A Nigerian court has postponed the arraignment hearing for cryptocurrency exchange Binance and its executives on tax evasion charges. The trial was scheduled for Wednesday but came to a halt due to the unexpected absence of Tigran Gambaryan, a U.S. citizen and Binance’s head of financial crime compliance.
Uncertainties Surround Gambaryan’s Absence
The reason for Gambaryan’s no-show remains unclear. Nigerian authorities haven’t provided any explanation for why he wasn’t brought to court. This development comes on the heels of a recent court decision allowing Gambaryan to represent Binance in the tax evasion case.
Heightened Tensions
This incident further strains the already tense relationship between Binance and Nigerian authorities. Binance CEO Changpeng Zhao (CZ) previously criticized Nigeria’s decision to detain its executives while they were engaged in discussions about regulations.
Specific Charges Outlined
The company and its executives, including Nadeem Anjarwalla (Binance’s regional manager for Africa), are facing four separate charges related to tax evasion. These charges allege that Binance failed to register with the Nigerian tax agency, the Federal Inland Revenue Service (FIRS), for tax purposes. They also include accusations of not filing tax returns and potentially enabling its Nigerian users to evade taxes through the platform.
Complicating Factor: Escaped Defendant
Anjarwalla, a British-Kenyan national, escaped custody in March. His absence from court presents an additional hurdle, as Nigerian law mandates that all parties involved in a case be served before the trial can proceed. Gambaryan’s lawyer, Chukwuka Ikwuazom, emphasized this legal requirement.
Confusion and Next Steps
The lawyer representing the revenue service, Moses Ideho, expressed his own confusion regarding Gambaryan’s absence. Ideho stated that the prison service was responsible for presenting Gambaryan in court.
Judge Emeka Nwite has rescheduled the possible arraignment of Binance and Gambaryan for June 14th.
Beyond Tax Evasion: Money Laundering Charges
In addition to the tax evasion case, Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC), has accused Binance and the executives of laundering over $35 million. A separate trial on these money laundering charges is scheduled for Thursday.
Binance’s Cooperation Efforts
Following the detention of its executives, Binance has maintained a stance of cooperation with Nigerian authorities. The company has expressed a willingness to work with the FIRS to determine any tax obligations it may have in Nigeria. However, Binance has also argued that the Nigerian government’s actions set a dangerous precedent for international businesses operating in the country.
