On Friday, the Federal High Court in Abuja discharged Tigran Gambaryan, a 39-year-old American, and Nadeem Anjarwalla, a 37-year-old British-Kenyan, from a tax evasion case initiated by the Federal Inland Revenue Service (FIRS) on March 22. Both individuals are executives at the cryptocurrency exchange platform Binance.
The court dismissed the charges after Binance appointed Ayodele Omotilewa as its Nigerian representative. Subsequently, the FIRS filed new charges naming Binance as the sole defendant.
Previously, US lawmakers sought the release of Gambaryan, who was detained in Nigeria. In a letter dated June 4, addressed to US President Joe Biden, they urged the US government to secure his release.
Binance faced accusations of providing services to Nigerians without deducting the required Value Added Taxes (VAT). Both executives were detained in February, and Nadeem Anjarwalla reportedly fled custody.
On May 17, the case was amended to include allegations of failing to collect and remit taxes, including VAT and Corporate Income Tax (CIT), as mandated by Section 40 of the FIRS Establishment Act of 2007, as amended. The Minister of Information, Idris Mohammed, disclosed that Binance had a turnover of over $20 billion in Nigeria in 2023.
During Friday’s proceedings, Binance’s counsel, Tonye Krukrubo SAN, informed Justice Emeka Nwite that Binance had submitted its representative’s details to the FIRS and the court. FIRS counsel, Moses Idehu, confirmed this and requested permission to substitute previous charges with the amended charge dated June 13, 2024.
The amended charges allege that Binance Holdings Ltd, on February 1, 2024, in Abuja, aided and abetted subscribers on its platform to evade taxes, violating Section 94 of the Companies Income Tax Act (as amended).
This case is part of a larger crackdown on cryptocurrency trading platforms in Nigeria, with the government accusing Binance of influencing foreign exchange rates and destabilizing the country’s economy. Additionally, the EFCC is prosecuting Binance and its executives for alleged money laundering and foreign exchange violations.
Justice Nwite ruled that the charges filed on March 22, 2024, and May 17, 2024, were struck out. Further proceedings are scheduled for July 12, where discussions will determine if the Nigerian representative will need to stand trial.
