The recent criminal charges faced by the cryptocurrency exchange Binance in Nigeria have brought to light the lack of legal representation the company had during its court hearing on April 4. Surprisingly, only the compliance chief, Tigran Gambaryan, was present at the hearing, despite being detained by the Nigerian government since February. The hearing, which was expected to progress, was postponed by the Nigerian High Court until April 19. Strangely, Binance has not yet responded to requests for comment on the matter.
Authorities in Nigeria have accused Binance and its executives of failing to register with local agencies and evading tax responsibilities. Moreover, the government alleged that Binance was involved in aiding users who avoided tax payments. Despite having Gambaryan in custody for over a month, the Nigerian government failed to serve the case charges to the defendants, leading to arguments from legal counsel that the arraignment should be halted.
Over the past two months, Binance has been embroiled in disputes with the Nigerian government over its alleged role in worsening the country’s foreign exchange issues. Despite vehemently denying any wrongdoing, both Binance and its executives have faced criminal complaints from Nigerian authorities, including the Federal Inland Revenue Services and the Economic and Financial Crimes Commission. One of the executives, Nadeem Anjarwalla, a UK citizen, managed to evade custody in March and is currently being tried in absentia.
In light of these legal challenges, Binance has called for the release of Gambaryan, highlighting that he does not play a significant role in decision-making within the company. Gambaryan, on the other hand, has taken legal action against the Nigerian authorities, citing violations of his fundamental human rights. The situation remains complex, with Binance seeking to navigate through the legal hurdles it faces in Nigeria.
This recent episode underscores the importance of legal representation and compliance for companies operating in foreign jurisdictions. It also highlights the challenges that cryptocurrency exchanges like Binance can encounter when dealing with various regulatory authorities around the world. As the case unfolds, the outcome will likely have significant implications for Binance and its operations in Nigeria and beyond.