A Nigerian court has ruled that Tigran Gambaryan, an executive at cryptocurrency giant Binance, can be tried on behalf of the company in an ongoing tax evasion case. This decision adds another layer of complexity to the legal battle brewing between Binance and Nigerian authorities.
Facing Multiple Charges
Binance, along with Gambaryan and another executive, Nadeem Anjarwalla, are accused of failing to pay taxes on their operations in Nigeria. The charges specifically allege four counts of tax evasion. Gambaryan, a U.S. citizen who heads financial crimes compliance for Binance, and Anjarwalla, a British-Kenyan regional manager for Africa, have pleaded not guilty to separate money laundering charges exceeding $35 million. Anjarwalla fled Nigeria in March and is currently being sought by Interpol.
Binance maintains its innocence in both cases. The company has called the charges against Gambaryan “completely without merit” and argues that he lacks the authority to make financial decisions for the company. Binance also believes Gambaryan should be released from custody. Gambaryan’s request for bail related to the money laundering charges was denied on Friday.
Nigeria’s Stance on Cryptocurrencies
The Nigerian government has adopted a strict approach towards cryptocurrencies in recent months. Officials blame cryptocurrency platforms for facilitating the trading of the Nigerian naira amidst chronic dollar shortages within the country. This crackdown included inviting Binance executives to Nigeria for talks in February before detaining them. Binance’s CEO has condemned this move, calling it a “dangerous precedent” that discourages foreign investment.
While Binance itself has not been directly charged with tax evasion, Nigerian authorities argue that Gambaryan’s position as chief financial compliance officer allows him to represent the company in court. Gambaryan’s lawyer previously contested this notion, stating that his client lacked the necessary authorization to accept the charges on behalf of Binance.
The judge’s decision on Friday paves the way for Gambaryan to be arraigned in court on Wednesday. During this arraignment, he will enter a plea for Binance on the tax evasion charges. This represents a significant development in the ongoing legal battle, and it remains to be seen how Gambaryan’s trial will impact the broader case against Binance.
Looking Ahead
The future of cryptocurrency regulation in Nigeria remains uncertain. This legal battle between Binance and Nigerian authorities is a high-profile case that could set a precedent for how the country approaches cryptocurrency businesses in the future. The outcome of the tax evasion case and the money laundering charges against Gambaryan and Anjarwalla will be closely watched by the cryptocurrency industry and international observers.
Nigeria’s chronic dollar shortage and its desire to regulate the flow of its currency are likely to continue driving its strict stance on cryptocurrencies. However, Binance’s defense and its portrayal of the situation as an unfair crackdown could also influence public opinion and potentially lead to a shift in policy.
Source: Reuters
