In a significant legal development, a Nigerian court has decided that Binance executive Tigran Gambaryan can be prosecuted on behalf of the cryptocurrency exchange in an ongoing tax evasion case.
The case involves Binance and its executives, including Gambaryan, a US citizen who serves as Head of Financial Crimes Compliance, and Nadeem Anjarwalla, a British-Kenyan national who holds the position of Regional Manager for Africa. there is. They are charged with a total of four counts of tax evasion, laundering more than $35 million and engaging in professional financial activities without proper licensing. All parties have pleaded not guilty to money laundering charges.
Following the court ruling, Binance’s legal representative declined to comment, as did Gambarian’s lawyer.
A Binance spokesperson expressed disappointment with the court’s decision and emphasized that Gambarian, who lacks decision-making authority within the company, remains detained despite the charges being perceived as unfounded. The spokesperson called for Gambarian’s release pending ongoing discussions between Binance and Nigerian government officials.
While Gambarian was in custody, Anjarwala fled the country in March, prompting Nigeria’s Security Advisory Office to work with Interpol to apprehend him.
Binance’s CEO criticized Nigeria for what he perceives as a troubling precedent, especially after executives were invited to the country for discussions with authorities and then detained as part of a broader crackdown on cryptocurrency-related activity.
Notably, Binance itself has not been directly implicated in the tax evasion case by Nigeria’s Federal Internal Revenue Service (FIRS), indicating that Gambarian could be prosecuted on behalf of the exchange.
The court ruling stipulated that Gambarian, Binance’s chief financial compliance officer, should face charges against the exchange. This decision was based on his role and appointment to represent Binance at a conference held in Nigeria.
Gambarian is scheduled to be arraigned in court on Wednesday to appeal on behalf of Binance. However, his bail application in connection with the money laundering case was rejected by the court.
Nigeria partly pointed to Binance’s currency issues, citing the cryptocurrency platform as the preferred means of trading the Nigerian naira amid ongoing dollar shortages.
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