Nigerian Court Delays Binance Tax Evasion Trial to May 17

A Nigerian court has adjourned the hearing of a tax evasion lawsuit against cryptocurrency exchange Binance and its executives to May 17. The tax charges, filed by the Federal Inland Revenue Service (FIRS), include non-payment of taxes and aiding customers in evading taxes. Binance's regional manager for Africa, Tigran Gambaryan, was present in court but refused to plead, arguing that Binance, as the primary defendant, must be served first. The adjournment follows a previous postponement due to the FIRS's failure to serve Gambaryan.

Nigerian Court Postpones Tax Evasion Trial Against Binance and Executives

In a significant development in the ongoing regulatory standoff between the Nigerian government and Binance, a Nigerian court has rescheduled the hearing of a tax evasion lawsuit against the Malta-based cryptocurrency exchange and two of its executives to May 17.

Tax Case Adjourned Due to Legal Impasse

On March 22, the Nigerian Federal Inland Revenue Service (FIRS) filed charges against Binance and two of its executives, Nadeen Ahjarwalla, Head of Financial Crime Compliance, and Tigran Gambaryan, Regional Manager for Africa, alleging four counts of tax evasion.

The charges included failure to pay Value-Added Tax (VAT), Company Income Tax, file tax returns, and aiding customers in evading taxes through its platform. The FIRS's accusations stemmed from Binance's initial failure to register with the Nigerian authorities before offering services to Nigerian citizens.

The case was presented for an initial hearing on April 19, with only Gambaryan present in court. Ahjarwalla had reportedly fled Nigeria prior to the charges being filed. Gambaryan initially refused to enter a plea, citing the FIRS's failure to serve Binance with the tax evasion charges.

However, the prosecution argued that Gambaryan, as a US citizen, had a responsibility to defend both himself and Binance against the charges. Gambaryan's lawyer countered that Binance, as the primary defendant in the joint charges, must be served by the FIRS before Gambaryan could plead his case, as per Nigerian constitutional law.

Due to this legal impasse, Justice Emeka Nwite of the Federal High Court in Abuja adjourned the case to May 17, when he is expected to provide a final ruling on the matter. This marks the second adjournment in the FIRS's tax evasion case against Binance, following an initial postponement on April 4 due to the FIRS's failure to serve Gambaryan ahead of the trial.

Binance's Regulatory Troubles in Nigeria

Binance's operations in Nigeria have been under intense scrutiny by government agencies. In addition to the tax evasion charges, the Nigerian Economic and Financial Crimes Commission (EFCC) has accused Binance of laundering over $35 million.

The Nigerian government has been particularly critical of Binance's alleged role in contributing to the devaluation of the Nigerian naira through speculation and rate manipulation. These allegations led to the arrests of Gambaryan and Ahjarwalla in February after they visited Nigeria amidst reports of the government blocking access to Binance and other cryptocurrency exchanges.

Binance has since disabled naira-related services on its platform and has expressed a willingness to cooperate with the Nigerian government to resolve the ongoing legal issues. However, the recent adjournment of the tax evasion trial underscores the complex and ongoing regulatory challenges facing Binance in Nigeria.