Recent events in the ongoing saga between the Nigerian government and Binance have taken a new turn as tax evasion charges against the exchange’s executives have been dropped. The Federal Inland Revenue Service (FIRS) of Nigeria withdrew the charges against Tigran Gambaryan, Binance’s head of financial crime compliance, and Nadeem Anjarwalla, the exchange’s director for Africa operations. This comes after the FIRS initially charged Binance with four counts of tax evasion, naming Gambaryan and Anjarwalla as defendants.
The charges were filed on the same day that Anjarwalla managed to escape from the custody of the Economic and Financial Crimes Commission (EFCC), adding another layer of complexity to the situation. Both executives had been detained in Nigeria for weeks, with Anjarwalla successfully fleeing during the Ramadan fast. Gambaryan, on the other hand, was moved to the Kuje prison in Abuja and has been held there since.
The tax evasion charges against Binance and its executives were serious, including allegations of failure to register with the FIRS, failure to deduct value-added taxes (VATs) from crypto trades on the platform, and aiding users in avoiding tax payments. Despite the withdrawal of these charges, the executives are still facing legal challenges in a money laundering case brought by the EFCC.
The conflict between Binance and Nigeria began when the country’s currency, the Naira, experienced a significant devaluation against the Dollar. Nigerian officials blamed Binance for contributing to the forex crisis by allowing traders to manipulate the market and speculate on currencies. Binance CEO Richard Teng even went as far as to claim that the government had demanded a hefty bribe to settle the criminal charges. However, the Nigerian government dismissed these allegations as a diversionary tactic and an attempt at blackmail.
The situation has garnered international attention, with U.S. lawmakers urging the President to secure the release of the detained Binance executive due to his deteriorating health. The escalating legal battles and accusations of corruption have put a spotlight on the challenges faced by the cryptocurrency exchange in Nigeria. The outcome of these legal proceedings will have far-reaching implications for both Binance and the cryptocurrency industry as a whole.
