The Federal High Court in Abuja has discharged Tigran Gambaryan, a 39-year-old American, and Nadeem Anjarwalla, a former employee of the Federal Inland Revenue Service (FIRS), from the tax evasion case against the cryptocurrency exchange platform, Binance.
Following information from Binance regarding its appointment of Ayodele Omotilewa as a Nigerian representative, trial judge Emeka Nwite made the decision.
During the resumed proceedings on Friday, counsel for Binance, Tonye Krukrubo, informed the court that his client had forwarded the name of its official representative to the FIRS and to the court.
Counsel for the FIRS, Moses Idehu, confirmed this and requested permission to substitute the previous charges with a fresh amended charge dated June 13, 2024.
In the FIRS's fresh charge, Binance is now listed as the only defendant, implying that Gambaryan and Nadeem are no longer associated with the case. The court has fixed July 12 for the new Binance executive to take his plea.
The charge accuses the Binance trading platform of offering services in the buying and selling of cryptocurrencies and the remittance and transfer of those assets to Nigerians while failing to deduct the necessary Value Added Taxes (VAT) arising from its operations.
Idehu urged the court to direct that the Binance representative from Nigeria should enter the dock and take his plea on behalf of the corporation he represents.
However, Krukrubo and Gambaryan's legal team argued that Nigerian law does not mandate a representative of a company that is sued to stand inside a dock and take a plea.
They contended that a representative of a company that is sued may not need to attend proceedings and can even write a letter to the court in respect of the company's position on a matter.
The defense seized the moment and urged the court to discharge Gambaryan and Nadeem from the FIRS case since a representative had been officially sent to the proceedings.
The FIRS also confirmed that the matter is now between the federal government and Binance.
This development highlights the ongoing legal challenges faced by cryptocurrency exchanges in Nigeria, as regulators seek to ensure compliance with tax laws and regulations.
The case also underscores the importance of having a clear legal framework for the cryptocurrency industry in the country.
