In a significant turn of events, Nigeria has withdrawn tax evasion charges against two executives from Binance, the world’s largest cryptocurrency exchange.
According to Reuters, the decision came after Binance appointed a local representative to handle all legal proceedings related to the allegations. However, the exchange and the two executives still face separate charges of money laundering.
Money Laundering Allegations Persist
Tigran Gambaryan, a US citizen and head of financial crimes compliance at Binance, and Nadeem Anjarwalla, a British-Kenyan national serving as a regional manager for Africa, had vehemently denied the tax evasion accusations. Nigerian authorities detained Gambaryan on February 26, while Anjarwalla escaped in March.
Gambaryan has been held in custody since then, with restricted access to his passport and supervised communication with his legal team and family.
Binance responded to the court’s decision, asserting that Gambaryan was not a decision-maker within the company and that his detention was unnecessary for resolving issues with the Nigerian government.
A spokesperson for Binance expressed optimism for a complete discharge of Gambaryan from the matter pending the court’s ruling.
Although the tax evasion charges have been dropped, the exchange and the two executives still face allegations of money laundering. The Nigerian Federal Inland Revenue Service removed Gambaryan and Anjarwalla as defendants in the tax evasion case.
Nigeria Holds Binance Responsible For Naira Woes
The Nigerian authorities have accused the exchange of facilitating illicit funds transfers amounting to over $26 billion without adequate oversight. The Central Bank of Nigeria (CBN) has also alleged that Binance engaged in money laundering totaling $35.4 million.
Nigeria has attributed its currency challenges to Binance, as cryptocurrency platforms became popular for trading the Nigerian Naira amidst persistent dollar shortages and a record depreciation of the country’s currency.
Binance has strongly refuted the charges and called for their dismissal. Both Gambaryan and Anjarwalla have consistently denied these allegations as well.
While the tax evasion charges have been dropped, the money laundering case against Binance and the two executives remains unresolved, with further legal proceedings expected.
Overall, the developments surrounding Binance and its executives in Nigeria highlight the growing scrutiny and regulatory challenges cryptocurrency exchanges worldwide face. As the case unfolds, industry observers await the court’s decision on the money laundering charges while the involved parties continue to navigate the complex legal landscape.
When writing, the exchange’s native token, Binance Coin (BNB), was trading at $610. Despite virtually no change in the 24-hour time frame, BNB has been down more than 13% over the past seven days as the token faces a price correction after hitting a new all-time high of $725.
Featured image from DALL-E, chart from TradingView.com