Key Insights
- Binance is scheduled to face tax evasion charges in a Nigerian court on October 11, with the company pleading not guilty to allegations including failure to register with tax authorities.
- Nigerian officials link Binance and other crypto platforms to the country’s currency challenges, citing exacerbation of dollar shortages and economic issues.
ABUJA (MarketsXplora) – Cryptocurrency exchange Binance is set to face tax evasion charges in a Nigerian court on October 11, marking a significant escalation in the company’s ongoing legal battle with African authorities, a court official said on Thursday.
The charges, which include failing to register with Nigeria’s Federal Inland Revenue Service for tax purposes, were met with a not guilty plea from Binance’s representative, Ayodele Omotilewa, before Judge Emeka Nwite.
This development comes as Binance grapples with multiple legal challenges in Nigeria, including separate money laundering allegations against two of its executives, which they deny.
Nigerian authorities have linked the country’s currency woes to cryptocurrency trading platforms like Binance, blaming them for exacerbating dollar shortages as the naira hit record lows.
“The popularity of these platforms has contributed to our economic challenges,” a senior Nigerian financial regulator told Reuters, speaking on condition of anonymity.
Binance has moved to dismiss the charges but has yet to comment officially on the recent court proceedings.
In a parallel development, Nigeria recently dismissed a fundamental rights enforcement case filed by Binance executive Nadeem Anjarwalla, following his escape from custody to Kenya. Anjarwalla and colleague Tigran Gambaryan had initially sued for their release from detention by Nigeria’s National Security Adviser (NSA) and the Economic and Financial Crimes Commission (EFCC).
The case’s dismissal came after Anjarwalla’s legal representative withdrew his appearance and subsequently failed to show up for a rescheduled hearing.
Meanwhile, two U.S. congressmen have intensified efforts to secure Gambaryan’s release from Nigerian custody, highlighting the international dimensions of the case.
Binance’s legal troubles in Nigeria deepened further following a blog post by CEO Richard Teng, alleging coercive demands for a secret payment to resolve issues within the country. Nigerian authorities dismissed these claims as diversionary tactics.
“We categorically reject these allegations,” a spokesperson for Nigeria’s economic crimes agency said. “They are merely an attempt to distract from the serious charges Binance faces.”