Binance Executive detained in Nigeria managed to escape custody, while the Nigerian government has levied fresh tax evasion charges against the global cryptocurrency exchange. Nigeria’s Federal Inland Revenue Service (FIRS) revealed that four new charges related to tax evasion have been filed at the Federal High Court in Abuja.
Charges Against Binance
The charges against Binance include alleged non-payment of Value-Added Tax (VAT) and company income tax
failure to submit tax returns, and complicity in aiding customers to evade taxes through its platform. Alongside the company, two senior executives, Tigran Gambaryan and Nadeem Anjarwalla, were charged and remanded in custody by Nigerian authorities.
Escape and International Response
Reports emerged that Nadeem Anjarwalla escaped from custody
prompting the Nigerian government to engage with Interpol to secure an international arrest warrant for him. Binance has expressed its focus on ensuring the safety of its employees and
is collaborating with Nigerian authorities to address the situation.
Family Statements
Family members of the detained executives issued statements, expressing their anguish and calling for their release. Anjarwalla’s wife, Elahe Anjarwalla, pleaded for his return, emphasizing his lack of authority to make high-level decisions at Binance. Gambaryan’s wife, Yuki, highlighted his contributions to law enforcement and urged authorities to allow him to continue his work.
Background and Government Concerns
The detention of Gambaryan and Anjarwalla occurred on February 26
with the Nigerian government initially accusing Binance of negatively impacting the country’s local currency. Nigeria has raised concerns about the lack of transparency regarding money flows through the exchange and
alleged facilitation of speculation on the naira’s price through Binance’s peer-to-peer marketplace.
Binance’s Response and Past Incidents
Binance has faced scrutiny in Nigeria before, with the Securities and Exchange Commission issuing warnings against doing business with the exchange in July 2023. The government expressed concerns about the risks associated with investing through Binance, citing potential total loss of investments.
Conclusion
The situation involving Binance Executive in Nigeria highlights ongoing regulatory challenges in the cryptocurrency space. The escape of one executive and the filing of new tax charges add complexity to the legal and regulatory landscape. The outcome of this case will likely have implications for Binance’s operations in Nigeria and may influence regulatory approaches towards cryptocurrency exchanges globally.
This development underscores the importance of compliance and transparency in the cryptocurrency industry and emphasizes the need for collaboration between governments and industry stakeholders to address
regulatory concerns and ensure a secure environment for investors and users.