Events in the ongoing conflict between Nigeria and Binance are developing rapidly. The latest update reveals that the country has decided to drop tax evasion charges against top executives of the cryptocurrency exchange.
Nigerian journalist Alexander Onukwue shared on Twitter that the Federal Inland Revenue Service (FIRS) of Nigeria has withdrawn the tax evasion charges against Tigran Gambaryan, who serves as Binance’s head of financial crime compliance, and Nadeem Anjarwalla, the exchange’s director for Africa operations.
Previously, in late March, FIRS had accused Binance of four counts of tax evasion, with Gambaryan and Anjarwalla named as the second and third defendants. The charges were filed on the same day that Anjarwalla managed to escape from the custody of the Economic and Financial Crimes Commission (EFCC).
Anjarwalla and Gambaryan had been detained in Nigeria since February, with their passports and travel documents confiscated. Anjarwalla’s escape led to Gambaryan being transferred to the Kuje prison in Abuja, where he remains detained.
The tax evasion charges included allegations of failure to register with FIRS to pay the necessary taxes, neglecting to deduct value-added taxes (VATs) from crypto trades on the platform, not using VAT invoices to ensure users pay their taxes, and allegedly aiding users in tax evasion.
With the charges dropped against the executives, Gambaryan will no longer need to appear in court for the tax evasion case, as Binance is now the sole defendant. However, the executives are still facing money laundering charges from the EFCC.
The conflict between Nigeria and Binance began when the naira underwent significant devaluation against the dollar, with Nigeria accusing Binance of contributing to the forex crisis by allowing market manipulation and currency speculation on its platform.
Binance CEO Richard Teng claimed that Nigerian officials had demanded a $150 million bribe to settle the charges, which the country denied, calling it a diversionary tactic and blackmail attempt.
In the midst of this turmoil, U.S. lawmakers have urged the Nigerian government to release the detained Binance executive due to concerns about his deteriorating health.
As the situation continues to evolve, it highlights the complexities of the relationship between cryptocurrency exchanges and governments, as well as the challenges faced by the crypto industry in navigating regulatory environments across different countries. The outcome of this conflict will undoubtedly have implications for the future of crypto regulation and enforcement in Nigeria and beyond.