Nigerian Court Postpones Binance Tax Evasion Trial

After a trial stalled on Wednesday, a Nigerian judge adjourned Binance’s tax evasion case to next month for probable arraignment of the cryptocurrency exchange and two executives

Because authorities neglected to bring Tigran Gambaryan, a U.S. citizen and Binance’s head of financial crime compliance, to court, the investigation stalled. The reason for Gambaryan’s absence from court was not specified.

A court in Abuja determined on Friday that Gambaryan, acting on behalf of Binance, could stand trial in the tax evasion case. 

Richard Teng, the chief executive officer of Binance, accused Nigeria in May of establishing a dangerous precedent when its executives were invited to the country and subsequently detained as a component of a cryptocurrency investigation. The organization is contesting legal proceedings regarding allegations of illicit financial transactions and counterfeit currency. 

Four tax evasion charges have been levied against Binance, its executives Nadeem Anjarwalla, a British-Kenyan and regional manager for Africa, and Gambaryan. Among the charges is non-compliance with the tax registration requirements of Nigeria’s Federal Inland Revenue Service.

Anjarwalla, who escaped detention in March, remains on the case file without specifying that he was “at large.” This could delay the trial, as Nigerian law mandates that all parties be served before the proceedings commence, as stated by Chukwuka Ikwuazom, the attorney for Gambaryan. 

Moses Ideho, an attorney for the revenue service, stated that Gambaryan was expected to have been brought before the court by the prison service of Nigeria, and he was still determining why he was absent.

On June 14, Judge Emeka Nwite postponed the potential arraignment of Binance and Gambaryan. 

Nigeria’s Economic and Financial Crimes Commission (EFCC), an anti-corruption agency, has levied charges against Binance and its executives for laundering over $35 million, in addition to the tax evasion prosecution. On Thursday, a money laundering trial is scheduled to begin. 

Binance has stated that it collaborates closely with Nigerian authorities in the wake of Gambaryan’s detention.