- Nigeria’s tax authority has not served Binance with the charges, causing the trial to stall.
- The crypto exchange and its executives also face charges of laundering over $35 million, with this trial scheduled to resume on May 2.
A court in Nigeria has adjourned the tax evasion trial against Binance and two of its executives until May 17 due to procedural issues. The delay comes as the cryptocurrency exchange has not been formally served with the charges, complicating the legal proceedings.
The trial, which involves allegations of tax evasion by Binance and its executives Tigran Gambaryan and Nadeem Anjarwalla, was stalled because the Federal Inland Revenue Service (FIRS) had not served the exchange with the charges. Gambaryan, a U.S. citizen and head of financial crime compliance, and Anjarwalla, a British-Kenyan regional manager for Africa, face four counts of tax evasion charges.
According to a local media publication BusinessDay, the FIRS argued that Gambaryan should represent Binance as the primary defendant since the exchange and its executives were charged together. However, Gambaryan’s lawyer objected, citing Nigerian law, which requires the primary defendant to be served before entering a plea.
See Related: Binance Executives Sue Nigerian Government For Detainment
Legal Ramifications and Additional Charges
In addition to the tax evasion trial, Binance and its executives face charges of laundering over $35 million brought by Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission. This trial is scheduled to resume on May 2.
Despite not being represented in court, Binance stated that it is working closely with Nigerian authorities following Gambaryan’s detention. However, the legal battle continues as Gambaryan remains in custody, with his bail application hearing postponed.
Gambaryan has also sued the government for violating his fundamental human rights. His motion claims that his detention and passport confiscation violate Nigeria’s constitution, which guarantees personal liberty. As the case unfolds, stakeholders await further developments and potential implications for the crypto industry in Nigeria and beyond.
