A Nigerian court has slated October 11 for the verdict in the tax evasion case against cryptocurrency exchange Binance. Presiding judge Emeka Nwite announced the schedule on Friday.
Binance Faces Multiple Tax Evasion Charges
Binance is contending with four counts of tax evasion, including the failure to register with Nigeria’s Federal Inland Revenue Service (FIRS). During Friday’s proceedings, Binance’s lawyer, Ayodele Omotilewa, entered a not-guilty plea on behalf of the company and urged Judge Nwite to dismiss all charges, arguing the case lacks merit.
Previous Legal Developments
In June, the Federal High Court in Abuja cleared Binance executives Tigran Gambaryan and Nadeem Anjarwalla of similar tax evasion charges. However, both still face separate money laundering allegations, which they deny. The dismissal came after the FIRS submitted amended charges dropping the tax evasion allegations against the two executives.
Court Adjourns Until October
Judge Nwite has adjourned the case to October, allowing more time for both the defense and prosecution to prepare their cases and for further deliberation on the evidence. Binance has not provided an immediate comment but has previously stated that the charges should be dismissed.
Nigerian Government’s Economic Concerns
The Nigerian government has partially attributed its economic issues to Binance, particularly during severe dollar shortages that led to the naira hitting record lows. On February 20, Binance’s Nigerian users faced difficulties trading Tether (USDT) for naira on its peer-to-peer platform, prompting Binance to restrict USDT purchases with naira and set a peg at 1,802 naira to the US dollar to prevent fraud.
Regulatory Crackdown and Market Exit
Following these issues, Nigerian authorities blocked access to major crypto exchanges, including Binance, due to concerns over currency manipulation and money laundering. This led to the detention of Binance officials Nadeem Anjarwalla and Tigran Gambaryan in Abuja amid an ongoing investigation by the Office of the National Security Adviser.
By March 5, Binance announced its exit from the Nigerian market, halting all services involving the naira. Users were given a three-day window to withdraw or convert their naira balances to USDT. This action aligns with the National Security Adviser’s stance that cryptocurrency trading poses a national security risk.
The Central Bank of Nigeria (CBN) has instructed fintech companies to identify and report accounts involved in cryptocurrency transactions and take steps to prevent further activity. In court on July 6, the CBN’s payment policy and regulation chief argued that only banks and authorized financial institutions should process deposit and withdrawal transactions for Binance as part of the ongoing case.
As the October verdict date approaches, the legal and economic implications of this high-profile case continue to unfold, underscoring the complex relationship between cryptocurrency platforms and regulatory bodies in Nigeria.
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