In a surprising turn of events, Nigeria has decided to drop the tax evasion charges against Binance executives Tigran Gambaryan and Nadeem Anjarwalla, as reported by Nairametrics. Despite the accusations being dismissed, Gambaryan remains in custody facing money laundering charges brought by the Economic and Financial Crimes Commission (EFCC). His health has raised concerns after being diagnosed with malaria and pneumonia.
The initial tax evasion charges were brought against Gambaryan and Anjarwalla by the Federal Inland Revenue Service (FIRS) in March 2024, alleging failure to pay taxes on cryptocurrency transactions worth billions of naira. Binance was accused of not paying value-added tax, company tax, and failing to file tax returns.
Gambaryan’s legal troubles began when he was detained by the EFCC on money laundering charges, but was later released on bail. The Nigerian government’s crackdown on cryptocurrency trading platforms intensified, with the EFCC prosecuting Binance and its executives for alleged money laundering and foreign exchange contravention.
The detention of the Binance executives followed the ban on cryptocurrency channels by the Nigerian government as part of efforts against currency speculation. The devaluation of the Naira and shortage of dollars locally have further complicated the situation.
Binance CEO Richard Teng recently accused a Nigerian government official of pressuring crypto representatives for a secret agreement involving a $150 million bribe. Nigeria denied the bribe accusation, labeling it as a distraction from Binance’s actions. Regulatory scrutiny forced Binance to discontinue services involving the Nigerian naira and resulted in a hefty fine of $10 billion imposed by the Nigerian government.
Binance has faced regulatory challenges globally, with charges from the Commodity Futures Trading Commission (CFTC) for operating an illegal digital asset derivatives exchange and evasion of federal laws. The US Securities and Exchange Commission also charged Binance Holdings LTD and CZ for operating unregistered exchanges and the unregistered offer and sale of securities.
