Federal Inland Revenue Service (FIRS) Drops Charges Against Binance Executives in Nigeria

The Federal Inland Revenue Service (FIRS) in Nigeria has dropped tax evasion charges against two executives from the popular cryptocurrency exchange platform, Binance. The charges were withdrawn against Tigran Gambaryan and Nadeem Anjarwalla after authorities decided to serve their employer with the tax evasion charges instead of them as individuals.

Gambaryan, a U.S. citizen, was facing trial for tax evasion, with his colleague Anjarwalla and Binance platform as defendants in the case. Despite Gambaryan not appearing in court to face the tax charges, the trial for the money laundering case against him, his colleague, and the company will continue on Thursday, June 20, 2024.

The Economic and Financial Crimes Commission (EFCC) in Nigeria had filed a money laundering case against the defendants amounting to $35.4 million. However, they have denied any wrongdoing in Nigeria.

Gambaryan, who is 40 years old, is still in prison custody in Abuja, the capital of Nigeria, while his colleague Anjarwalla is wanted by Nigerian authorities after escaping custody in March under unclear circumstances.

In response to the latest developments, Binance issued a statement expressing relief that the FIRS had dropped the charges against Gambaryan. They emphasized that Gambaryan is not a decision-maker for Binance and that Nigerian authorities do not need to hold him for Binance to settle issues with the government. Binance is hopeful for a court ruling to completely discharge Gambaryan from the matter.

The amended charges filed by FIRS against Binance include failure to register with the Federal Inland Revenue Service, failure to issue invoices for taxable services, failure to deduct necessary value-added taxes, and unlawful refusal to pay taxes.

The case against the Binance executives began in March 2024 when FIRS filed legal proceedings alleging tax evasion. The charges were amended in May to include failure to collect and remit various categories of taxes to the federation. The Nigerian government has accused Binance of influencing foreign exchange rates and tightening regulations on crypto trading platforms.

The EFCC is separately prosecuting Binance and its executives for alleged money laundering and foreign exchange contravention. Two senior Binance executives, including Nadeem Anjarwalla and Tigran Gambaryan, were detained in February 2024, with Nadeem escaping from custody later on.

The Binance executives had visited Nigeria for a meeting before the government intensified scrutiny on cryptocurrency platforms as part of efforts to stabilize the forex market and the falling value of the naira.