Nigeria drops Tax charges against Binance executives, but Gambaryan remains detained

Binance

FIRS has dropped tax evasion charges against Binance. The Nigeria's tax authority, the Federal Inland Revenue Service (FIRS), has dropped tax evasion charges against two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla. This comes after sixteen US lawmakers accused Nigeria of unfairly detaining Gambaryan.

Previously, in March 2024, FIRs accused Binance of not paying taxes on billions of naira worth of cryptocurrency transactions. They charged both Gambaryan and Anjarwalla with tax evasion.

Prior to the continual detention of Tigran Gambaryan by Nigeria's authority, Sixteen US lawmakers sent a letter to President Biden on June 4th, claiming Gambaryan, a US citizen, was being held hostage to pressure Binance.

Focus Shifts to Binance: Just a week later, Nigeria dropped the tax charges against the executives, making Binance the sole defendant. Binance maintains Gambaryan wasn't a decision-maker and his detention wasn't necessary.

However, the Money Laundering Charges Remain: Despite the dropped tax charges, Gambaryan remains in custody. Nigeria's anti-graft agency, EFCC, had previously arrested him on money laundering charges, separate from the tax case. A court ruling on those charges is still pending.

Health Concerns: Gambaryan's lawyers report he has been diagnosed with malaria and pneumonia while in detention.

In Summary, Nigeria has shifted its focus from individual executives to Binance itself regarding tax issues. However, Gambaryan remains detained on separate money laundering charges.

This situation highlights the ongoing tension between governments and cryptocurrency exchanges, and the complexities of international business operations.

Lastly, it worth noting that Gambrayan has been detained for 110 days, while Anjarwalla escaped detention on March 22.

About the author

Temmy Samuel
He is an aspiring accountant with a strong foundation in financial analysis, auditing, and tax accounting. Currently pursuing a degree in Accounting at Federal University Oye-Ekiti, he's excelled in key subjects such as financial reporting, cost…

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