A Nigerian court’s ruling today (Friday) has paved the way
for Binance executive Tigran Gambaryan to stand trial on behalf of the
cryptocurrency exchange in an ongoing tax evasion case. Alongside Gambaryan, a
US citizen and Head of Financial Crimes Compliance, British-Kenyan national
Nadeem Anjarwalla, a Regional Manager for Africa, also faces four counts of tax
evasion.
In addition to the tax evasion charges, they have been
accused of laundering over $35 million and engaging in specialized financial
activities without a license. Despite the charges, all parties involved have
maintained their innocence regarding the money laundering accusations.
Concerns over Detentions During Crypto Talks
Following Friday’s court hearing, both Binance’s lawyer and
Gambaryan’s lawyer declined to offer comments. Gambaryan remains in custody,
while Anjarwalla reportedly fled the country in March. Efforts are underway by
Nigerian authorities, in collaboration with Interpol, to locate and apprehend
Anjarwalla.
The CEO of Binance has criticized Nigeria, alleging that the
country’s actions set a dangerous precedent. The executives were initially
invited to Nigeria in February for discussions with authorities but were
subsequently detained as part of a broader crackdown on cryptocurrency.
Nigeria Links Currency Woes to Crypto Platforms
Although Binance itself has not been charged in the tax
evasion case, Nigeria’s Federal Inland Revenue Service has indicated
that Gambaryan could face charges on the exchange’s behalf. Gambaryan’s lawyer
has argued that he had no formal role within Binance and no explicit
instructions to represent the company in legal matters.
Judge Emeka Nwite’s ruling on Friday determined that
Gambaryan should be served with the charges against Binance due to his position
as the chief financial compliance officer and his appointment to represent the
company during meetings in Nigeria.
Gambaryan is scheduled to appear in court on Wednesday to
enter a plea on behalf of Binance. However, his bail application related to the
money laundering case was denied.
Nigeria has attributed its currency challenges partly to
Binance, alleging that cryptocurrency platforms contributed to trading the
Nigerian naira amidst ongoing dollar shortages in the country.
This article was written by Tareq Sikder at www.financemagnates.com.
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