Related stories: President Tinubu signs law classifying crypto as securities
Showing posts with label Cryptocurrency. Show all posts
Showing posts with label Cryptocurrency. Show all posts
Wednesday, April 9, 2025
Tuesday, April 8, 2025
Binance vs Nigeria: Court Postpones $81.5 Billion Binance Tax Case Until April 30
A Nigerian court has postponed the tax evasion case against cryptocurrency exchange Binance until April 30, 2025. The delay will give Nigeria’s Federal Inland Revenue Service (FIRS) time to respond to Binance’s request to invalidate a court order allowing documents to be served via email.
The case involves claims that Binance owes $2 billion in back taxes plus an additional $79.5 billion that Nigeria says is due for economic damages. Nigerian authorities allege the exchange’s operations destabilized the country’s currency, the naira.
Binance’s lawyer, Chukwuka Ikwuazom, challenged the email service order in court on April 7. He argued the tax authority failed to get proper permission to serve court documents to Binance outside Nigeria, noting the company is registered in the Cayman Islands and has no physical office in Nigeria.
Tax Claims Against Crypto Exchange
The FIRS filed the lawsuit in February 2025, claiming Binance maintains a “significant economic presence” in Nigeria. This presence, according to tax authorities, makes the company liable for corporate income taxes for 2022 and 2023.
Nigeria is asking the court to order Binance to pay these taxes plus a 10% annual penalty on unpaid amounts. The tax authority is also seeking nearly 27% interest on the unpaid taxes.
The economic damages claim of $79.5 billion stems from allegations that Binance’s operations hurt the value of the naira. Binance has denied these claims about destabilizing the Nigerian currency.
Binance effectively exited the Nigerian market in March 2024 by stopping naira deposits and withdrawals on its platform. This move came amid mounting pressure from Nigerian authorities.
The case involves claims that Binance owes $2 billion in back taxes plus an additional $79.5 billion that Nigeria says is due for economic damages. Nigerian authorities allege the exchange’s operations destabilized the country’s currency, the naira.
Binance’s lawyer, Chukwuka Ikwuazom, challenged the email service order in court on April 7. He argued the tax authority failed to get proper permission to serve court documents to Binance outside Nigeria, noting the company is registered in the Cayman Islands and has no physical office in Nigeria.
Tax Claims Against Crypto Exchange
The FIRS filed the lawsuit in February 2025, claiming Binance maintains a “significant economic presence” in Nigeria. This presence, according to tax authorities, makes the company liable for corporate income taxes for 2022 and 2023.
Nigeria is asking the court to order Binance to pay these taxes plus a 10% annual penalty on unpaid amounts. The tax authority is also seeking nearly 27% interest on the unpaid taxes.
The economic damages claim of $79.5 billion stems from allegations that Binance’s operations hurt the value of the naira. Binance has denied these claims about destabilizing the Nigerian currency.
Binance effectively exited the Nigerian market in March 2024 by stopping naira deposits and withdrawals on its platform. This move came amid mounting pressure from Nigerian authorities.
Previous Detentions and Escapes
The current tax case follows earlier legal troubles for Binance in Nigeria. In February 2024, Nigerian authorities arrested and detained two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, on tax fraud and money laundering charges.
Nigeria later dropped the tax charges against both executives in June 2024. The remaining charge against Gambaryan was dropped in October.
Anjarwalla escaped Nigerian custody in March 2024, reportedly slipping away from guards and fleeing to Kenya. He remains at large, according to reports.
Gambaryan, a US citizen, was released and returned home in October 2024. Reports indicated his health had worsened during detention, with cases of pneumonia, malaria, and a herniated spinal disc requiring possible surgery.
Binance has stated it is working with Nigeria’s Federal Inland Revenue Service to resolve potential historic tax liabilities. However, the company had not immediately responded to requests for comment on the latest court developments at the time of reporting.
The case highlights ongoing tensions between cryptocurrency platforms and national regulators as countries work to establish frameworks for taxing and regulating digital asset businesses operating within their borders.
The next court date of April 30 will determine whether Binance’s challenge to the service order will be accepted or if the case will proceed under the current terms.
The current tax case follows earlier legal troubles for Binance in Nigeria. In February 2024, Nigerian authorities arrested and detained two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, on tax fraud and money laundering charges.
Nigeria later dropped the tax charges against both executives in June 2024. The remaining charge against Gambaryan was dropped in October.
Anjarwalla escaped Nigerian custody in March 2024, reportedly slipping away from guards and fleeing to Kenya. He remains at large, according to reports.
Gambaryan, a US citizen, was released and returned home in October 2024. Reports indicated his health had worsened during detention, with cases of pneumonia, malaria, and a herniated spinal disc requiring possible surgery.
Binance has stated it is working with Nigeria’s Federal Inland Revenue Service to resolve potential historic tax liabilities. However, the company had not immediately responded to requests for comment on the latest court developments at the time of reporting.
The case highlights ongoing tensions between cryptocurrency platforms and national regulators as countries work to establish frameworks for taxing and regulating digital asset businesses operating within their borders.
The next court date of April 30 will determine whether Binance’s challenge to the service order will be accepted or if the case will proceed under the current terms.
By Oliver Dale, COIN CENTRAL
Thursday, April 3, 2025
President Tinubu signs law classifying crypto as securities
Nigeria’s President Bola Tinubu has signed a new law strengthening SEC oversight of cryptocurrencies and classifying them as securities.
Nigeria‘s President Bola Ahmed Tinubu has signed the Investments and Securities Act 2024 into law, classifying cryptocurrencies as securities under the regulatory authority of the Nigerian Securities and Exchange Commission, local news outlets report.
The new law replaces the ISA 2007 Act and reportedly expands the SEC’s role in overseeing Nigeri’s capital markets, including crypto exchanges. The act also enforces tougher penalties for Ponzi schemes, which are commonly linked to the crypto market.
For example, those convicted of running Ponzi schemes could face a prison sentence of 10 years or more, along with a minimum fine of N10 million (about $6,500). The total financial penalties could go up to N40 million (around $26,000), depending on how serious the offense is.
Nigeria’s tech-savvy population has turned to cryptocurrencies as a way to protect against high inflation and the sharp decline of the naira against the dollar since mid-2023. According to data from Chainalysis, the country received approximately $59 billion in cryptocurrency value between July 2023 and June 2024.
Since taking office in 2023, President Bola Tinubu has focused on fiscal reforms aimed at boosting government revenue and reducing the budget deficit, including revamping tax administration. The push for regulation brings Nigeria in line with other regions like the European Union with its Markets in Crypto-Assets, all of which have moved to regulate cryptocurrencies.
By Denis Omelchenko, Crypto News
Nigeria‘s President Bola Ahmed Tinubu has signed the Investments and Securities Act 2024 into law, classifying cryptocurrencies as securities under the regulatory authority of the Nigerian Securities and Exchange Commission, local news outlets report.
The new law replaces the ISA 2007 Act and reportedly expands the SEC’s role in overseeing Nigeri’s capital markets, including crypto exchanges. The act also enforces tougher penalties for Ponzi schemes, which are commonly linked to the crypto market.
For example, those convicted of running Ponzi schemes could face a prison sentence of 10 years or more, along with a minimum fine of N10 million (about $6,500). The total financial penalties could go up to N40 million (around $26,000), depending on how serious the offense is.
Nigeria’s tech-savvy population has turned to cryptocurrencies as a way to protect against high inflation and the sharp decline of the naira against the dollar since mid-2023. According to data from Chainalysis, the country received approximately $59 billion in cryptocurrency value between July 2023 and June 2024.
Since taking office in 2023, President Bola Tinubu has focused on fiscal reforms aimed at boosting government revenue and reducing the budget deficit, including revamping tax administration. The push for regulation brings Nigeria in line with other regions like the European Union with its Markets in Crypto-Assets, all of which have moved to regulate cryptocurrencies.
Wednesday, April 2, 2025
Freed Binance exec Tigran Gambaryan says he ‘almost died twice’ in Nigeria
“It was supposed to be a two-day trip.”
It wasn’t.
On Tuesday, Tigran Gambaryan, a onetime federal agent and the head of Binance’s financial crimes unit, shared an account of his eight-month ordeal in Nigeria’s legal system.
Locked up on charges he engaged in money laundering, Gambaryan suffered from malaria, pneumonia, and a herniated disc in his back. At one point he was so ill he collapsed in a courtroom in Abuja, the African nation’s capital.
“I almost died twice,” he told his audience at Chainalysis’ Links 2025 conference in New York.
It wasn’t.
On Tuesday, Tigran Gambaryan, a onetime federal agent and the head of Binance’s financial crimes unit, shared an account of his eight-month ordeal in Nigeria’s legal system.
Locked up on charges he engaged in money laundering, Gambaryan suffered from malaria, pneumonia, and a herniated disc in his back. At one point he was so ill he collapsed in a courtroom in Abuja, the African nation’s capital.
“I almost died twice,” he told his audience at Chainalysis’ Links 2025 conference in New York.
Humour and stoicism
Now, almost six months after his release, Gambaryan recounted the Kafkaesque nightmare with a mix of humour and stoicism.
Just two days after arriving in Abuja last February to talk to Nigerian officials about allegations Binance was operating in the nation illegally, Gambaryan and his colleague, Nadeem Anjarwalla, were detained in a government “guest house.”
There was barbed wire all around the residence, except at the five-foot fence in the front, which led onto a city street.
“It was kind of a ridiculous situation,” he said. “It would have been as easy as just hopping a fence and getting an Uber.
“They had military guards that were stationed at the front of the gate, but they were always asleep,” he continued to laughs from the audience.
As it happened, Anjarwalla didn’t stay long.
‘I thought he was just having another panic attack.’— Tigran Gambaryan, Binance
On March 22, 2024, Anjarwalla, a British lawyer who was Binance’s regional manager based in Nairobi, asked his guards to allow him to attend a prayer service at a mosque in observance of Ramadan.
In Gambaryan’s telling, Anjarwalla returned from the mosque and said he’d go upstairs to sleep.
Now, almost six months after his release, Gambaryan recounted the Kafkaesque nightmare with a mix of humour and stoicism.
Just two days after arriving in Abuja last February to talk to Nigerian officials about allegations Binance was operating in the nation illegally, Gambaryan and his colleague, Nadeem Anjarwalla, were detained in a government “guest house.”
There was barbed wire all around the residence, except at the five-foot fence in the front, which led onto a city street.
“It was kind of a ridiculous situation,” he said. “It would have been as easy as just hopping a fence and getting an Uber.
“They had military guards that were stationed at the front of the gate, but they were always asleep,” he continued to laughs from the audience.
As it happened, Anjarwalla didn’t stay long.
‘I thought he was just having another panic attack.’— Tigran Gambaryan, Binance
On March 22, 2024, Anjarwalla, a British lawyer who was Binance’s regional manager based in Nairobi, asked his guards to allow him to attend a prayer service at a mosque in observance of Ramadan.
In Gambaryan’s telling, Anjarwalla returned from the mosque and said he’d go upstairs to sleep.
Dark house
Gambaryan spent the day on the phone with US officials. At night, he decided to check on his colleague.
The house was dark, Gambaryan recalled, because the staff were embezzling money meant to pay for the electricity.
In Anjarwalla’s upstairs bedroom, Gambaryan found one of his colleague’s feet poking out from under the bedsheets.
“He had a panic attack earlier in the month, so I thought he was just having another panic attack, and that’s why he had the blankets over him,” Gambaryan said.
He tugged on the blanket, only to find pillows and a water bottle stuffed in Anjarwalla’s sock. His colleague had made a dummy of himself.
While Anjarwalla had surrendered his Kenyan passport, he apparently kept his British passport hidden from Nigerian authorities. This is what he used to make his getaway. He made his way to the airport, where he boarded a flight for Kenya before the cops could catch up with him.
“I would have appreciated a heads up,” Gambaryan joked.
While Nigeria arranged an interpol Red Notice for Anjarwalla — which is still in effect — Gambaryan was left to bear the brunt of Nigerian authorities’ wrath.
Gambaryan spent the day on the phone with US officials. At night, he decided to check on his colleague.
The house was dark, Gambaryan recalled, because the staff were embezzling money meant to pay for the electricity.
In Anjarwalla’s upstairs bedroom, Gambaryan found one of his colleague’s feet poking out from under the bedsheets.
“He had a panic attack earlier in the month, so I thought he was just having another panic attack, and that’s why he had the blankets over him,” Gambaryan said.
He tugged on the blanket, only to find pillows and a water bottle stuffed in Anjarwalla’s sock. His colleague had made a dummy of himself.
While Anjarwalla had surrendered his Kenyan passport, he apparently kept his British passport hidden from Nigerian authorities. This is what he used to make his getaway. He made his way to the airport, where he boarded a flight for Kenya before the cops could catch up with him.
“I would have appreciated a heads up,” Gambaryan joked.
While Nigeria arranged an interpol Red Notice for Anjarwalla — which is still in effect — Gambaryan was left to bear the brunt of Nigerian authorities’ wrath.
A pawn
From the outset, it seemed clear that Gambaryan was a pawn in a larger conflict between Binance and the Nigerian central bank, as well as authorities in the nation’s anti-corruption and economic ministries.
They blamed the world’s largest crypto exchange for destabilising its fiat currency, the naira, which lost more than 90% of its value in early 2024.
‘Anybody who knows me or my prior job knows how ridiculous that is.’— Tigran Gambaryan, Binance
Last week, Alhaji Mohammed Idris, the government’s Minister of Information, told DL News that investigators had also found evidence Binance was laundering illicit crypto transactions for terrorists and kidnappers.
“We stumbled on evidence linking the operations of Binance and these criminal elements ― terrorists and their like,” the minister said in an exclusive interview.
In his talk, Gambaryan, 40, described how he used to be an agent with the Internal Revenue Service and then put his skills to use at Binance by helping foreign governments contend with crypto fraud.
To be charged with being complicit in the very crimes he’d spent his career exposing was shocking, he said.
“Anybody who knows me or my prior job knows how ridiculous that is,” he said, “or where my residence is — I never earned any money in Nigeria.”
Charged in connection with an alleged $35 million money laundering scheme, Gambaryan was transferred to Kuje Prison, a facility that also housed terrorists and violent convicts. He was jailed in an underground cell.
“Imagine the worst place possible,” Gambaryan said. “No running water, no air conditioning, no showers.”
From the outset, it seemed clear that Gambaryan was a pawn in a larger conflict between Binance and the Nigerian central bank, as well as authorities in the nation’s anti-corruption and economic ministries.
They blamed the world’s largest crypto exchange for destabilising its fiat currency, the naira, which lost more than 90% of its value in early 2024.
‘Anybody who knows me or my prior job knows how ridiculous that is.’— Tigran Gambaryan, Binance
Last week, Alhaji Mohammed Idris, the government’s Minister of Information, told DL News that investigators had also found evidence Binance was laundering illicit crypto transactions for terrorists and kidnappers.
“We stumbled on evidence linking the operations of Binance and these criminal elements ― terrorists and their like,” the minister said in an exclusive interview.
In his talk, Gambaryan, 40, described how he used to be an agent with the Internal Revenue Service and then put his skills to use at Binance by helping foreign governments contend with crypto fraud.
To be charged with being complicit in the very crimes he’d spent his career exposing was shocking, he said.
“Anybody who knows me or my prior job knows how ridiculous that is,” he said, “or where my residence is — I never earned any money in Nigeria.”
Charged in connection with an alleged $35 million money laundering scheme, Gambaryan was transferred to Kuje Prison, a facility that also housed terrorists and violent convicts. He was jailed in an underground cell.
“Imagine the worst place possible,” Gambaryan said. “No running water, no air conditioning, no showers.”
US lawmakers visit
He contracted malaria and developed double pneumonia. He spent so much time laid out on a metal bed frame, he developed debilitating back pain.
After appearing in court in a wheelchair, Nigerian authorities instructed guards to make sure he made his next appearance on his own two feet.
He said authorities barred his lawyers from helping him get to the courtroom.
“If you watch the video, I try to reach out to one of the guards,” Gambaryan recounted. “He pulled his arm away because they were instructed not to help me out.”
“By them trying to make it seem like I’m doing okay, they actually made the situation worse.”
After media accounts reported on Gambaryan’s alarming condition — DL News broke the news of Gambaryan’s and Anjarwalla’s detainment and covered the case in detail — US lawmakers took notice.
In June, two members of Congress visited Gambaryan in prison and were dismayed by his deteriorating health.
He contracted malaria and developed double pneumonia. He spent so much time laid out on a metal bed frame, he developed debilitating back pain.
After appearing in court in a wheelchair, Nigerian authorities instructed guards to make sure he made his next appearance on his own two feet.
He said authorities barred his lawyers from helping him get to the courtroom.
“If you watch the video, I try to reach out to one of the guards,” Gambaryan recounted. “He pulled his arm away because they were instructed not to help me out.”
“By them trying to make it seem like I’m doing okay, they actually made the situation worse.”
After media accounts reported on Gambaryan’s alarming condition — DL News broke the news of Gambaryan’s and Anjarwalla’s detainment and covered the case in detail — US lawmakers took notice.
In June, two members of Congress visited Gambaryan in prison and were dismayed by his deteriorating health.
Pressed for action
That same month, Yuki Gambaryan, Tigran’s wife, told DL News that she had expected more from Washington.
“I am shocked at how long it took for us to get to this point,” she told DL News in an exclusive video interview.
“It feels like the US government just got to the starting line now, which should have happened a long time ago.”
By September, the Biden administration had begun leaning on Abuja to release Gambaryan. Linda Thomas-Greenfield, then the US ambassador to the United Nations, buttonholed a senior Nigerian official that month in New York and pressed him for action.
The next month, Nigerian prosecutors dropped the charges and released Gambaryan. He was on a plane home that night.
Asked to reflect on the implications of his ordeal, Gambaryan said Tuesday that Nigeria had turned down a potential revenue source — its growing crypto industry — for a scored-earth campaign that had diminished the country in foreign investors’ eyes.
That same month, Yuki Gambaryan, Tigran’s wife, told DL News that she had expected more from Washington.
“I am shocked at how long it took for us to get to this point,” she told DL News in an exclusive video interview.
“It feels like the US government just got to the starting line now, which should have happened a long time ago.”
By September, the Biden administration had begun leaning on Abuja to release Gambaryan. Linda Thomas-Greenfield, then the US ambassador to the United Nations, buttonholed a senior Nigerian official that month in New York and pressed him for action.
The next month, Nigerian prosecutors dropped the charges and released Gambaryan. He was on a plane home that night.
Asked to reflect on the implications of his ordeal, Gambaryan said Tuesday that Nigeria had turned down a potential revenue source — its growing crypto industry — for a scored-earth campaign that had diminished the country in foreign investors’ eyes.
$81 billion bill
Indeed, Nigeria, Africa’s most populous nation, was once a vibrant crypto market. Now stablecoin use has plunged 38% in the last year as the government cracks down on the industry.
“They’re stuck with it now. It’s almost like they have to continue with this,” Gambaryan said.
“Nobody’s gonna go back and do any business there. The last time they gave guarantees, look what happened.”
As for Binance, it is still confronting three separate legal actions in Nigeria, including the tax ministry’s demand it pay a staggering $81 billion penaltyl for lost economic activity.
The exchange has pleaded not guilty in the matters as trials loom.
Indeed, Nigeria, Africa’s most populous nation, was once a vibrant crypto market. Now stablecoin use has plunged 38% in the last year as the government cracks down on the industry.
“They’re stuck with it now. It’s almost like they have to continue with this,” Gambaryan said.
“Nobody’s gonna go back and do any business there. The last time they gave guarantees, look what happened.”
As for Binance, it is still confronting three separate legal actions in Nigeria, including the tax ministry’s demand it pay a staggering $81 billion penaltyl for lost economic activity.
The exchange has pleaded not guilty in the matters as trials loom.
Monday, March 31, 2025
Nigeria Alleges Binance Facilitated Terrorism, Kidnapping Funding
Prior to the Nigerian government’s crackdown on Binance, kidnapping gangs and terrorists funneled illicit funds through the cryptocurrency exchange, Information Minister Alhaji Mohammed Idris recently stated. Idris said this situation left the Nigerian government with no option but to take action against Binance.
The minister’s comments came days after he rejected assertions the Nigerian government was extorting the cryptocurrency exchange. In remarks published by Semafor, Idris also denied claims the government holds Binance responsible for the depreciation of the local currency. However, Idris is quoted in the Semafor report as saying Binance contributed to the naira’s decline.
Consequently, the Nigerian government instituted several measures targeting Binance, including filing an $81 billion lawsuit against the exchange. Money laundering and tax evasion charges have also been filed against Binance.
When the Nigerian government initially took action against Binance, it also detained Tigran Gambaryan, the crypto exchange’s security head. Gambaryan’s prolonged detention prompted allegations the Nigerian government was using it to force Binance to pay a $150 million bribe. After spending several months in detention, Gambaryan was eventually released on health grounds, ending a dispute that threatened U.S.-Nigeria relations.
However, after Gambaryan repeated the bribery claims during an interview with a U.S. publication, the Nigerian government accused the Binance employee of lying. A few days later, Binance was served with the billion-dollar lawsuit. The latest allegation, linking Binance to terrorism and kidnapping, adds to its growing legal woes in a country with Africa’s largest crypto market.
In building the Nigerian government’s case that Binance was used by terrorists and kidnappers, Idris said:
“If you see a flow of finance between somebody who is purportedly doing financial transactions in your land and then people who are engaged in acts of destabilization, certainly this will be of interest.”
The minister’s comments came days after he rejected assertions the Nigerian government was extorting the cryptocurrency exchange. In remarks published by Semafor, Idris also denied claims the government holds Binance responsible for the depreciation of the local currency. However, Idris is quoted in the Semafor report as saying Binance contributed to the naira’s decline.
Consequently, the Nigerian government instituted several measures targeting Binance, including filing an $81 billion lawsuit against the exchange. Money laundering and tax evasion charges have also been filed against Binance.
When the Nigerian government initially took action against Binance, it also detained Tigran Gambaryan, the crypto exchange’s security head. Gambaryan’s prolonged detention prompted allegations the Nigerian government was using it to force Binance to pay a $150 million bribe. After spending several months in detention, Gambaryan was eventually released on health grounds, ending a dispute that threatened U.S.-Nigeria relations.
However, after Gambaryan repeated the bribery claims during an interview with a U.S. publication, the Nigerian government accused the Binance employee of lying. A few days later, Binance was served with the billion-dollar lawsuit. The latest allegation, linking Binance to terrorism and kidnapping, adds to its growing legal woes in a country with Africa’s largest crypto market.
In building the Nigerian government’s case that Binance was used by terrorists and kidnappers, Idris said:
“If you see a flow of finance between somebody who is purportedly doing financial transactions in your land and then people who are engaged in acts of destabilization, certainly this will be of interest.”
Friday, March 28, 2025
Nigeria Continues Search for Escaped Binance Exec Nadeem Anjarwalla
The battle between Binance and Nigeria isn't over yet. In what Nigeria Information Minister Mohammed Idris emphasised was a Binance problem rather than a crypto problem, the African nation is continuing its pursuit of British Kenyan Nadeem Anjarwalla.
Anjarwalla and U.S. citizen Tigran Gambaryan, both Binance executives, were detained in Nigeria in February 2024. The pair visited the country to address allegations that the exchange's activity had crashed the country's national currency, the naira.
Nigeria's Economic and Financial Crime Commission (EFCC) charged the exchange and its two executives with five counts bordering on money laundering.
Anjarwalla, who serves as Binance's regional manager for Africa, escaped custody in March, with Binance stating, “We were made aware that Nadeem is no longer in Nigerian custody. Our primary focus remains on the safety of our employees and we are working collaboratively with Nigerian authorities to quickly resolve this issue.”
In a recent interview, Idris said the government in Abuja, as well as Interpol, are searching for Anjarwalla. “Nadeem Anjarwalla actually did escape lawful custody, and this is against our laws,” Alhaji Idris said.
“Nigeria made a case with Interpol to apprehend him and bring him back to face justice.”
Gambarayan ultimately had his case dropped by the Nigerian court on humanitarian grounds due to his deteiorating health after being detained for eight months.
The Binance exec reportedly had suffered from malaria, pneumonia, and tonsilitis, and also experienced complications from a herniated disk, which left him wheelchair-bound. Local authorities said Gambaryan required urgent medical care outside Nigeria.
Binance CEO Richard Teng defended the exchange, stating that the Nigerian government’s actions “were not warranted” and that Binance had attempted to cooperate, only to be met with resistance.
Minister Idris dismissed these accusations as tactics aimed at strong-arming the government, pointing out that other crypto firms operating in Nigeria had not faced similar legal challenges. “There are other companies operating in the crypto sector in Nigeria, you don’t see them [facing charges],” he said, adding that the government is out to protect investors, “not to cripple anybody.”
Last month, Nigeria sued Binance for $79.5 billion in damages for economic losses allegedly caused by the cryptocurrency exchange’s operations in the country. Additionally, the government demanded $2 billion in back taxes.
Anjarwalla and U.S. citizen Tigran Gambaryan, both Binance executives, were detained in Nigeria in February 2024. The pair visited the country to address allegations that the exchange's activity had crashed the country's national currency, the naira.
Nigeria's Economic and Financial Crime Commission (EFCC) charged the exchange and its two executives with five counts bordering on money laundering.
Anjarwalla, who serves as Binance's regional manager for Africa, escaped custody in March, with Binance stating, “We were made aware that Nadeem is no longer in Nigerian custody. Our primary focus remains on the safety of our employees and we are working collaboratively with Nigerian authorities to quickly resolve this issue.”
In a recent interview, Idris said the government in Abuja, as well as Interpol, are searching for Anjarwalla. “Nadeem Anjarwalla actually did escape lawful custody, and this is against our laws,” Alhaji Idris said.
“Nigeria made a case with Interpol to apprehend him and bring him back to face justice.”
Gambarayan ultimately had his case dropped by the Nigerian court on humanitarian grounds due to his deteiorating health after being detained for eight months.
The Binance exec reportedly had suffered from malaria, pneumonia, and tonsilitis, and also experienced complications from a herniated disk, which left him wheelchair-bound. Local authorities said Gambaryan required urgent medical care outside Nigeria.
Binance CEO Richard Teng defended the exchange, stating that the Nigerian government’s actions “were not warranted” and that Binance had attempted to cooperate, only to be met with resistance.
Minister Idris dismissed these accusations as tactics aimed at strong-arming the government, pointing out that other crypto firms operating in Nigeria had not faced similar legal challenges. “There are other companies operating in the crypto sector in Nigeria, you don’t see them [facing charges],” he said, adding that the government is out to protect investors, “not to cripple anybody.”
Last month, Nigeria sued Binance for $79.5 billion in damages for economic losses allegedly caused by the cryptocurrency exchange’s operations in the country. Additionally, the government demanded $2 billion in back taxes.
Related story: Nigeria suing Binance for $81.5 billion
Thursday, February 20, 2025
Nigeria suing Binance for $81.5 billion
Nigeria has filed a lawsuit seeking to compel Binance to pay $79.5bn for economic losses the country’s government says were caused by the cryptocurrency exchange’s operations there and $2bn in back taxes, court documents showed on Wednesday.
Authorities blame Binance, the world’s largest crypto exchange, for Nigeria’s currency woes and detained two of its executives in 2024 after crypto websites emerged as platforms of choice for trading the local naira currency.
Binance, which is not registered in Nigeria, did not immediately respond to a request for comment. It has previously said it is working with Nigeria’s Federal Inland Revenue Service (FIRS) to resolve potential historic tax liabilities.
The inland revenue service alleges that Binance has a “significant economic presence” in Nigeria and is therefore liable for corporate income tax. It is seeking a court declaration that Binance pay income taxes for 2022 and 2023, plus a 10% annual penalty on unpaid amounts. FIRS is also requesting a 26.75% interest rate on the unpaid taxes, based on the Central Bank of Nigeria’s lending rate.
Binance was already facing four counts of tax evasion in Nigeria after a government crackdown on the industry last year. The charges include non-payment of value-added tax, company income tax, failure to file tax returns and complicity in helping customers to evade taxes through its platform.
Binance, which is contesting the charges, announced last March that it was stopping all transactions and trading in the naira. The company is also facing separate anti-graft agency money laundering charges, which it has denied.
Authorities blame Binance, the world’s largest crypto exchange, for Nigeria’s currency woes and detained two of its executives in 2024 after crypto websites emerged as platforms of choice for trading the local naira currency.
Binance, which is not registered in Nigeria, did not immediately respond to a request for comment. It has previously said it is working with Nigeria’s Federal Inland Revenue Service (FIRS) to resolve potential historic tax liabilities.
The inland revenue service alleges that Binance has a “significant economic presence” in Nigeria and is therefore liable for corporate income tax. It is seeking a court declaration that Binance pay income taxes for 2022 and 2023, plus a 10% annual penalty on unpaid amounts. FIRS is also requesting a 26.75% interest rate on the unpaid taxes, based on the Central Bank of Nigeria’s lending rate.
Binance was already facing four counts of tax evasion in Nigeria after a government crackdown on the industry last year. The charges include non-payment of value-added tax, company income tax, failure to file tax returns and complicity in helping customers to evade taxes through its platform.
Binance, which is contesting the charges, announced last March that it was stopping all transactions and trading in the naira. The company is also facing separate anti-graft agency money laundering charges, which it has denied.
Friday, October 25, 2024
Nigeria releases American crypto executive after dropping money laundering case
Tigran Gambaryan, Binance’s head of financial crime compliance, was freed on a humanitarian basis and was returning to the United States to receive medical attention, White House national security adviser Jake Sullivan said in a statement Thursday announcing the release.
“I am grateful to my Nigerian colleagues and partners for the productive discussions that have resulted in this step and look forward to working closely with them on the many areas of cooperation and collaboration critical to the bilateral partnership between our two countries,” Sullivan said. He said he had spoken with Gambaryan's wife “to share the good news.”
Gambaryan was arrested in February during a business trip to Nigeria alongside Nadeem Anjarwalla, the company’s regional manager in Africa, who fled custody and remains at large.
Nigerian authorities had accused Binance, the world’s largest cryptocurrency exchange, and Gambaryan of using the platform to launder up to $35 million and to manipulate the local naira currency, which they deny.
Nigeria is Africa’s largest crypto economy in terms of trade volume, with many citizens using crypto to hedge their finances against surging inflation and the declining local currency.
But as its users grew and the government struggled to stabilize the currency, officials alleged without providing evidence publicly that the platform was being used to launder money and finance terrorism, forcing it to stop all trading with the local currency on its platform.
On Wednesday, R.U. Adaba, a prosecuting lawyer with Nigeria’s Economic and Financial Crimes Commission, told the Federal High Court in Nigeria’s capital, Abuja, that the government was ending the case after “taking into consideration some critical international and diplomatic reasons."
Binance still faces charges on suspicion of tax evasion and operating without the required license.
Gambaryan’s trial has been shrouded in controversy, including over allegations that he and his colleague were illegally detained and their passports seized. Binance also alleged that Nigerian officials demanded bribes to release him and Anjarwalla.
The Nigerian government denied the bribery allegation and defended the prosecution as following the rule of law.
Gambaryan’s health deteriorated as his court case dragged on. The court in Abuja denied him bail twice after a judge ruled he was a flight risk and that he should remain at the Kuje prison in the capital city.
By Chinedu Asadu, AP
Related story: Nigeria drops money laundering charges against Binance executive
Wednesday, October 23, 2024
Nigeria drops money laundering charges against Binance executive
Nigeria's government has withdrawn a money laundering case against Binance executive Tigran Gambaryan to allow him seek medical treatment abroad, the government's lawyer said on Wednesday.
Gambaryan, a U.S. citizen and head of financial crime compliance at Binance, has been in detention in Nigeria since late February and has been charged with laundering more than $35 million. Gambaryan and Binance deny the charges.
The government's lawyer said it would continue the money laundering case against Binance without Gambaryan. Separate tax evasion charges against Binance, the world's largest crypto exchange, remain in place. Binance has also denied those charges.
Related story: Binance exec and former U.S. agent Tigran Gambaryan denied bail by Nigeria
Tuesday, October 15, 2024
Binance exec and former U.S. agent Tigran Gambaryan denied bail by Nigeria
It has been almost eight months since Binance executive and former IRS agent, Tigran Gambaryan, has been wrongfully detained in Nigeria over a feud between the African nation and the world’s largest crypto exchange. In the latest blow to his fight for freedom, he was denied bail by a Nigerian judge on Friday despite his deteriorating health.
Gambaryan was jailed in February after visiting Nigeria to address allegations that Binance was undermining the local currency, which began to crash in May 2023. Economists have laid the blame for this on corruption and economic mismanagement by the country’s leaders—but, in what critics say is an effort to find a scapegoat, Nigerian officials arrested Gambaryan and another Binance executive and charged them with financial crimes.
Since his detention, Gambaryan’s condition has worsened significantly. He is now being held at Nigeria's notorious Kuje prison alongside members of the Boko Haram terrorist group and has been denied access to his legal team. Throughout his time in prison he has suffered from malaria, tonsillitis, pneumonia, and complications from a herniated disc in his back which requires “high-risk specialized surgery.”
While he sits in a cell thousands of miles away from his wife and children in Georgia, U.S. representatives and Binance executives have intensified calls for his release. His wife, Yuki Gambaryan, has continued to fight for his freedom since he was detained.
Following the hearing on Friday, a Binance spokesperson said in a statement, ”He has been unlawfully detained for over 220 days. Tigran did not go to Nigeria as a decision-maker and there is no good reason to continue to hold him. We are committed to working with the Nigerian government to resolve issues, but Tigran must be allowed to go home.”
While initially reluctant to get involved, U.S. officials began to advocate for Gambaryan’s release over the summer. Most recently, Rep. Rich McCormick (R-Ga.), a member of the Armed Services and Foreign Affairs Committees, called upon the U.S. State Department to take a stronger stance in talks with Nigeria. “All cards should be on the table. We should be putting enormous leverage against Nigeria until they release him or at least turn him over to the consulate to be treated fairly, he get an expedient case with a legitimate charge,” McCormick said on the Illicit Edge podcast.
In June, 16 bipartisan U.S. lawmakers sent a letter to President Joe Biden urging for Gambaryan to be released, while over 100 U.S. prosecutors and special agents sent a similar letter to the U.S. State Department. In the following weeks, Rep. French Hill (R-Ark.) and Rep. Chrissy Houlahan (D-Pa.) visited Gambaryan in the Nigerian prison. Also in June, Nigeria dropped some charges against Gambaryan after FBI director Christoper Wray visited the country on an unrelated matter.
Gambaryan’s ongoing detention came after the State Department negotiated the release of basketball player Brittany Griner and journalist Evan Gershkovich from Russia earlier this year. Both Americans had received a “wrongfully detained” designation, which made their release a top priority with a special agency within the State Department. Gambaryan has yet to receive that designation to the frustration of his family and others, likely because Nigeria is a nominal ally of the U.S.
By Catherine McGrath, Fortune
Related stories: US Urges Nigeria to release Binance executive as health worsens
Video - Detained Binance executive appears in court in Nigeria for tax, money laundry charges
Friday, September 13, 2024
US Urges Nigeria to release Binance executive as health worsens
The US government is urging Nigeria to release an employee of the world’s largest crypto exchange Binance who was arrested in February and has faced worsening health conditions in prison, according to two US State Department officials.
US Secretary of State Antony Blinken raised the issue directly with his Nigerian counterpart in May, as confirmed by the officials. US diplomats, including the ambassador to Nigeria, have since held private discussions with several top Nigerian officials, including the country’s president, finance minister, attorney general, and trade minister, advocating for the employee’s release.
The detained employee, Mr. Gambaryan, 40, has reportedly endured significant medical challenges while incarcerated, including a bout of malaria and complications stemming from a herniated disk.
US diplomats have stressed the need for his release on humanitarian grounds. According to his family, Mr. Gambaryan has not received adequate medical attention, leading to a rapid decline in his health.
Efforts to secure his release have escalated since June, with the State Department repeatedly pressing the Nigerian government over concerns about his lack of proper medical care. Despite this, his supporters are calling on the U.S. to take more decisive action.
Mr. Gambaryan’s wife, Yuki, expressed her frustrations in an interview, saying, “I would be very upset if the US government welcomes Nigerian delegates with open arms,” referring to the upcoming visit of Nigerian officials to New York for the United Nations General Assembly.
As Crypto Briefing reported, in May, Binance CEO Richard Teng demanded the release of Tigran Gambaryan, detained in Nigeria for over 70 days, warning of the dangerous precedent it sets for global businesses.
In June, US lawmakers visited Binance executive Tigran Gambaryan in a Nigerian prison, advocating for his release due to critical health conditions and inadequate care.
By Diego Almada Lopez, Crypto Briefing
Related story: US lawmakers say Nigeria is detaining American to extort Binance
Tuesday, August 20, 2024
Nigeria’s SEC Approves First Operating License for Local Crypto Exchange Quidax
In a landmark development, the Nigeria SEC has approved the first provisional operating license for local crypto exchange Quidax.
The regulator’s move marks a milestone in Nigeria’s crypto regulations. Moreover, it could open doors for more crypto exchanges, both locally and internationally, to venture into the country.
Local Crypto Exchange Bags Nigerian SEC’s First Provisional Operating License
According to a Cointelegraph report, the African-founded crypto exchange Quidax bagged Nigeria’s SEC crypto operating license. This landmark achievement has positioned Quidax as the first crypto exchange to receive a provisional operating license in Nigeria.
Moreover, the regulator’s approval is a milestone in the country’s crypto regulatory advancements. It indicates Nigeria’s readiness to embrace digital assets and legitimize its crypto market.
According to the report, the license offers Quidax the right to operate as a registered crypto exchange in Nigeria. It will also allow the crypto exchange to partner with other financial institutions, including banks, pending approval from the Central Bank of Nigeria.
Quidax CEO and co-founder Buchi Okoro expressed his excitement over the license, which he described as a remarkable feat for the exchange. He also reiterated Quidax’s commitment to its core values, which include customer satisfaction and funds’ safety.
Further, the executive appreciated the SEC’s approval of the crypto operational license. He noted the agency’s positive efforts to establish progressive regulatory measures for the crypto industry.
Also, Okoro mentioned that the SEC, under its new Chair, Dr. Emomotimi Agama focuses on ensuring orderliness, investors’ safety, and confidence in the industry.
Moreover, the executive said the license represents a big win for Nigeria’s crypto industry and shows the country’s readiness to adopt positive changes within the financial digital space.
Digital Asset Regulations and Trends in Nigeria
On June 21, the Nigeria SEC released a comprehensive amendment to its regulations on digital asset issuance. The rules also indicated some requirements for offering exchanges, platforms, and custody as part of the Accelerated Regulatory Incubation Program (ARIP).
Notable, ARIP aims to assist virtual asset service providers (VASPs) in complying with new regulatory standards.
However, concerns remain that strict approaches and requirements could limit the growth of local crypto exchanges or the entrance of new ones.
The SEC demands a compulsory minimum upfront capital deposit of 500 million naira ($556,620) from Digital Asset Exchanges and Digital Assets Offering Platforms (DAOs). Also, the
Nigeria’s stringent crypto regulations have forced some crypto companies to exit. The OKX crypto exchange disclosed its operational closure in Nigeria due to changes in local regulatory rules.
The OKX exit tolls the pattern of other prominent crypto exchanges that previously left the country, including Binance and KuCoin.
Despite these, as Africa’s largest economy, Nigeria remains among the countries with the highest crypto adoption globally. In a survey comprising over 15 countries, Nigeria emerged with the most crypto-aware population in the world.
Similarly, Nigeria ranked second in crypto adoption among 154 countries, according to Chainalysis’ “The 2023 Geography of Cryptocurrency.”
By Rida Fatima, Tech Report
Related story: Nigeria targets crypto accounts worth $38 million in intensified crackdown
Friday, August 16, 2024
Nigeria targets crypto accounts worth $38 million in intensified crackdown
The move marks an escalation in a year-long crackdown on crypto use since Nigeria’s central bank alleged in February that crypto platforms enabled money flows through the country from unidentifiable sources.
In a Tuesday briefing to a government council chaired by President Bola Tinubu, National Security Adviser Nuhu Ribadu said his office initiated action to freeze $38 million held as crypto in digital wallets. The accounts allegedly received donations in support of nationwide cost of living protests that were held at the beginning of this month, local media outlets reported.
A separate report by Premium Times detailed screengrabs of what it purports to be a court order in Nigeria’s capital Abuja authorizing EFCC, Nigeria’s financial crimes investigator, to freeze four wallets holding about 37 million USDT, a stablecoin valued at par with the dollar. The wallets “are owned by individuals being investigated for offences of Money Laundering and Terrorism Financing,” the EFCC said according to the purported court order.
It is not clear when the agency began its investigation of the wallets’ owners. The order to freeze did not specify a connection to the protests and was granted on Aug. 9, the protests’ penultimate day. An EFCC spokesperson did not immediately respond to requests for comment by Semafor Africa.
Know More
Nigeria’s crackdown has included shutting off user access to crypto websites and trading platforms, and the arrest of staffers of Binance, one of the world’s largest crypto companies. Authorities have said crypto trading fueled a sharp weakening of the naira currency earlier this year.
Some doubt has been raised as to the content of the crypto wallets targeted by Nigerian authorities.
Two reports on Wednesday argued that two of the wallets contained less crypto than the EFCC’s court order stipulated and that they remained active, while a third wallet was non-existent. KuCoin, a crypto trading exchange that suspended its peer-to-peer service in Nigeria in May and reported by technology publication Techpoint as the owner of one of the four wallets, could not be reached for comment.
Alexander’s view
Nigeria’s latest action against crypto holders is not surprising given the government’s tone all year, but its overlap with cost of living protests suggests a broader security anxiety within government circles.
Despite veiled threats by the army and police to discourage the protests, residents across the country marched earlier this month against the soaring prices of food and other essentials. The protests did not quite last for the scheduled 10-day period as intensity faded after the first few days. Security forces used tear gas and live ammunition on protesters. At least six people were reportedly killed on the first day of demonstrations.
The specter of Russian flags being flown in northern states, where incidents of looting of stores were also attributed to protesters, appears to have evoked a determination to identify and punish leading actors of the protests. Targeting funding sources is one way to do so, as the authorities did in 2020 during protests against police brutality known as #EndSARS.
By Alexander Onukwue, Semafor
Related story: US lawmakers say Nigeria is detaining American to extort Binance
Wednesday, July 3, 2024
Nigeria to collect 7.5% tax on cryptocurrency transactions
Nigeria government is to receive a 7.5 percent Value Added Tax on Cryptocurrency transactions from users registered in the country from July 8, 2024.
A popular cryptocurrency platform, KuCoin disclosed this in a recent email notice to users in Nigeria.
“We are writing to inform you of an important regulatory update that impacts our users from the Republic of Nigeria.
“Starting from July 8th, 2024, we will begin collecting a Value-Added Tax (VAT) at a rate of 7.5 percent on transaction fees in each trade for users whose KYC information is registered in Nigeria.”
According to official data, cryptocurrency transaction volume is $59 billion yearly.
Meanwhile, Ray Youssef, director of NoOnes, a cryptocurrency platform said peer-to-peer business is worth $500 billion.
In February 2024, the Governor of the Central Bank of Nigeria, Olayemi Cardoso raised the alarm that a suspicious $26 billion was funneled through Binance without a trace.
By Ogaga Ariemu, Daily Post Nigeria
Related story: US lawmakers say Nigeria is detaining American to extort Binance
Friday, June 7, 2024
US lawmakers say Nigeria is detaining American to extort Binance
US lawmakers have accused Nigeria of wrongfully detaining an American staff member of cryptocurrency exchange Binance in an attempt to extort money. They urged President Joe Biden and the State Department to quickly intervene in the case.
Tigran Gambaryan, 40, and a company colleague were arrested by Nigerian security authorities in February while on an official visit to the country.
Gambaryan is facing charges of tax evasion, money laundering and engaging in unlicensed financial activities, in a trial that began in May.
“Mr. Gambaryan’s health and well-being are in danger, and we fear for his life,” read a letter dated June 4 and signed by 16 members of the US House Foreign Affairs Committee.
“It is crucial to emphasize that the charges against Mr. Gambaryan are baseless and constitute a coercion tactic by the Nigerian government to extort his employer, Binance,” stated the letter, which also said he had been subjected to harsh treatment and called for swift action to save his life.
Nigeria’s government, responding to the accusations, said it is following due process. “Prosecutors are confident of their case, based on the facts and evidence gathered. Binance will have every opportunity to defend itself in court against these severe charges of financial crimes,” Information Minister Mohammed Idris said on Wednesday.
Gambaryan’s representatives and Binance have demanded his release, stating that he has no decision-making power in the company. They say he should not be held to answer to any alleged company offenses.
Nigerian authorities this year renewed their crackdown on crypto, arguing that trades on platforms like Binance helped weaken the local naira currency even as it evades paying taxes on earnings from its activities. Idris, the information minister, claimed Binance had “a turnover in Nigeria of over $20 billion” in 2023.
The central bank lifted a ban on banks enabling crypto transactions last December but restrictions remain in effect as no institutions have been licensed to carry out crypto transactions in the country. Internet service providers have maintained restrictions imposed in February on user access to the apps and websites of crypto companies, including that of Binance.
The US lawmakers’ claim of extortion mirrors those Binance made in May. Richard Teng, the company’s CEO, said executives were asked by an agent of a Nigerian legislative committee to make “a significant payment in cryptocurrency” to settle allegations of tax violations after a meeting in January this year. Binance declined to make the payment, Teng said.
Gambaryan’s trial will continue in a court in Nigeria’s capital Abuja this month. He has been remanded in the city’s Kuje prison, a maximum security facility that has previously been used to detain alleged extremists affiliated with the militant Islamist group Boko Haram.
THE VIEW FROM WASHINGTON
Changpeng ‘CZ’ Zhao, Binance’s billionaire founder and former chief executive, began serving a four-month sentence in a prison in California this month and will be due for release in September, according to the US Bureau of Prisons website.
The 47-year-old Canadian pleaded guilty to violating US money laundering laws and was sentenced in April. The company also pleaded guilty to operating an unlicensed money transmitting business and agreed to pay a $4 billion fine by the Justice Department.
US Treasury Secretary Janet Yellen denounced Binance for “willful failures [that] allowed money to flow to terrorists, cybercriminals, and child abusers through its platform.”
A group of former prosecutors and federal agents in the US also wrote to US Secretary of State Anthony Blinken, urging him to “step up” efforts to secure Gambaryan’s release, Axios reports.
By Alexander Onukwue, SEMAFOR
Related stories: Binance executive collapeses in court in Nigeria - Trial pushed to June
Court in Nigeria adjourns Binance, executives' tax evasion trial to June 14
Friday, May 24, 2024
Binance executive collapses in court in Nigeria - Trial pushed to June
A Nigerian court on Thursday adjourned a money laundry trial against cryptocurrency exchange Binance and two of its executives to June 20 because one of the defendants was not well enough to stand trial.
Binance and executives Tigran Gambaryan, a U.S. citizen and head of financial crimes compliance, and British-Kenyan national Nadeem Anjarwalla, a regional manager for Africa, have been charged with laundering more than $35 million and engaging in specialised financial activities without a licence.
They have all pleaded not guilty to the money laundering charges.
Gambaryan, who has been in detention since February, is "very ill and requires comprehensive medical attention," his lawyer said in a letter to trial judge Emeka Nwite.
"The applicant broke down yesterday and the medical facility gave him intravenous treatment for malaria," the letter said.
Gambaryan, who also faces four counts of tax evasion alongside Binance and his colleague Anjarwalla, did not appear in court on Wednesday for that trial.
Judge Nwite ruled that Gambaryan should be treated at the hospital requested by his lawyer or any other recommended by prison authorities. He adjourned for the trial to continue on June 20 and 21.
Nigeria blamed Binance for its currency woes after cryptocurrency websites became the platforms of choice for trading the Nigerian naira as the country grappled with chronic dollar shortages and the currency fell to a record low.
By Camillus Eboh, Reuters
Related story: Nigeria rejects Binance CEO's bribery claim
Wednesday, May 22, 2024
Court in Nigeria adjourns Binance, executives' tax evasion trial to June 14
A Nigerian court has adjourned a tax evasion case against Binance to next month for possible arraignment of the cryptocurrency exchange and two of its executives after a trial stalled on Wednesday, the judge said.
The matter stalled because authorities failed to bring Tigran Gambaryan, a U.S. citizen and Binance head of financial crime compliance, to court. No reason was given for Gambaryan's absence in court.
On Friday, an Abuja court ruled that Gambaryan could stand trial in the tax evasion case on behalf of Binance.
The CEO of Binance Richard Teng in May accused Nigeria of setting a dangerous precedent after its executives were invited to the country and then detained as part of a crackdown on crypto. The company is challenging the trials on charges of tax evasion and money laundering.
Binance and its executives Gambaryan and Nadeem Anjarwalla, a British-Kenyan who is Binance's regional manager for Africa, face four counts of tax evasion, including failure to register with Nigeria's Federal Inland Revenue Service for tax purposes.
Anjarwalla escaped custody in March but is still listed on the case, without indicating he was 'at large' - a factor that could stall trial given that Nigerian law requires that parties must be served before the case can proceed, Gambaryan's lawyer Chukwuka Ikwuazom said.
The revenue service lawyer Moses Ideho said Gambaryan was supposed to have been produced in court by Nigeria's prison service and that he did not know why he was not in court.
Judge Emeka Nwite adjourned the possible arraignment of Binance and Gambaryan to June 14.
In addition to the tax evasion trial, Binance and the executives have also been charged with laundering more than $35 million by Nigeria's anti-graft agency, the Economic and Financial Crimes Commission (EFCC). A money laundering trial will be heard on Thursday.
Binance has said it is working closely with Nigerian authorities following the detention of Gambaryan.
By Camillus Eboh, Reuters
Related stories: Nigeria rejects Binance CEO's bribery claim
Thursday, May 9, 2024
Nigeria rejects Binance CEO's bribery claim
Nigerian authorities on Wednesday denied allegations from Binance's CEO of soliciting bribes, saying the claim was a "diversionary tactic" and an "act of blackmail" aimed at undermining ongoing criminal charges against the company.
Binance, the world's largest crypto exchange, and two of its executives face separate trials on charges of tax evasion and laundering more than $35 million, which the company is challenging.
Tigran Gambaryan, a U.S. citizen and Binance's head of financial crime compliance, remains in custody while British-Kenyan Nadeem Anjarwalla has fled the country.
CEO Richard Teng in a blog post accused unidentified Nigerian officials of demanding a $150 million cryptocurrency bribe to halt the investigations.
In a statement on Wednesday, Nigeria's Information Ministry spokesperson Rabiu Ibrahim said the claims "lack any iota of substance". He accused Binance of attempting to undermine the country's legal proceedings.
"It is nothing but a diversionary tactic and an attempted act of blackmail by a company desperate to obfuscate the grievous criminal charges it is facing in Nigeria," Ibrahim said.
"The facts of this matter remain that Binance is being investigated in Nigeria for allowing its platform to be used for money laundering, terrorism financing, and foreign exchange manipulation through illegal trading," he said.
Nigerian authorities claim the bribery allegations are part of a wider campaign by Binance to discredit investigations against the company, citing similar legal troubles in the United States.
Binance did not immediately comment, but in a statement on Tuesday accused Nigeria of setting a dangerous precedent after its executives were invited for talks and then detained as part of a crackdown on the crypto industry.
Teng's blog is the latest in a dispute that has already seen Binance close in Nigeria.
Nigeria blamed Binance for its currency problems after cryptocurrency websites emerged as platforms of choice for trading the Nigerian naira as the country grappled with chronic dollar shortages.
Binance said in early March it was stopping all transactions and trading in naira.
By Camillus Eboh, Reuters
Related story: Bail Hearing in Nigeria for Jailed Binance Exec Postponed Until May 17
Tuesday, May 7, 2024
Nigeria to Ban Person-to-Person Crypto Trade in Battered Naira
Securities and Exchange Commission Director General Emomotimi Agama also told a meeting with fintech professionals on Monday that new rules would be rolled out “in the coming days” covering crypto exchanges, digital asset custodians and other corners of the sector.
“The thing that needs to be done is delisting the naira from the P2P space in order to avoid the level of manipulation that is currently happening,” Agama said. “Recent concerns regarding crypto P2P traders and their perceived impact on the exchange rate of the naira has underscored the need for collective action,” he said in a statement released by the Abuja-based SEC on Monday evening.
Peer-to-peer platforms allow crypto investors to trade directly with one another, rather than via a central intermediary. In such transactions, the traders themselves negotiate the price.
The warning follows Nigeria’s ban on Binance Holdings Ltd., the world’s largest cryptocurrency exchange, and the arrest of two of its executives when they visited the country in February.
One of them fled but the other, Tigran Gambaryan, has been jailed at the Kuje correctional center in Abuja and will go on trial this month where he faces charges of tax evasion, currency speculation and money laundering.
“Manipulations and all forms of activities that undermine our national interest would not be acceptable,” Agama said.
Africa’s most populous nation has seen residents flock into crypto assets as a hedge for weakness in the naira, which has lost 65% of its value against the dollar since the government eased currency rules in June to make the unit more attractive to foreign investors.
Central bank Governor Olayemi Cardoso in February accused Binance of allowing illicit transactions in the naira on its platform, which the authorities subsequently blocked.
“SEC will not hesitate to utilize all the powers within its mandate to handle issues that are negative and pose a threat to national interest,” Agama said. “We ask that those involved in sharp practices that undermine national interest should cease and desist.”
By Emele Onu, Bloomberg
Related story: Video - Detained Binance executive appears in court in Nigeria for tax, money laundry charges
Wednesday, April 24, 2024
Bail Hearing in Nigeria for Jailed Binance Exec Postponed Until May 17
Detained Binance executive Tigran Gambaryan will remain in prison in Nigeria until at least May 17, following an Abuja court’s ruling to postpone a scheduled bail hearing until after he is tried on money laundering charges.
Gambaryan, an American citizen and former Internal Revenue Service (IRS) special agent, is Binance’s head of financial crime compliance. He and a colleague, Binance’s regional manager for Africa Nadeem Anjarwalla, a dual U.K.-Kenyan national, were arrested and detained on Feb. 26 after flying to Nigeria’s capital city of Abuja to meet with the Nigerian government at the government’s request.
The Nigerian government had previously accused Binance of enabling currency speculation that crashed its currency, the naira. At first, Nigerian officials denied that Gambaryan and Anjarwalla were under arrest, but the pair were put under house arrest upon arrival and, along with Binance, charged with money laundering and tax evasion a month later.
Gambaryan was moved to the notorious Kuje prison – which also houses suspected members of the Boko Haram terrorist group – after Anjarwalla escaped and fled the country under mysterious circumstances. In a cell phone video filmed after Anjarwalla’s escape on March 23, a distressed Gambaryan said he had no knowledge of his colleague’s escape plans and asked the U.S. government for help.
The government’s response to Gambaryan’s imprisonment has been tepid. According to his family, Gambaryan has received only one visit from the U.S. embassy staff since being moved to Kuje prison and has limited access to his legal team.
“There is no justice in what is being done to my husband. I am in a constant state of grief and anxiety, not knowing what other injustice he is going to be put through,” Gambaryan’s wife Yuki Gambaryan said in a statement. “It is outrageous that Tigran, an innocent man, continues to be kept in a prison cell and the ruling on his bail will not be made until after the trial starts…This is just pure cruelty.”
Both Gambaryan and Anjarwalla have filed suit against Nigeria’s National Security Advisor, Nuhu Ribadu, and the Economic Financial Crimes Commission for violating their human rights.
Gambaryan has pleaded “not guilty” to all of the charges against him, which his family has called “bogus.”
The money laundering trial against Gambaryan and Binance will begin on May 2. The tax evasion charges will be tried separately beginning on May 17.
According to Gambaryan’s family, he will spend his 40th birthday in prison.
By Cheyenne Ligon, CoinDesk
Related story: Video - Detained Binance executive appears in court in Nigeria for tax, money laundry charges
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