Binance Remains Sole Defendant in Nigeria Tax Case

Nigeria’s Federal Inland Revenue Service (FIRS) has amended the charges originally filed against Binance, a major global cryptocurrency exchange, by dropping the accusations against its executives Tigran Gambaryan and Nadeem Anjarwalla. Initially, both were implicated in a tax evasion case alongside Binance. However, they still face charges related to money laundering by the Economic Financial Crimes Commission (EFCC).

This legal revision comes in the aftermath of several tumultuous months. Back in mid-March, the FIRS and the EFCC targeted both the individuals and the company. Subsequently, Gambaryan was detained upon his arrival in Nigeria, which Binance argued was setting a “dangerous precedent” for international business operations.

Presently, with the FIRS’s new filing, Binance stands as the sole defendant, represented locally. Despite being removed from the tax evasion case, Gambaryan, an American national and Binance’s head of financial crime compliance since 2021, and Anjarwalla, the regional manager for Binance Africa, continue to be embroiled in serious allegations by the EFCC.

The situation has garnered attention, particularly due to the severe conditions mentioned by Binance. Gambaryan remains in custody, facing health challenges including malaria and pneumonia, with his next court appearance scheduled for June 19. Binance’s CEO, Richard Teng, has also highlighted undue pressures on their operations, including alleged extortion attempts by Nigerian authorities involving a $150 million bribe.

Moreover, the broader implications for Binance’s global operations are significant. The company recently made headlines when Changpeng Zhao, its founder, faced a U.S. court sentence related to money laundering, resulting in an agreement to withdraw Binance’s business from the U.S. market and a hefty fine.

As this legal drama unfolds, the global crypto community watches closely, aware that the outcomes could have far-reaching effects on international regulatory practices and the operation of cryptocurrency exchanges worldwide.