gambaryan is suing the government for violating basic human rights. His petition claims that his detention in Nigeria and the confiscation of his passport violate the country’s constitution, which guarantees an individual’s right to personal liberty.
