Federal High Court of Nigeria Drops Tax Evasion Charges Against Binance Executives
By Kaila Hall
On June 14, 2024, the Federal High Court of Nigeria discharged[1] two executives of the cryptocurrency exchange platform Binance after the Federal Inland Revenue Service (FIRS) charged them with tax evasion. The amended charges by the FIRS effectively dropped charges against Tigran Gambaryan and Nadeem Anjarwalla. In response to the decision, Binance expressed its relief and commended the FIRS “for their diligence and professionalism throughout this process. This situation unequivocally demonstrates Binance’s commitment to resolving this issue with the government transparently and cooperatively.” Binance also called on the Economic and Financial Crimes Commission to follow the Federal High Court’s decision and allow an ailing Gambaryan to return home to his family. It has been reported that he collapsed in court on May 23 and was recently diagnosed with malaria and pneumonia.
On February 28, 2024, Nigerian officials arrested[2] Tigran Gambaryan, Binance’s Head of Financial Crime Compliance, and his colleague, Nadeem Anjarwalla upon their arrival in the country for a meeting on the government ban on cryptocurrency channels. While Gambaryan remained in custody, Anjarwalla fled Nigeria in March. On March 22, 2024, the FIRS filed tax evasion charges against both executives. This legal action came after Binance recently appointed Ayodele Omotilewa to handle the platform’s Nigerian Operations.[3] Gambaryan and Anjarwalla have both pleaded not guilty to all charges.
Amid the Nigerian naira currency debacle,[4] Nigerians have begun relying on cryptocurrencies to protect their savings from the 33.2% inflation rate.[5] Binance has become the primary platform for cryptocurrency trading in the country, prompting concern from the Nigerian government.[6]
Although FIRS has dropped tax evasion charges against both Binance executives, Gambaryan and Anjarwalla continue to face separate money laundering charges nonetheless.[7] Following their February 28 arrests, the Economic and Financial Crimes Commission (EFCC) accused Binance of laundering more than $35m through its platform.[8] On May 16, Olanipekun Olukoyede, Head of EFCC, stated that virtual currency trading and cryptocurrencies “are potential platforms to fund terrorism.”[9]
The EFCC trial is set to continue on June 20. Gambaryan remains in the Kuje prison.
In early June, 16 Members of Congress sent a letter to President Biden and Secretary of State Antony Blinken, requesting their assistance to release Gambaryan, a wrongfully detained American citizen.[10] The letter described the “excessive and harsh treatment” that Gambaryan has faced while detained in the notorious Kuje prison on baseless charges by the Nigerian government. Congressmen also noted that he was denied access to his legal team “without the presence of government officials and armed guards.” The Members of Congress argued that Gambaryan qualifies as a “U.S. Citizen wrongfully detained by a foreign government,” as defined in the “Robert Levinson Hostage Recovery and Hostage-Taking Accountability Act.” As Gambaryan’s health deteriorated, these Congressmen urged President Biden to take immediate action to preserve Gambaryan’s life.
[1] Ige, Olugbenga. “Binance Reacts as FG Drops Tax Charges against Executives.” Punch Newspapers, 14 June 2024, punchng.com/binance-reacts-as-fg-drops-tax-charges-against-executives/#:~:text=Crypto%20exchange%20platform%2C%20Binance%20has.
[2] Egbejule, Eromo. “Binance Executive Denied Bail in Nigeria over Money Laundering Charges.” The Guardian, 17 May 2024, www.theguardian.com/technology/article/2024/may/17/binance-executive-denied-bail-in-nigeria-over-money-laundering-charges. Accessed 18 June 2024.
[3] Sigalos, MacKenzie, & Smith, Elliot. “Binance Executive Escapes Nigerian Custody as Authorities File New Tax Charges.” CNBC, 25 Mar. 2024, www.cnbc.com/2024/03/25/binance-executive-escapes-nigerian-custody-as-authorities-file-new-tax-charges.html.
[4] Smith, Elliot. “Nigeria Battles to Halt Spiraling Currency Crisis and Rising Food Insecurity.” CNBC, 5 Mar. 2024, www.cnbc.com/2024/03/05/nigeria-battles-to-halt-spiraling-currency-crisis-and-rising-food-insecurity.html.
[5] Central Bank of Nigeria. “Central Bank of Nigeria: Money and Credit Statistics.” Www.cbn.gov.ng, 2023, www.cbn.gov.ng/rates/inflrates.asp.
[6] Eboh, Camillus. “Nigeria Drops Tax Charges against Binance Executives.” Reuters, 14 June 2024, www.reuters.com/business/finance/nigeria-drops-tax-charges-against-binance-executives-2024-06-14/.
[7] Eboh, Camillus. “Nigeria Drops Tax Charges against Binance Executives.” Reuters, 14 June 2024, www.reuters.com/business/finance/nigeria-drops-tax-charges-against-binance-executives-2024-06-14/.
[8] Egbejule, Eromo. “Binance Executive Denied Bail in Nigeria over Money Laundering Charges.” The Guardian, 17 May 2024, www.theguardian.com/technology/article/2024/may/17/binance-executive-denied-bail-in-nigeria-over-money-laundering-charges.
[9] Oluwafemi, Ayodele. “Olukoyede: Some Youths Trading Crypto Unaware They’re Being Used to Fund Terrorism.” TheCable, 16 May 2024, www.thecable.ng/olukoyede-some-youths-trading-crypto-unaware-theyre-being-used-to-fund-terrorism/.
[10] U.S. Congress. “Letter to President Biden, Secretary Blinken, and Special Presidential Envoy Carstens.” House Foreign Affairs Committee, 4 June 2024, foreignaffairs.house.gov/wp-content/uploads/2024/06/McCormick-Letter-Gambaryan.pdf.
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