A Nigerian court has postponed the hearing of a tax evasion trial against Binance and some of its executives until May 17. The postponement represents the latest development in the ongoing regulatory saga between various Nigerian government agencies and the Malta-based cryptocurrency exchange.
Related reading: Extradition imminent? Nigerian Authorities Trace Binance Executive Fleeing to Kenya – Report
Tax case adjourned due to legal impasse
On March 22, Nigeria’s Federal Inland Revenue Service (FIRS) charged Binance and two of its executives, Nadeen Ahjarwalla, Head of Financial Crimes Compliance, and Tigran Gambaryan, Regional Director for Africa, with four counts of tax evasion.
These charges included “non-payment of value added tax, non-payment of corporate income tax, failure to file tax returns, and complicity in helping customers evade tax.” tax through its platform,” which the FIRS said was due to Binance’s inability to initially undergo a registration process before offering its services to Nigerians.
According to melocal news media BusinessDay, the case was presented for hearing on April 19, with only Tigran Gimbaryan present in court, Nadeen Ahjarwhalla having long fled the West African country. Gimbaryan reportedly refused to plead because the FIRS had not served Binance with tax evasion charges.
However, the prosecution argued that the American citizen should defend his interests and those of the crypto exchange against the accusations made. In response, Gambaryan’s lawyer said that since all parties were jointly charged, Binance, being the main defendant, had to be served by the IRS before his client could plead his case in accordance with the Nigerian constitution.
Following the legal impasse, Justice Emeka Nwite of the Federal High Court, Abuja, ruled that the matter be adjourned until May 17, when he will deliver a final judgment. This is the second time that the FIRS tax evasion case against Binance has been adjourned following a initial carryover on April 4 due to the failure of Nigeria’s tax regulator to serve Gambaryan before a stipulated legal trial.
Binance’s problems in Nigeria continue
The Binance exchange is currently stuck in a hostile regulatory situation with the Nigerian government. Aside from the tax evasion charges, the Nigerian Economic and Financial Crimes Commission (EFCC) also accused the major crypto exchange of laundering over $35 million.
The Nigerian government has increased regulatory oversight of Binance after accusing the exchange of played a major role in the massive devaluation of the Nigerian naira through speculation and rate fixing. The allegations were followed by the arrest of Gimbaryan and Ahjarwhalla, who had traveled to the West African country on February 26 following reports that the government was banning some access to Binance and other exchanges. cryptographic.
Binance has disabled all naira services on its platform and appears determined to resolve all legal issues related to the detention of its employees after the exchange’s CEO Richard Teng recently confirmed a willingness to cooperate with the Nigerian government.
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