Tensions between Binance and the Nigerian government have reached a boiling point, with allegations of tax evasion and money laundering casting a shadow over the exchange’s operations in the country. The latest development—a delayed arraignment in the Federal Inland Revenue Service’s (FIRS) tax evasion case—has only deepened the legal quagmire.
Arraignment Postponed Yet Again
On October 11, hopes of moving the case forward were dashed as proceedings hit another procedural snag. Despite being scheduled to formally charge Binance on tax-related offenses, the FIRS failed to make headway. The defense team, led by Senior Advocate of Nigeria (SAN) Chukwuka Ikuazom and Elizabeth Tijani from Aluko & Oyebode, criticized the prosecution for not sharing key documents, which they had requested since October 9.
Prosecutor Moses Ideho, however, denied receiving the defense’s request, causing a standoff in the courtroom. With neither side yielding, Justice Emeka Nwite of the Federal High Court adjourned the matter to November 7, 2024.
What’s Behind the Case?
The FIRS filed a four-count charge against Binance in March 2024, accusing the exchange of:
- Non-payment of Value-Added Tax (VAT)
- Non-payment of Company Income Tax
- Failure to submit tax returns
- Aiding customers in tax evasion through its platform
The FIRS argued that Binance’s substantial business operations in Nigeria make the exchange accountable under the country’s tax regulations. However, the case has been marred by delays, procedural missteps, and now, legal gridlock.
Money Laundering Charges Add to Binance’s Troubles
Compounding Binance’s challenges, the exchange is also facing a separate money laundering investigation by Nigeria’s Economic and Financial Crimes Commission (EFCC). The extended detention of Tigran Gambaryan, Binance’s chief financial crime compliance officer, underscores the seriousness of the allegations. As the legal pressure mounts, the exchange’s future in Nigeria hangs in the balance.
What’s Next?
With the tax evasion case now postponed to November 7, the prosecution and defense will need to resolve their documentation dispute to avoid further delays. Meanwhile, the parallel money laundering case continues to unfold, adding another layer of complexity to Binance’s legal battles in Nigeria.
As the exchange navigates these turbulent waters, all eyes remain on the upcoming court sessions. Will Binance find a resolution, or will the Nigerian authorities tighten the noose further? One thing is certain: the outcome will have significant implications for the exchange’s operations in Africa’s largest economy.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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