- Binance appoints local legal representative in Nigeria, leading to withdrawal of tax evasion charges against two executives.
- Nigerian authorities accuse Binance of facilitating over $26 billion in unauthorized transfers, exacerbating currency instability.
Nigeria has recently withdrawn tax evasion allegations against two senior officials from Binance, the largest cryptocurrency trading platform by volume. The dismissal followed Binance’s strategic move to appoint a local representative to address all legal matters concerning the allegations.
Nevertheless, the two executives, including Tigran Gambaryan, a U.S. citizen and Binance’s head of financial crimes compliance, and Nadeem Anjarwalla, a British-Kenyan national who manages the platform’s operations in Africa, are still confronting charges related to money laundering.
Tigran Gambaryan was arrested by Nigerian authorities on February 26, while Nadeem Anjarwalla managed to leave Nigeria in March. Since his arrest, Gambaryan has been held with limitations, having restricted access to communicate freely with his family or his legal team.
In response to the court’s latest decision, a spokesperson from Binance has stated their belief that Gambaryan’s role at Binance did not justify his detention and expressed hope for his complete acquittal in the remaining legal matters.
Despite the clearance from tax evasion charges, the issues surrounding allegations of money laundering persist. The Nigerian Federal Inland Revenue Service has officially removed both Gambaryan and Anjarwalla as defendants in the tax evasion case, yet they remain implicated in the money laundering accusations.
Furthermore, the Nigerian government has accused Binance of contributing to financial instability in the country by facilitating over $26 billion in unauthorized transfers and an additional $35.4 million in money laundering. These activities are said to exacerbate the challenges facing the Nigerian Naira, which has been struggling against persistent dollar shortages and depreciation.
Binance has vigorously denied all accusations, with Gambaryan and Anjarwalla both maintaining their innocence concerning these charges.
The situation underscores the complex regulatory environment facing global cryptocurrency platforms as they comply with local laws in the countries they operate. This case is particularly significant as it may set precedents for how cryptocurrency exchanges are regulated and treated in Nigeria and potentially other nations.
As this legal battle unfolds, the cryptocurrency market continues to watch closely. Currently, Binance Coin (BNB) is priced at $610, showing stability in the last 24 hours but reflecting a decrease of over 13% from the previous week, following a recent high of $725.
