Update on Binance Tax Evasion Lawsuit in Nigeria: New Hearing Scheduled
A Nigerian court has rescheduled the hearing of a tax evasion lawsuit against Binance and some of its executives to May 17. This adjournment represents the latest development in the ongoing regulatory saga between various agencies of the Nigerian government and the Malta-based cryptocurrency exchange.
Legal Standstill Leads to Adjournment
On March 22, the Nigerian Federal Inland Revenue Service (FIRS) charged Binance and two of its executives, Nadeen Ahjarwalla and Tigran Gambaryan, with four counts of tax evasion. These charges stemmed from allegations of non-payment of Value-Added Tax, Company Income Tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform.
- The FIRS believed these actions occurred because Binance did not initially undergo a registration process before offering services to Nigerians.
Court Proceedings and Legal Impasse
According to local news media BusinessDay, the case was presented for a hearing on April 19, with only Tigran Gimbaryan appearing in court as Nadeen Ahjarwhalla had left the West African nation. Gimbaryan declined to enter a plea, asserting that the FIRS had not served the tax evasion charges to Binance.
- The prosecution argued that Gimbaryan should defend himself and the exchange against the charges.
- Gambaryan’s lawyer insisted that Binance, as the primary defendant, must be served before his client could plead.
Second Adjournment and Future Developments
After the legal standoff, Justice Emeka Nwite of the Federal High Court Abuja adjourned the case to May 17 to provide a definitive judgment. This marks the second time the trial has been postponed, following an initial delay on April 4 due to the failure of the tax regulator to serve Gambaryan before the court trial.
Continued Challenges for Binance in Nigeria
Binance faces a challenging regulatory environment in Nigeria. Apart from tax evasion charges, the Nigerian Economic and Financial Crimes Commission (EFCC) has accused the exchange of laundering over $35 million. This heightened scrutiny comes after allegations that Binance played a key role in the devaluation of the Nigerian naira through speculation and rate fixing.
- The arrest of Gimbaryan and Ahjarwhalla followed reports of the government restricting access to Binance and other crypto exchanges.
- Binance has suspended all naira services on its platform and expressed a willingness to cooperate with Nigerian authorities.
Key Takeaways:
- The hearing of the tax evasion lawsuit against Binance and its executives has been rescheduled to May 17, following a legal impasse in court.
- Binance is facing regulatory challenges in Nigeria, including accusations of tax evasion and money laundering.
- The exchange has suspended naira services and is working to address legal issues with Nigerian authorities.
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