A Nigerian court ruling today (Friday) has paved the way for Binance CEO Tigran Gambaryan to stand trial on behalf of the cryptocurrency exchange in the ongoing tax evasion case. Along with Gambarian, a US citizen and head of financial crimes compliance, British-Kenyan national Nadeem Angarwala, regional director for Africa, also faces four counts of tax evasion.
In addition to tax evasion charges, they were accused of laundering more than $35 million and engaging in specialized financial activities without a license. Despite the accusations, all parties involved have maintained their innocence regarding the money laundering accusations.
Concerns about arrests during cryptocurrency talks
After the court hearing on Friday, Binance's lawyers and Gambarian's lawyers declined to comment. Gambaryan remains in detention, while Angarwala reportedly fled the country in March. The Nigerian authorities are making efforts, in cooperation with Interpol, to locate and arrest Angarwala.
The Binance CEO has criticized Nigeria, claiming that the country's actions set a dangerous precedent. The executives were initially invited to Nigeria in February for discussions with authorities, but were later detained as part of a broader crackdown on cryptocurrencies.
Nigeria links currency problems to cryptocurrency platforms
Although Binance itself has not been charged in the tax evasion case, Nigeria's Federal Internal Revenue Service has indicated that Gambaryan may face charges on behalf of the exchange. Gambarian's lawyer argued that he had no formal role within Binance and no clear instructions to represent the company in legal matters.
Judge Emeka Nwaite decided on Friday that Gambarian should be arraigned on the charges against Binance due to his position as chief financial compliance officer and his appointment to represent the company during meetings in Nigeria.
Gambaryan is scheduled to appear in court on Wednesday to enter a plea on behalf of Binance. However, his bail application in connection with the money laundering case was rejected.
Nigeria attributed its currency challenges in part to Binance, claiming that the cryptocurrency platforms contributed to the trading of the Nigerian naira amid the country's ongoing dollar shortage.
This article was written by Tariq Sikdar at www.financemagnates.com.