A Nigerian court's ruling today (Friday) has paved the way for Binance executive Tigran Gambaryan to stand trial on behalf of the cryptocurrency exchange in an ongoing tax evasion case. Alongside Gambaryan, a US citizen and Head of Financial Crimes Compliance, British-Kenyan national Nadeem Anjarwalla, a Regional Manager for Africa, also faces four counts of tax evasion.
In addition to the tax evasion charges, they have been accused of laundering over $35 million and engaging in specialized financial activities without a license. Despite the charges, all parties involved have maintained their innocence regarding the money laundering accusations.
Concerns over Detentions During Crypto Talks
Following Friday's court hearing, both Binance's lawyer and Gambaryan's lawyer declined to offer comments. Gambaryan remains in custody, while Anjarwalla reportedly fled the country in March. Efforts are underway by Nigerian authorities, in collaboration with Interpol, to locate and apprehend Anjarwalla.
The CEO of Binance has criticized Nigeria, alleging that the country's actions set a dangerous precedent. The executives were initially invited to Nigeria in February for discussions with authorities but were subsequently detained as part of a broader crackdown on cryptocurrency.
Nigeria Links Currency Woes to Crypto Platforms
Although Binance itself has not been charged in the tax evasion case, Nigeria's Federal Inland Revenue Service has indicated that Gambaryan could face charges on the exchange's behalf. Gambaryan's lawyer has argued that he had no formal role within Binance and no explicit instructions to represent the company in legal matters.
Judge Emeka Nwite's ruling on Friday determined that Gambaryan should be served with the charges against Binance due to his position as the chief financial compliance officer and his appointment to represent the company during meetings in Nigeria.
Gambaryan is scheduled to appear in court on Wednesday to enter a plea on behalf of Binance. However, his bail application related to the money laundering case was denied.
Nigeria has attributed its currency challenges partly to Binance, alleging that cryptocurrency platforms contributed to trading the Nigerian naira amidst ongoing dollar shortages in the country.
