Nigeria has taken legal action against the cryptocurrency exchange platform Binance, with tax evasion allegations culminating in four charges filed by Nigeria's Federal Inland Revenue Service (FIRS) in Abuja. The FIRS is accusing Binance, known as the world's largest cryptocurrency exchange, of failing to pay value-added tax (VAT), company income tax, not submitting tax returns, and aiding customers in evading taxes through the platform. As a response to these charges, Binance did not immediately provide a statement on the tax evasion accusations.
The situation unfolds when the British-Kenyan regional manager for Africa, Nadeem Anjarwalla, was detained in connection with the criminal investigation into Binance's activities in Nigeria. Anjarwalla, alongside Tigran Gambaryan, the US citizen and Binance's head of financial crime compliance, traveled to Nigeria after the government announced the ban on multiple cryptocurrency trading websites. However, upon their arrival on February 26, both officials were detained, leading to a legal saga that saw their detention order expiring on March 12.
The plot thickened as Anjarwalla managed to leave Nigeria on March 23, allegedly through lawful means, after being in unlawful custody. A representative for the detained Binance executives highlighted that neither Anjarwalla nor Gambaryan had faced trial by Nigerian courts nor received information about any charges against them. Furthermore, sources familiar with the matter revealed that Nigerian authorities had sought an extension in detaining the two Binance executives after the original warrant expired, pushing the situation into a more complex legal realm.
Amid these legal battles, Binance declared its awareness of Anjarwalla's departure from Nigerian custody and affirmed its cooperation with authorities to address the unfolding circumstances. The company had previously announced a halt to transactions and trading in Nigeria's local currency as part of a broader crackdown on cryptocurrency exchanges, which authorities claimed were fueling a demand for US dollars on the black market. Consequently, Binance opted to cease supporting withdrawals in Nigerian naira, with remaining balances set to convert automatically into Tether, a stablecoin pegged to the US dollar.