Court Sets Date for Binance Executives’ Money Laundering, Tax Charges

On March 28, the anti-graft agency formally pressed charges against Binance executives, alleging that the trio engaged in laundering $35,400,000.

The Federal High Court in Abuja has scheduled a date for the formal charging of Binance Holdings Limited, alongside two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, slated for Thursday.

VerseNews reports that following their evasion from police custody on March 22, the company, Gambaryan, and Anjarwalla are set to appear before Justice Emeka Nwite to address two separate charges.

The Economic and Financial Crimes Commission (EFCC) has brought forward a case against them regarding money laundering, comprising five charges.

Additionally, the Federal Inland Revenue Service (FIRS) has submitted a second case with four charges, alleging various tax violations against the accused.

The EFCC is anticipated to arraign him in his absence. On March 28, the anti-graft agency formally pressed charges, alleging that the trio engaged in laundering $35,400,000.

The primary count accuses the defendants of operating a specialized financial institution business in Abuja from January 2023 to January 2024 without proper licensing. This contravenes Section 57(1) and (2) of the Banks and Other Financial Institutions Act, 2020, punishable under Section 57(5) of the same Act.

Under case number FHC/ABJ/CR/115/2024, the three defendants are scheduled to face four counts before Justice Nwite.

According to reports, the Easter recess of the Federal High Court (FHC), from March 22 to April 8, led Chief Judge Justice John Tsoho to transfer the Binance case file to Justice Nwite, despite him not being the vacation judge. The chief judge granted the fiat for the judge to preside over the case during vacation, deeming it a matter of national interest.

Additional Charges Leveled Against Binance

VerseNews recalls that the Federal Inland Revenue Service (FIRS) in Abuja initiated legal action against cryptocurrency exchange Binance, citing four counts of tax evasion.

The allegations against Binance encompass the failure to remit Value Added Tax (VAT), Company Income Tax (CIT), non-compliance with tax return filing obligations, and facilitating tax evasion for its users.

Moreover, the federal government’s lawsuit accuses Binance of non-registration for tax purposes with the FIRS and violating the nation’s tax regulations.

“One of the charges in the lawsuit pertains to Binance’s alleged failure to collect and remit various tax categories to the federation, as mandated by Section 40 of the FIRS Establishment Act 2007 as amended,” the agency disclosed.

“Section 40 of the Act explicitly addresses the non-deduction and non-remittance of taxes, prescribing penalties and potential imprisonment for defaulting entities,” the agency stated.

As of now, Binance has not issued a response to these allegations.

In response to allegations of manipulating foreign exchange rates, the federal government has intensified its scrutiny of cryptocurrency trading platforms, resulting in stricter regulation of digital currency exchanges.

On February 28, Nigerian authorities apprehended two senior Binance officials: Nadeem Anjarwalla, a 37-year-old British-Kenyan serving as the African regional manager, and Tigran Gambaryan, a 39-year-old American overseeing financial crime compliance at Binance.

However, Anjarwalla reportedly absconded from lawful custody, as stated in an official announcement from the office of the National Security Adviser (ONSA).

Conversely, Tigran Gambaryan, the second official, initiated legal action against the federal government, the Office of the National Security Adviser (NSA), and the Economic and Financial Crimes Commission (EFCC), seeking an apology for his detention in the country.

Gambaryan revealed this in his Fundamental Rights suit filed under FHC/ABJ/CS/356/2024, alleging that the federal government is exploiting his ongoing detention as leverage to impose demands on Binance.