The judge was urged to drop the charges by Binance’s lawyer, who claimed the case had no merit.
A Nigerian court has set the outcome in a tax evasion lawsuit against cryptocurrency exchange Binance for October 11. Four charges of tax evasion have been leveled against Binance, one of which is non-registration with Nigeria’s Federal Inland Revenue Service (FIRS).
On Friday, July 12, Binance’s lawyer Ayodele Omotilewa, appeared in court and pleaded not guilty to all four charges before Judge Emeka Nwite, local media reports said.
Court case postponed until October
Like the previously dropped charges against Binance executives Tigran Gambaryan and Nadeem Anjarwala, Omotilewa requested the judge to drop the charges on the grounds that the case is without merit.
The Federal High Court in Abuja in June dismissed tax evasion charges against Gambaryan and Anjarwala. Gambaryan, a US citizen, and Anjarwala, a British Kenyan refugee, both face money laundering charges, which they deny.
The court’s decision came after FIRS filed revised charges that essentially dismissed the two executives’ tax fraud charges. The amendment came after Binance appointed Omotilewa to oversee its local operations.
Judge Nwite’s has adjourned the case until October to allow for further deliberation and scrutiny of the evidence. This will give the prosecution and defence more time to prepare their cases.
Context of the case
Anjarwala and Gambarian were detained by Nigerian police in February while they were on a visit to the country. They were detained for several weeks after being charged with tax evasion and money laundering.
Although Binance has not yet responded to the most recent events, it has previously stated that the charges ought to be dropped. However, Nigeria has blamed Binance for its currency problems, claiming that cryptocurrency platforms have become the preferred way to trade Nigerian naira amid a severe dollar shortage and the record low value of the fiat currency.
The National Security Advisor’s opinion that cryptocurrency trading presents a risk to national security is supported by the crackdown on cryptocurrency-related activity. The Central Bank of Nigeria (CBN) has directed fintech companies to be part of this endeavor by identifying and reporting bitcoin transaction-related accounts and taking necessary measures to stop such behavior.
In the ongoing legal battle, the head of CBN payments policy and regulation went to court on July 6 and argued that only banks and other approved financial institutions should be allowed to handle deposits and withdrawals for Binance.
