Nigerian Court Rules Binance Executive Can Stand Trial on Tax Evasion Charges

The ongoing tax evasion case involving cryptocurrency exchange Binance and its executives has taken a new turn in Nigeria as the court ruled that Binance executive Tigran Gambaryan can stand trial on behalf of the exchange. The Nigerian court made this decision on Friday, allowing Gambaryan, who is a U.S. citizen and head of financial crimes compliance at Binance, to face the four counts of tax evasion charges.

In addition to the tax evasion charges, Binance, Gambaryan, and British-Kenyan national Nadeem Anjarwalla, a regional manager for Africa, are also facing allegations of money laundering amounting to over $35 million and engaging in specialized financial activities without a license. Despite pleading not guilty to the money laundering charges, Gambaryan remains in custody while Anjarwalla fled the country in March.

The CEO of Binance has criticized Nigeria for detaining its executives, accusing the country of setting a dangerous precedent after inviting them for talks in February. Binance itself has not been charged in the tax evasion case by Nigeria’s Federal Inland Revenue Service (FIRS), but Gambaryan has been appointed to represent the exchange in the legal proceedings.

Gambaryan’s lawyer has argued that he has no decision-making power in the company and should not be facing these charges on behalf of Binance. However, the court ruled that Gambaryan, as the chief financial compliance officer of Binance, should stand trial on behalf of the exchange.

The case has sparked ongoing debates about the accountability of cryptocurrency exchanges and their executives in compliance with tax laws and financial regulations. Gambaryan is set to be arraigned in court on Wednesday to take a plea on behalf of Binance, while his bail application in relation to the money laundering case was denied on Friday.

The outcome of this trial could have significant implications for the cryptocurrency industry in Nigeria and beyond, as regulators continue to grapple with how to enforce tax and financial regulations in the rapidly evolving digital asset space.