The tax evasion trial involving cryptocurrency exchange Binance and two of its executives in Nigeria has faced a postponement to May 17 due to a procedural issue: the exchange has yet to formally receive the charges.
According to a report from local news agency BusinessDay, the Federal Inland Revenue Service (FIRS) has not officially filed tax evasion charges against Binance. The FIRS lawyers have been served, arguing that Tigran Gambaryan should represent Binance as the lead defendant since both the exchange and its executives were charged together.
However, Gambaryan’s lawyer, Chukwuka Ikuazom, objected, citing Nigerian law, asserting that a defense cannot be mounted until the primary defendant, Binance, is formally served. Consequently, Justice Emeka Nwite has adjourned proceedings until May 17, when he will deliver his ruling on the matter.
The trial involves Binance and its executives, including Tigran Gambaryan and Nadeem Anjarwala, who were arrested on February 28 and charged with four counts of tax evasion during a visit to Nigeria. These arrests followed the Nigerian government's ban on cryptocurrency channels as part of efforts to curb currency speculation.
The charges against Binance relate to its failure to register with the Federal Inland Revenue Service (FIRS) of Nigeria for tax remittance. While Gambaryan appeared in court in Abuja on Friday, Anjarwala was not present as he had fled custody and left the country in March 2024.
In addition to the tax evasion trial, Binance and its executives face allegations of laundering over $35 million by Nigeria’s anti-corruption agency, the Economic and Financial Crimes Commission (EFCC). The trial for these charges is scheduled to resume on May 2. Despite not being present in court, Binance stated during the Token2049 cryptocurrency conference in Dubai that it was cooperating closely with Nigerian authorities following Gambaryan's detention.
Meanwhile, Tigran Gambaryan has filed a lawsuit against the government for violating his fundamental human rights. His motion argues that his detention in Nigeria and the confiscation of his passport contravene the country's constitution, which guarantees an individual's right to personal liberty.
