TLDR
- A Nigerian court has set October 11, 2024 as the verdict date for Binance’s tax evasion trial.
- Binance faces four counts of tax evasion, including failure to register with Nigeria’s Federal Inland Revenue Service.
- Binance’s lawyer entered a not-guilty plea and urged the judge to dismiss the charges.
- Two Binance executives were previously cleared of tax evasion charges but still face money laundering allegations.
- Nigerian authorities claim cryptocurrency platforms like Binance are contributing to currency issues in the country.
A Nigerian court has scheduled October 11, 2024, as the date to deliver a verdict in the tax evasion trial against cryptocurrency exchange Binance.
The case, which has been ongoing since earlier this year, involves four counts of tax evasion, including the failure to register with Nigeria’s Federal Inland Revenue Service (FIRS).
On July 12, 2024, Binance’s lawyer, Ayodele Omotilewa, appeared in court before Judge Emeka Nwite to enter a not-guilty plea for all charges. Omotilewa also urged the judge to dismiss the case, arguing that it lacks substance.
This move follows a similar dismissal of charges against two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, in June 2024.
The case against Binance began in February 2024 when Nigerian authorities detained Gambaryan, a U.S. citizen, and Anjarwalla, a British-Kenyan national, during their visit to Nigeria. The executives were held for several weeks amid allegations of tax evasion and money laundering.
While the Federal High Court in Abuja later cleared them of tax evasion charges, they still face separate money laundering allegations, which both deny.
Following these events, Binance appointed Omotilewa to handle its local operations in Nigeria. The FIRS then submitted amended charges that dropped the tax evasion allegations against the two executives but maintained charges against the exchange itself.
The legal proceedings against Binance are part of a broader crackdown on cryptocurrency activities in Nigeria.
The country’s authorities claim that cryptocurrency platforms have become a preferred method for trading the Nigerian naira, contributing to severe dollar shortages and the fiat currency’s record low value.
Nigeria’s National Security Adviser has stated that cryptocurrency trading poses a national security risk.
In response, the Central Bank of Nigeria (CBN) has instructed fintech companies to identify and report accounts involved in cryptocurrency transactions and take appropriate action to prevent further activity.
On July 6, 2024, the CBN’s payment policy and regulation chief appeared in court, arguing that only banks and authorized financial institutions should be allowed to process deposit and withdrawal transactions for Binance as part of the ongoing case.
The court’s decision to adjourn the case until October allows both the defense and prosecution additional time to prepare their arguments and review evidence.
