A Nigerian court has rescheduled the hearing of a tax evasion lawsuit against Binance and some of its executives to May 17. The delay represents the latest development in the ongoing regulatory saga between various agencies of the Nigerian government and the Malta-based cryptocurrency exchange.
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Tax case postponed due to legal stay
On March 22, Nigeria’s Federal Inland Revenue Service (FIRS) arrested Binance and two of its executives, Nadeen Ahjarwalla, Head of Financial Crimes Compliance, and Tigran Gambaryan, Regional Manager for Africa. He was indicted on charges of tax evasion.
These charges included “non-payment of value-added tax, non-payment of company income tax, failure to refund tax returns, and conspiracy to help customers evade taxes through the platform,” which the FIRS believed was caused by Binance’s initial failures. Before providing services to Nigerians, you must go through a registration process.
According to local news outlet BusinessDay, the case was submitted for hearing on April 19 and only Tigran Gimbaryan was present in court as Nadeen Ahjarwhalla had fled the West African country for a long time. Gimbaryan reportedly declined the plea because the FIRS failed to bring tax evasion charges against Binance.
But prosecutors argued that U.S. citizens must defend themselves and the interests of cryptocurrency exchanges against the charges. In response, Gambarian’s lawyer said that since all parties were jointly indicted, Binance, the main defendant, must be served by the IRS before his client can plead his case under the Nigerian Constitution.
Following the legal impasse, Justice Emeka Nwite of the Federal High Court in Abuja ruled that the case be adjourned to May 17 for a definitive ruling. This is the second time the FIRS’s tax evasion case against Binance has been postponed, after it was first postponed on April 4 after Nigeria’s tax regulator failed to serve Gambarian ahead of a stipulated court trial.
Nigeria’s Binance Problems Continue
Binance exchange is currently locked in a hostile regulatory situation with the Nigerian government. In addition to tax evasion charges, Nigeria’s Economic and Financial Crimes Commission (EFCC) has accused a prominent cryptocurrency exchange of laundering over $35 million in funds.
The Nigerian government has stepped up regulatory scrutiny of Binance after accusing the exchange of playing a key role in the massive devaluation of the Nigerian naira through speculation and currency fixing. Following these claims, Kimbarian and Azharwara were arrested on February 26 during a visit to the West African country following reports that the government had banned certain access to Binance and other cryptocurrency exchanges.
Binance has disabled all naira services on its platform and appears to be doing its best to resolve any legal issues related to the detention of its employees after exchange CEO Richard Teng recently confirmed its willingness to cooperate with the Nigerian government. .
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