Nigeria Files Tax Evasion Charges Against Binance Crypto Exchange
Nigeria’s federal government has taken legal action against the cryptocurrency exchange Binance for alleged tax evasion. The country’s tax agency, the Federal Inland Revenue Service (FIRS), has filed charges against Binance at the High Court. The lawsuit accuses Binance of four counts of tax evasion, including non-payment of value-added tax and company income tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform. The filing also alleges that Binance failed to register with FIRS for tax purposes and violated existing tax regulations in Nigeria.
Binance Executives Detained in Nigeria
Two senior executives from Binance, Tigran Gambaryan and Nadeem Anjarwalla, were recently detained in Nigeria. Gambaryan, a U.S. citizen overseeing financial crime compliance at the exchange, and Anjarwalla, Binance’s Africa regional manager, were arrested upon their arrival in Abuja on February 26. They were accused of profiting from illegal transactions conducted by Binance locally. Criminal charges were subsequently filed against them on February 28.
However, Anjarwalla managed to escape from custody on Friday. He was being held at a guest house along with his colleague Gambaryan but reportedly fled after guards escorted him to a nearby mosque for Friday prayers. Anjarwalla holds both British and Kenyan passports and is believed to have left the country on a Middle Eastern airline using his Kenyan passport after Nigerian authorities confiscated his British passport.
Investigation and Response
Nigerian authorities are currently investigating how Anjarwalla obtained his passport and are trying to determine his intended destination in order to bring him back into custody. Meanwhile, Binance has stated that its primary focus is on the safety of its employees and that it is working closely with Nigerian authorities to resolve the issue.
Earlier this month, Binance stopped supporting the Nigerian naira on its platform amid ongoing conflicts with Nigerian regulators. The exchange has also faced requests for information regarding its top 100 users in Nigeria.
Hot Take: Binance Faces Tax Evasion Charges in Nigeria
Nigeria’s federal government has filed charges against Binance, accusing the cryptocurrency exchange of tax evasion. The lawsuit alleges that Binance failed to pay value-added tax and company income tax, did not file tax returns, and facilitated tax evasion by its customers. Two senior Binance executives who were detained in Nigeria have also been named as defendants in the suit.
This legal action comes after Binance recently cut support for the Nigerian naira on its platform and faced conflicts with Nigerian regulators. The escape of one of the detained executives adds further complexity to the situation.
The outcome of this case will have significant implications for Binance and the broader cryptocurrency industry in Nigeria. It remains to be seen how the exchange will respond to these charges and whether it will cooperate with Nigerian authorities to resolve the issue.
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