Nigerian authorities have formally charged the global crypto exchange, Binance, and its detained executives, Nadeem Anjarwalla and Tigran Gambarya, with tax evasion. This news comes as a heavy blow to the crypto giant and its users.
The government alleges that Binance failed to register with the Federal Inland Revenue Service (FIRS), Nigeria’s tax collection agency, for tax purposes, an offense punishable under Section 8 of the Value Added Tax Act of 1993. The charges, confirmed by the FIRS and reported by Bloomberg, include non-payment of value-added tax and company tax, failure to file tax returns, and aiding customers to evade taxes through its platform.
In a dramatic twist, Anjarwalla, a UK citizen, reportedly escaped from the Abuja guest house where he and Gambaryan were detained. The office of Nigeria’s National Security Adviser (NSA) confirmed that Anjarwalla fled Nigeria using a smuggled passport and is believed to have left the country using a Middle East airliner. The NSA stated, “Security agencies are working with Interpol for an international arrest warrant for the suspect.”
Binance’s troubles in Nigeria are linked to the government’s efforts to curb forex trading speculation, following volatility in the price of the naira. Last week, it was reported that Nigeria’s central bank analyzed peer-to-peer trading on Binance, confirming suspicions of price manipulation by some traders.
In response to these allegations, Binance, which has disabled naira services on its platform, pledged to comply with authorities. The company stated that since 2020, it has responded to over 626 information requests that have assisted the government’s investigations into financial crimes such as scams, fraud, and money laundering.
As we continue to follow this developing story, the crypto community watches with bated breath, awaiting the outcome of this unprecedented situation.
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