A High Court in Abuja has scheduled the verdict for the tax evasion trial against the popular cryptocurrency platform Binance for Oct. 11, 2024. Binance faces four counts of tax evasion, including failing to register with Nigeria’s Federal Inland Revenue Service (FIRS) for tax purposes.
According to local media, Binance’s lawyer, Ayodele Omotilewa, appeared in court on Friday, July 12, pleading not guilty to all four charges before Judge Emeka Nwite.
Case adjourned until October
Omotilewa urged the judge to dismiss the charges, arguing that the case lacks substance, similar to the previous dismissal of charges against Binance executives Tigran Gambaryan and Nadeem Anjarwalla.
In June, a Federal High Court in Abuja cleared Gambaryan and Anjarwalla of tax evasion charges. Gambaryan, an American, and Anjarwalla, a British Kenyan who fled to Kenya, still face separate money laundering charges, which they both deny.
The court’s decision followed FIRS’s submission of amended charges that effectively dropped the tax evasion allegations against the two executives. This change came after Binance appointed a Nigerian representative, Ayodele Omotilewa, to handle its local operations.
Judge Nwite’s decision to adjourn the case until October allows for further deliberation and review of the evidence presented. This gives the defense and the prosecution additional time to prepare their respective cases.
Background of case
In February, Nigerian authorities detained two senior Binance executives, Nadeem Anjarwalla and Tigran Gambaryan, during a visit to Nigeria. They were held for several weeks amid allegations of tax evasion and money laundering.
While Binance has not commented on the latest developments, it previously stated that the charges should be dismissed. However, Nigeria has attributed its currency issues to Binance, noting that cryptocurrency platforms have become the preferred method for trading the Nigerian naira amid severe dollar shortages and the currency’s record low value.
The crackdown on cryptocurrency activities is consistent with the National Security Adviser’s stance that cryptocurrency trading poses a national security risk. As part of this effort, the CBN instructed fintech companies to identify and report accounts involved in cryptocurrency transactions and take appropriate action to prevent further activity.
The CBN payment policy and regulation chief appeared in court on July 6, 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.