Nigeria Drops Tax Evasion Charges Against Binance Executives but Money Laundering Charges Still Active

Nigeria has dropped tax evasion charges against two Binance executives on Friday after the world’s largest crypto exchange appointed a local representative to handle all court processes relating to the allegations on its behalf. The executives, Tigran Gambaryan, a U.S. citizen and head of financial crimes compliance for Binance, and Nadeem Anjarwalla, a British-Kenyan national and regional manager for Africa, denied the tax evasion charges.

Binance stated that the court’s decision indicated that Gambaryan was “not a decision-maker at Binance and does not need to be held in order for Binance to resolve issues with the Nigerian government.” A spokesperson for Binance added, “We await the court’s ruling on this, discharging Tigran from this matter completely.” Gambaryan has been in custody since February, while Anjarwalla left Nigeria in March.

The Federal Inland Revenue Service of Nigeria removed the two executives as defendants in the tax evasion case. However, both executives, along with Binance, still face separate money laundering charges, which Binance insists should also be dropped. Gambaryan and Anjarwalla both deny these allegations as well.

Nigeria has attributed some of its currency challenges to Binance, as cryptocurrency platforms have become popular for trading the Nigerian naira amidst the country’s chronic dollar shortages and a record low in its currency value.

Ongoing Legal Battles

While the tax evasion charges have been dropped, the legal battles for Binance and its executives are far from over. The money laundering charges remain a significant issue that could impact the company’s operations and reputation in the region. Binance continues to maintain that these charges are unfounded and is advocating for their dismissal.

Impact on Cryptocurrency Trading in Nigeria

Nigeria’s scrutiny of Binance is part of a broader effort to regulate cryptocurrency trading within its borders. The country has faced severe currency devaluation and dollar shortages, leading many Nigerians to turn to cryptocurrency as an alternative means of transaction and investment. This has placed platforms like Binance under increased regulatory and legal pressure.

The government’s actions against Binance highlight the ongoing tension between traditional financial authorities and the rapidly evolving cryptocurrency market. As Nigeria navigates its economic challenges, the resolution of these legal issues will likely have significant implications for the future of cryptocurrency in the country.