In a recent decision, the Federal High Court in Abuja cleared Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, of tax evasion charges initially filed by the Federal Inland Revenue Service (FIRS). This development brings relief to the crypto exchange platform Binance.
Court Decision and Background
The court’s decision came on Friday after FIRS submitted amended charges, dropping the tax evasion allegations against Gambaryan and Anjarwalla, who had relocated to Kenya. The original charges, filed on March 22, 2024, accused Binance and Gambaryan of tax evasion.
This change followed Binance’s appointment of Ayodele Omotilewa as its Nigerian representative to handle local operations.
Binance's Response
In a statement shared with The PUNCH, Binance expressed relief over the dropped charges. The platform stated, "We are relieved that the Federal Inland Revenue Service (FIRS) has served and filed amended charges today, resulting in tax charges against Tigran Gambaryan being dropped. This further illustrates that Tigran is not a decision-maker at Binance and does not need to be held in order for Binance to resolve issues with the Nigerian government. We await the court’s ruling on this, discharging Tigran from this matter completely."
Call for Further Action
Binance also urged the Economic and Financial Crimes Commission (EFCC) to take similar steps to allow Gambaryan to return home to his family, highlighting his deteriorating health after 110 days of detention, during which he was diagnosed with malaria and pneumonia.
"We commend the FIRS for their diligence and professionalism throughout this process. This situation unequivocally demonstrates Binance’s commitment to resolving this issue with the government transparently and cooperatively. In order for Tigran to be allowed to go home to his family, we are hopeful that the Economic and Financial Crimes Commission (EFCC) will take similar steps. Tigran has been detained for 110 days, and his physical health is deteriorating, including a recent malaria and pneumonia diagnosis. Binance is committed to continuing to work with the Nigerian government to resolve this," Binance added.
Upcoming Hearings and Health Concerns
The next hearing in the case is scheduled for June 19, 2024, where the application for an order for the enforcement of fundamental rights will be heard. On June 20, the EFCC trial is due to continue, with Gambaryan remaining detained at Kuje prison.
Since Gambaryan collapsed in court on May 23 due to malaria, his health conditions have worsened, and he now has pneumonia. Despite a court order by Justice Emeka Nwite to take Gambaryan to the hospital immediately, it took the prison authorities 11 days to provide a brief check-up.
International Attention
Last week, The PUNCH reported that 16 US Members of Congress, including the chair of the Foreign Affairs Committee, Michael McCaul, wrote to President Biden highlighting that Gambaryan is a "U.S. Citizen wrongfully detained by a foreign government," and urging him to do more to secure his release.
Broader Context
The Federal Government had accused Binance of manipulating foreign exchange (FX) rates, leading to increased scrutiny of crypto trading platforms. Separately, the EFCC is prosecuting Binance and its executives on charges of alleged money laundering and foreign exchange violations. On February 28, 2024, Nigerian authorities detained two senior Binance executives when they arrived in Nigeria for a meeting following the Federal Government’s ban on cryptocurrency channels, part of a broader campaign against currency speculation.
The unfolding situation continues to highlight the complex legal landscape for cryptocurrency operations in Nigeria and the efforts of international bodies to address these challenges.
