The Federal Government of Nigeria has officially lodged charges against the global cryptocurrency exchange Binance. The accusations, filed at the country’s High Court on Monday, include several counts of tax evasion. The Federal Inland Revenue Service (FIRS), Nigeria’s tax authority, spearheads the case, alleging Binance’s failure in various tax obligations.
The charges against Binance encompass non-payment of value-added tax, company income tax, and failure to file tax returns. Additionally, FIRS accuses Binance of aiding its customers in evading taxes. The lawsuit further states that Binance did not register with FIRS, violating the nation’s tax regulations.
Binance senior executives detained amid allegations
Two high-ranking executives from Binance, Tigran Gambaryan and Nadeem Anjarwalla, find themselves entangled in the controversy. Authorities detained both men upon their arrival in Abuja, Nigeria’s capital, on February 26. The arrests were part of investigations into illegal transaction profits allegedly earned by Binance in Nigeria. Criminal charges were filed against Gambaryan and Anjarwalla on February 28.
Binance, while refraining from commenting on the lawsuit’s specifics, expressed its commitment to cooperating with Nigerian authorities. The exchange aims to secure the safe return of its employees. In a dramatic turn of events, Anjarwalla escaped custody after being allowed to attend Friday prayers. Reports suggest he fled the country using a Kenyan passport after Nigerian officials seized his British passport.
Response and regulatory conflict
Binance has confirmed that Anjarwalla is no longer under Nigerian custody. The company emphasizes the safety of its employees as its primary concern. Efforts are underway to resolve the situation in collaboration with Nigerian authorities. The escape has sparked an investigation into how Anjarwalla accessed his passport and his subsequent whereabouts.
The controversy arrives amid Binance’s decision to cease support for the Nigerian naira on its platform. This move followed persistent regulatory conflicts and requests from Nigerian regulators for information on Binance’s top 100 users in Nigeria. The unfolding legal battle and regulatory scrutiny underscore the tense relationship between Binance and Nigerian authorities.
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