Key Takeaways
- Justice Emeka Nwite has scheduled October 11 to rule on the trial of Binance for alleged tax evasion.
- Binance’s lawyer, Ayodele Omotilewa, appeared in court on July 12, entering a not-guilty plea to all four charges before Judge Emeka Nwite
A Nigerian court announced on Friday that it will begin the trial of cryptocurrency exchange Binance on charges of tax evasion on October 11. The case involves Binance executives Tigran Gambaryan and Nadeem Anjarwalla, who face separate trials for tax evasion and money laundering.
Binance’s lawyer, Ayodele Omotilewa, appeared in court on July 12, entering a not-guilty plea to all four charges before Judge Emeka Nwite. Omotilewa urged the judge to dismiss the charges, arguing that the case lacks substance, similar to the previous dismissal of charges against Gambaryan and Anjarwalla.
In June, the Federal High Court in Abuja cleared Gambaryan and Anjarwalla of tax evasion charges. Gambaryan, a United States citizen, and Anjarwalla, a British Kenyan, still face separate money laundering charges, which they both deny.
The court’s decision to clear the executives of tax evasion followed the Federal Inland Revenue Service (FIRS) submitting amended charges that dropped these allegations. This shift occurred after Binance appointed Omotilewa to manage its local operations.
Judge Nwite’s decision to adjourn the case until October allows for further review of the evidence. This gives both the defense and the prosecution additional time to prepare their cases.
In February, Nigerian authorities detained Anjarwalla and Gambaryan during a visit to the country. They were held for several weeks amid allegations of tax evasion and money laundering.
While Binance has not commented on the recent developments, it previously argued that the charges should be dismissed. Nigeria has attributed its currency issues to Binance, claiming that cryptocurrency platforms have become the preferred method for trading the Nigerian naira amid severe dollar shortages and the naira’s record low value.
Earlier this month, The Central Bank of Nigeria (CBN) has accused Binance of operating without proper authorization, leading to charges of money laundering against its executives.
Nigeria has had a tumultuous relationship with crypto so far. In February 2021, CBN barred financial institutions from handling crypto-asset transactions. However, a circular issued on December 22, 2023, permitted certain virtual asset service provider (VASP) activities related to cryptocurrencies and crypto assets, subject to new guidelines.
In May 2024, Nigerian fintech platforms warned users against using their accounts for crypto transactions, threatening heavy sanctions amid the country’s ongoing efforts to regulate cryptocurrency.
