Nigeria Drops Tax Charges Against Binance Execs Amidst $26 Billion Money Laundering Case

• The Nigerian Federal Inland Revenue Service (FIRS) has reportedly dropped some tax charges against two Binance executives.
• Authorities had previously investigated a $26 billion transfer linked to these executives.
• Despite the dropped tax charges, the money laundering case against Binance remains active.

Nigerian authorities have dropped certain tax charges against two Binance executives amid an ongoing investigation into alleged financial crimes by the cryptocurrency exchange.

Tax Charges Dropped by Nigerian Authorities

The Federal Inland Revenue Service (FIRS) of Nigeria has decided to drop tax-related charges against Tigran Gambaryan and Nadeem Anjarwalla, two prominent figures within Binance. This decision is part of an ongoing legal struggle involving the cryptocurrency exchange and Nigerian regulatory bodies. This follows reports of an alleged illicit transfer amounting to $26 billion, implicating the executives in potential financial misconduct.

Details of the Initial Charges

Back in February 2024, Gambaryan and Anjarwalla were detained over severe accusations, including money laundering, tax evasion, and aiding and abetting these crimes through Binance’s platform. However, the charges have since been modified. Now, only Binance and its local counsel have been named as defendants in the tax-related allegations. Gambaryan, who has been unwell, will no longer need to attend court for these particular charges.

Money Laundering Case Continues

Despite the relief provided by the dismissal of the tax charges, the money laundering case continues to pose significant challenges for the Binance executives. Both Gambaryan and Anjarwalla remain actively involved in this aspect of the legal proceedings. Binance has argued that Gambaryan, who holds the position of Head of Financial Crime Compliance, lacks sufficient decision-making authority to be held personally accountable for the company’s activities. Similarly, Anjarwalla, who served as the Director of Operations in Africa, is also contesting the charges.

Broader Investigation and Ongoing Legal Battles

The arrests of Gambaryan and Anjarwalla are part of a wider scrutiny into Binance’s operations within Nigeria. Anjarwalla briefly escaped custody after his initial detention, which led to an international arrest warrant being issued via Interpol. This added another layer of complexity to the ongoing investigation. The next hearing for the money laundering case is set for June 19, focusing on whether the executives’ fundamental rights are being upheld. The trial is expected to proceed on June 20, with Gambaryan remaining in custody at Kuje prison until further legal actions are determined.

Conclusion

Though the dropping of tax charges offers some respite for the Binance executives, the shadow of the ongoing money laundering investigation looms large. Binance continues to argue for the innocence and responsibility of its executives, who face considerable legal challenges ahead. The coming months will be crucial in determining the outcome of these serious allegations and their impact on Binance’s operations in Nigeria.