The Nigerian government has accused Binance, the world’s largest cryptocurrency exchange, of evading taxes. The Federal Inland Revenue Service (FIRS) filed four counts of tax evasion charges against Binance at a Federal High Court in Abuja on March 22. This move comes amid escalating tensions between the two entities.
According to local media reports, FIRS named Nadeem Anjarwalla and Tigran Gambaryan as defendants in the lawsuit alongside Binance. Anjarwalla, one of Binance’s executives, had escaped from the custody of the Economic and Financial Crimes Commission (EFCC) on the same day the charges were filed. Gambaryan remains in custody.
Allegations Against Binance
The charges accuse Binance of failing to deduct value-added taxes (VATs) from cryptocurrency trades on its platform. Additionally, the exchange is accused of aiding users in neglecting their taxes. FIRS also claims that Binance did not register with the agency to pay relevant taxes and failed to issue VAT tax invoices to users.
These accusations come amidst the Nigerian government’s scrutiny of Binance for potential involvement in money laundering and terrorist financing activities. Recently, a court ordered Binance to provide comprehensive data on local users and transaction records for the past six months.
Binance Exec Escapes From EFCC Custody
Anjarwalla’s escape caught authorities off guard. Reports suggest he left the country using a Kenyan passport after being escorted from detention to a nearby mosque for prayers during Ramadan. Meanwhile, Gambaryan remains detained. The court has extended their detention for another two weeks as investigations continue.
