The Federal Inland Revenue Service (FIRS) of Nigeria has recently withdrawn the allegations of tax evasion that were previously directed at two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla. Consequently, Binance now remains the only party facing these charges. This development occurred a week subsequent to the expression of concern by sixteen U.S. lawmakers who accused Nigeria of effectively taking Gambaryan hostage. Gambaryan had been in detention for a total of 110 days, while Anjarwalla managed to avoid detention on March 22.
In a letter dated June 4, addressed to President Biden, the U.S. lawmakers criticized the Nigerian government’s actions, describing the charges against Mr. Gambaryan as unfounded and alleging that they were part of an intimidation strategy aimed at extracting concessions from his employer, Binance. They emphasized that Mr. Gambaryan, a U.S. citizen, had been unjustly detained by a foreign government.
A representative from Binance expressed relief at the FIRS’s decision to amend the charges, which led to the dismissal of the tax-related accusations against Tigran Gambaryan. The spokesperson’s statement, which was shared with TechCabal, highlighted that this move underscores the fact that Gambaryan is not a key decision-maker within Binance and should not be detained as a means for the company to settle disputes with the Nigerian authorities.
Despite the dismissal of the tax evasion charges, Gambaryan remains in custody due to ongoing money laundering charges brought forth by Nigeria’s Economic and Financial Crimes Commission (EFCC). He is currently awaiting a court decision on this matter. According to his legal team, Gambaryan has been diagnosed with malaria and pneumonia while in detention.
The original tax evasion charges against Gambaryan and Anjarwalla were filed in March 2024 after the FIRS accused them of neglecting to pay taxes on cryptocurrency transactions that amounted to billions of naira. The cryptocurrency exchange itself was accused of failing to pay value-added tax and company tax, as well as not filing tax returns.
Prior to the tax evasion allegations, Gambaryan had been detained by Nigeria’s anti-corruption agency, the EFCC, and was held for several days before being granted bail. His first court appearance to address the money laundering charges took place on February 22, 2024.
