Crypto platform Binance has been charged by Nigerian authorities for tax evasion, according to Tech Cabal. Two executives of the firm, Nadeem Anjarwalla and Tigran Gambarya, who were detained, were also charged with tax evasion.
Binance, the Nigerian government said, failed to register with Nigeria’s tax collection agency, the Federal Inland Revenue Service (FIRS), which is an offense punishable under Section 8 of the Value Added Tax Act of 1993.
The crypto exchange was also accused of not filing tax forms or paying business and value-added taxes in an Abuja Federal High Court case. Binance was further accused of helping consumers avoid taxes.
UK citizen Anjarwalla and former US IRS special agent Gambaryan were detained on February 26. The duo arrived in Nigeria after the government threatened to ban the company’s website in a forex speculation crackdown.
Binance’s regulatory issues in Nigeria are related to the government’s push to stop forex speculation after naira volatility. The Nigerian central bank examined Binance peer-to-peer trading in February, confirming allegations that some traders manipulated prices to profit from arbitrage, TechCabal reported last week. What is more, Binance is also required to submit user data with the EFCC by court order.
Binance said it obeys the authorities after stopping naira services, TechCabal reported, adding that since 2020, the company has responded to over 626 information requests to aid government investigations into scams, fraud, and money laundering.
Meanwhile, a report by Premium Times on Monday revealed that Anjarwalla managed to escape from the Abuja guest house where he and Gambaryan were being held. As per the report, he was escorted to a nearby mosque to pray before fleeing.
It is reported that he departed the country on a Middle East airline. The office of the NSA reported that he left Nigeria with the help of a smuggled passport.
“Security agencies are collaborating with Interpol to secure an international arrest warrant for the suspect,” stated a release.
