The Federal High Court has absolved Tigran Gambaryan, a 39-year-old American, and Nadeem Anjarwalla from the FIRS tax evasion case involving Binance, a cryptocurrency exchange platform.
In a concise ruling, the court decided to discharge Gambaryan and Anjarwalla following amended charges by FIRS, prompted by Binance’s appointment of Nigerian representative Ayodele Omotilewa.
Initially, FIRS had filed legal action on March 22, 2024, alleging tax evasion by Binance and Gambaryan. On May 17, 2024, FIRS updated the charges, accusing Binance of failing to remit VAT and CIT as required by law.
Idris Mohammed, Minister of Information, highlighted Binance’s significant turnover of over $20 billion in Nigeria in 2023.
Justice Emeka Nwite adjourned the case to June 14, 2024, for Binance and Gambaryan’s arraignment after a mutual agreement between legal teams.
During the recent proceedings, Binance’s counsel, Tonye Krukrubo SAN, informed the court of Binance’s official representative, which FIRS acknowledged. They sought court permission to substitute previous charges with new ones dated June 13, 2024.
The fresh charges now list Binance as the sole defendant, signalling Gambaryan and Anjarwalla’s dissociation from the case.
The charges allege that Binance facilitated cryptocurrency transactions in Nigeria without deducting necessary VAT, constituting an offence under the Companies Income Tax Act.
Moses Idehu, representing FIRS, requested that Binance’s Nigerian representative enter the dock for plea. However, Krukrubo and Gambaryan’s legal team argued against mandating a company representative to appear in court.
Consequently, Justice Nwite ruled to strike out charges from March 22 and May 17, 2024, and removed Gambaryan and Anjarwalla’s names from the case, scheduling the plea for July 12.
The judge instructed both parties to submit written addresses regarding whether Binance’s representative should appear in court.
Meanwhile, Gambaryan and Anjarwalla remain defendants in a separate case by the EFCC concerning alleged financial crimes.
Background:
The Federal Government accused Binance of impacting FX rates, leading to stricter regulation of crypto platforms. The EFCC separately pursued Binance and its executives for money laundering and FX violations.
In February 2024, Nigerian authorities detained Nadeem Anjarwalla and Tigran Gambaryan, later releasing Anjarwalla, who subsequently fled.
The government’s ban on crypto activities exacerbated currency devaluation, worsened by local dollar shortages, SEC criticized Binance’s Naira P2P feature for destabilizing exchange rates.
Binance spokesperson Ivy Shirinda expressed disappointment over Gambaryan’s detention, emphasizing his lack of decision-making power and the meritless charges against him.
