The Nigerian Federal Government has officially filed charges against Binance, the global cryptocurrency exchange. The charges, submitted to the country’s High Court on Monday, accuse Binance of multiple counts of tax evasion. The Federal Inland Revenue Service (FIRS), Nigeria’s tax authority, is leading the case and claims that Binance has failed to fulfill its various tax obligations.
The charges against Binance include allegations of non-payment of value-added tax, company income tax, and failure to file tax returns. FIRS also accuses Binance of assisting its customers in evading taxes. The lawsuit further states that Binance did not register with FIRS, thus violating the country’s tax regulations.
The controversy has resulted in the detention of two high-ranking Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, upon their arrival in Nigeria’s capital, Abuja, on February 26. The arrests are part of an investigation into the alleged illegal profits earned by Binance through transactions in Nigeria. Gambaryan and Anjarwalla were officially charged with criminal offenses on February 28.
Binance has refrained from commenting on the specific details of the lawsuit but has expressed its commitment to cooperate with Nigerian authorities. The exchange is focused on ensuring the safe return of its employees. In a surprising turn of events, Anjarwalla escaped custody after being allowed to attend Friday prayers. Reports suggest that he used a Kenyan passport to flee the country after Nigerian officials confiscated his British passport.
Binance has confirmed that Anjarwalla is no longer in Nigerian custody and has stated that the safety of its employees is its main concern. The company is actively working with Nigerian authorities to resolve the situation. An investigation has been launched to determine how Anjarwalla obtained his passport and his current whereabouts.
The controversy arises as Binance recently decided to discontinue support for the Nigerian naira on its platform. This decision came after ongoing regulatory conflicts and requests from Nigerian regulators for information regarding Binance’s top 100 users in Nigeria. The ongoing legal battle and regulatory scrutiny highlight the tense relationship between Binance and Nigerian authorities.
