The tax evasion case involving Binance, a prominent cryptocurrency exchange, and two of its top executives, has been postponed to May 17 by a Nigerian court. This delay came about because Binance had not received the formal charges against them.
BusinessDay, a local news agency, reported that the Federal Inland Revenue Service (FIRS) has yet to serve Binance with the tax evasion allegations. The FIRS’s legal representative contended that Gambaryan, who is supposed to represent Binance as the main defendant, had been properly served, since both the exchange and its executives were charged simultaneously.
However, Chukwuka Ikuazom, Gambaryan’s lawyer, objected to this, invoking Nigerian law which mandates that he cannot enter a plea until Binance, the principal defendant, has been officially served. Judge Emeka Nwite then scheduled the next hearing for May 17, during which he will deliver his decision.
Binance and its executives, Tigran Gambaryan, a 39-year-old American who serves as the head of financial crime compliance, and Nadeem Anjarwalla, a 37-year-old British-Kenyan who is the regional manager for Africa, were arrested on February 28. They were charged with four counts of tax evasion during their visit to Nigeria.
Their arrest followed the government’s prohibition of cryptocurrency transactions as part of its efforts to mitigate currency speculation. The court has ordered Binance to provide the Nigerian government with data and information about Nigerian traders using its platform.
The charges stem from Binance’s alleged failure to register with Nigeria’s Federal Inland Revenue Service (FIRS) for tax payments. Gambaryan appeared in an Abuja court on Friday but did not enter a plea. Anjarwalla, however, was absent, having fled detention and left the country in March 2024.
In addition to the tax evasion case, Binance and its executives are also accused by Nigeria’s anti-corruption agency, the Economic and Financial Crimes Commission (EFCC), of laundering more than $35 million. The trial for this charge is slated to continue on May 2.
Although Binance was not represented in court and did not offer immediate comments, the exchange stated during the Token2049 crypto conference in Dubai on Thursday that it is collaborating closely with Nigerian authorities following Gambaryan’s detention.
Meanwhile, a federal high court in Abuja has further delayed the bail hearing for Binance executive Tigran Gambaryan, who remains incarcerated at the Kuje correctional center. Nonetheless, Gambaryan has filed a lawsuit against the government for infringing upon his fundamental human rights. His legal motion contends that his detention in Nigeria and the seizure of his passport violate the country’s constitution, which safeguards an individual’s right to personal freedom.