Nigeria’s Federal Government has taken a significant legal step against Binance, a prominent cryptocurrency exchange platform, by filing charges for tax evasion at the Federal High Court in Abuja.
The move comes as part of the government’s aim to uphold fiscal responsibility and protect the economic integrity of the country.
Allegations Against Binance
The Federal Inland Revenue Service (FIRS) has accused Binance of four counts of tax evasion, including the failure to pay value-added tax (VAT), company income tax, and failure to file tax returns. Additionally, Binance is accused of complicity in aiding customers to evade taxes through its platform.
The lawsuit further claims that Binance failed to register with FIRS for tax purposes and violated existing tax regulations within Nigeria.
Just In: FG files tax evasion charges against Binance.
The F.G has filed a criminal charge against Binance, a popular cryptocurrency platform, for “tax evasion”, CableNG is reporting.
The charge was filed before the federal high court in Abuja on March 25 by the Federal Inland…
— Instablog9ja (@instablog9ja) March 25, 2024
Tigran Gambaryan and Nadeem Anjarwalla, both senior executives of Binance, have been named as defendants in the suit. Gambaryan, responsible for overseeing financial crime compliance, and Anjarwalla, the Africa regional manager, were detained upon their arrival in Nigeria’s capital, Abuja, on February 26.
Escape from Custody
Nadeem Anjarwalla, one of the detained executives, reportedly escaped from custody on Friday in an unexpected turn of events. Anjarwalla, a British national, managed to flee from the Economic and Financial Crimes Commission (EFCC) guest house where he was being held alongside his colleague.
Preliminary findings indicate that Anjarwalla utilized a smuggled passport to flee the country, adding a layer of complexity to the ongoing investigation. Authorities have also taken into custody the personnel responsible for overseeing Anjarwalla’s detention, signaling a thorough probe into the circumstances surrounding his escape.
Kenyan crypto boss, Nadeem Anjarwalla, escapes from custody in Nigeria pic.twitter.com/LJ0zCSlkSK
— Kenyans.co.ke (@Kenyans) March 25, 2024
The escape occurred while Anjarwalla was under a 14-day remand order by a Nigerian court, with his next court appearance scheduled for April 4, 2024. Nigerian law enforcement agencies are urging the public and the international community to provide any relevant information that could aid in the apprehension of the fugitive.
Nigerian authorities are currently investigating the circumstances surrounding Anjarwalla’s escape, including how he obtained the passport and his intended destination. Efforts are underway to bring him back into custody to face the charges against him.
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Impact on Binance
The legal proceedings against Binance mark a significant development in the ongoing regulatory challenges faced by the cryptocurrency exchange. Earlier this month, Binance suspended support for the Nigerian naira on its platform amidst escalating tensions with Nigerian regulators and requests for information on its top users in the country.
The filing of tax evasion charges against Binance and the escape of one of its executives underscores the complex regulatory landscape surrounding cryptocurrency operations in Nigeria. As the legal proceedings unfold, the implications for Binance and its operations in the country remain uncertain.
